Copilot Selected by Albemarle Corporation, Livent Corporation, and Lithium America
Microsoft’s generative AI tool Copilot has revealed three lithium stocks that could generate a 300% return by 2030.
On the 7th, Copilot selected Albemarle, Livent Corporation, and Lithium Americas as three lithium stocks expected to increase profits.
Albemarle achieved more than $7 billion in sales last year due to a sharp rise in lithium prices. It continues to deliver excellent results this year, recording two quarterly earnings beats. However, due to investors’ pessimistic sentiment about lithium prices, Albemarle’s stock price has fallen nearly 41% since the beginning of the year.
Nonetheless, Copilot predicts that if lithium prices rebound, Albemarle’s stock price will also follow an upward trend. It emphasized that potential investors should also take interest as Albemarle’s valuation is only 7.8 times its forward earnings.
Copilot also highlighted Livent as a lithium stock to watch. Livent has a solid customer base, having secured long-term contracts with Tesla, BMW, LG Chem, and Panasonic. This enables it to generate stable and predictable revenue, as well as access the rapidly growing electric vehicle market.
Livent has been expanding its production capacity in Argentina, which has the world’s largest and richest saltwater resources, over the past few years. It is also expected to double its production capacity in China through storage factories, another rapidly growing region.
Livent demonstrated record sales growth last year. Although sales growth has slowed this year as the lithium price rally has cooled, the demand for electric vehicles remains high, making Livent’s future outlook positive.
Lastly, Lithium Americas is developing two large-scale lithium projects, Cauchari-Olaroz in Argentina and Thacker Pass in Nevada, USA. The Thacker Pass project is evaluated to have the potential to extract 16.1 million tons of battery-grade lithium carbonate (LCE).
The Thacker Pass project also attracted an investment of $650 million from General Motors (GM). Lithium Americas expects the Thacker Pass project to generate an annual EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $1.2 billion.
By. Jung Deung Yong
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