The Chilean chemical company Sociedad Química y Minera de Chile is one of the largest lithium producers in the world. Founded in the late 1960s, the company benefits from the fact that the home country has one of the largest lithium reserves in the world. The company also benefits from the production of potassium nitrate and iodine. There has already been a trend with companies producing lithium chemicals, battery manufacturing companies and even leading car manufacturers investing in or collaborating with suppliers / miners of raw materials.
Check out the lithium market and learn about some of the most important lithium stores to see. The $ 14.4 billion company recently paid shareholders a 3.90% dividend. lithium mining stocks In addition, net income has grown tremendously, with an increase of more than 6,100% in YOY. And the profit margin has increased by more than 4,100% year after year.
While demand for lithium is expected to explode in the coming years with demand for electric vehicles that will skyrocket, metal prices fell in 2019 due to an oversupply problem caused by an avalanche of new lithium stocks. Australia, the world’s largest producer of metal batteries with a production of 51,000 tons per year, has commissioned six new lithium mines since 2017. Chile is the second largest producer with 16,000 tons of annual production and has opened its door to foreign companies looking to explore lithium in the resource-rich Atacama salt. In the past two decades, Chile’s production has quadrupled with other countries that have seen a similar increase in production during the same period. World lithium production will grow five times from 80,000 tons in 2020 to 400,000 tons in 2030. There is a shift to a preference for hard rock spodumen partly due to inputs for the production of battery cells from electric vehicles.
The two main types of lithium produced by companies are lithium carbonate and lithium hydroxide. Jiangxi Ganfeng Lithium is a large Chinese lithium producer that investors should observe. The company is the largest producer of lithium compounds in China and is one of the world’s largest producers of lithium metal in terms of production capacity.
There are many companies on the market, but there is still a lot of uncertainty from an investment point of view. However, these ETFs will be vulnerable to any market recession affecting all lithium or battery supplies and do not offer the same diversification or defensive features that some of the largest lithium producers offer. Choosing a stock is a way to enter the lithium market, but listed funds can enable investors to acquire wider exposure with less risk. ETFs behave like shares, but derive their value from investments in many companies operating in the same sector.
Companies with a quarterly EPS or a turnover growth of more than 2,500% were excluded as outliers. The company also has about half of its market share in potassium nitrate and is the world’s largest producer of iodine. These three industries should take advantage of current trends towards electric vehicles, increased crop production and health care expenditure. Lithium is one of the smallest parts of the company, but SQM is committed to rapid development pending increased demand as electric vehicles take off. The aim is to drastically expand production to 120,000 tons in 2021 and to increase its capacity to produce both lithium carbonate and hydroxide. Due to the increase in electric vehicles, the demand for lithium has more than doubled in the past ten years.