Why Lithium Americas Stock Jumped 10% Today
Lithium Americas (NYSE: LAC) stock popped on Tuesday and was trading up 9.8% as of 2:10 p.m. EDT. Four factors drove the lithium stock higher today: lithium prices, Albemarle (NYSE: ALB), Tesla, and Canada's Toronto Stock Exchange (TSX).
Lithium hydroxide prices hit all-time highs of $20,000 per metric ton on Sept. 8, according to S&P Global. The primary reason is a surge in electric vehicle sales in China that has driven demand for lithium-ion batteries higher. Between January and August, sales of new electric vehicles (NEVs) in China jumped 194% year over year, according to data from the China Association of Automobile Manufacturers. NEVs include battery-electric, plug-in hybrid electric, and fuel cell electric vehicles. In another example of how rapidly the EV market is growing, consider that Tesla's sales more than doubled in the first half of the year.
The combination of soaring demand and prices is the perfect recipe for growth for lithium stocks. In fact, Lithium Americas made it onto TSX's 2021 TSX30 list, announced today, showcasing the 30 best-performing stocks on the exchange in the past three years. Lithium Americas shares gained 162% during that period, according to the report.
Source Fool.com
