• Last Updated:
  • Dec 20th, 2017 2:16 pm
Tags:
[OP]
Sr. Member
User avatar
Jul 20, 2003
876 posts
22 upvotes
Surrey

Lithium Stocks

Any thoughts on Lithium Stocks? It has run up pretty nicely since last couple of months. With all these EVs coming up in the market and some car companies declaring that they will go EV in the near future, maybe this is a good time to pick some shares?

I currently have SLL (Standard Lithium) and NMX (Nemaska Lithium).
5 replies
Deal Fanatic
Jan 27, 2006
7450 posts
2274 upvotes
Vancouver, BC
You can but an Lithium ETF such as LIT in the US to give you general exposure over a number of companies without the individual company risk.
Newbie
Jun 20, 2017
33 posts
6 upvotes
Bought in to NMX @ 2.06 & BCN @ 1.80

Lets see how this goes
Deal Addict
User avatar
May 11, 2014
1887 posts
829 upvotes
Iqaluit, NT
Matrix_dot_ca wrote:
Nov 7th, 2017 4:52 pm
Any thoughts on Lithium Stocks? It has run up pretty nicely since last couple of months. With all these EVs coming up in the market and some car companies declaring that they will go EV in the near future, maybe this is a good time to pick some shares?

I currently have SLL (Standard Lithium) and NMX (Nemaska Lithium).
The biggest problem with lithium mining is that most lithium mined is by-product meaning it is fairly easy for companies unrelated to lithium to source it. The major players that do exist have such a huge amount of sources that even with increased demand, there doesn't seem to be scarcity issue for the commodity. The same thing occured with rare-earths a few years ago when China blocked shipments to Japan. Molycorp as one of the few non-Chinese suppliers ramped production. Japanese companies started using less rare-earths and developed engines and components cutting it all together. Chinese suppliers realized they've just killed their market and they opened up, Molycorp goes bankrupt.

The thing is you already missed out on the ramp-up if you are trying to enter here. I would advise against going in at this point. I don't see a scarcity issue, I don't see major price increases. Demand will increase, yes, but other sources such as cobalt are seeing demand.

I think if you were to want to invest in this space, I would be looking at battery makers and the auto companies themselves. Companies that show promise in building newer, longer-range vehicles would be your better bet. I would keep an eye out on the news. Eg. Volkswagen has been redirecting investment into electric vehicles. They have the cashflow to back their investments unlike Tesla. etc.

I may be wrong here, but just on the basis of what's available, lithium doesn't seem like a good bet for even speculative investments.
Support your local Credit Union! PM for different options available!

Saskatchewan Pension Plan Upto $6000/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/saskatch ... an-985264/
Deal Fanatic
User avatar
Jul 17, 2008
7946 posts
1529 upvotes
Any iShare or Vanguard lithium ETF's?

What ETF's are available for lithium to take advantage with QT no commission ETF? I'd like a CAD ETF that contains the big 4 international players

Top