There are many different ways to buy Lithium Stocks in the stock
market. You can buy the pure play lithium mining companies or buy the lithium battery stocks. Both of these
groups are risky due to the unknowns of the future of lithium.
What is Lithium?
Lithium (LI) is a soft metal that is a good conductor for heat and electricity. The country of Chile has the world's
largest reserves as well as production. Argentina, Australia, and China are big as well but don't have nearly the reserves
of of Chile. What is lithium used for? Lithium is used for ceramics and glass as well as batteries. Lithium
is also used in Nuclear plants, medical devices, and is a treatment for people who are bipolar. Lithium-ion batteries
have been popular over the past decade.
Lithium Battery Stocks
Lithium Stocks 2016 - Tesla Motors (TSLA)
- Tesla is the top lithium stock in 2016 after rising over 500% in the past three years. Tesla isn't a pure play in
lithium but they are innovating on lithium batteries that are powering their line of cars. If you are looking to get
into Lithium, TSLA is probably the stock for you. However, wait until the stock sees a correction below $200.
Tesla is building a large factory in 2016 to build Lithium-ion batteries. These batteries will power their future
line of cars, especially the Model 3 that is priced for the masses.
More on Tesla batteries - To reduce the costs of lithium ion battery packs, Tesla and key strategic partners
including Panasonic have begun construction of a gigafactory in Nevada that will facilitate the production of a mass-market
affordable vehicle, Model 3. By 2020, the gigafactory will produce more lithium ion cells than all of the world’s combined
output in 2013. The gigafactory will also produce battery packs intended for use in stationary storage, helping to improve
robustness of the electrical grid, reduce energy costs for businesses and residences, and provide a backup supply of power.
One of the Top Lithium Battery Stocks in 2016 aside from Tesla
(TSLA) is Energizer Holdings, Inc (ENR). Energizer lithium batteries are very popular and the stock
rallied from $34-$42 last year. If you are looking for a lithium pure play ETF, check out Global X Lithium ETF
(LIT). Other Lithium Battery stocks include Advanced Battery Technologies, Inc. (ABAT),
China BAK Battery, Inc. (CBAK), Tesla Motors (TSLA)