G8 Buy Lithium Americas Corp. (TSX:LAC) Some are getting the work out there Enjoy Jet
Ambrose O'Callaghan | June 16, 2018 | As we look ahead to the next decade, the push for electric vehicles has become a global initiative as part of a broader drive toward renewable energy. The California government has said that it aims to put five million EVs on the road by 2030, while China wants seven million EVs on the road by 2025. An ongoing trade spat between the United States and China has not abated despite some warmer rhetoric between the two governments. The U.S. has sought to degrade Chinese technological development by targeting its theft of intellectual property. The U.S. is also moving to cut dependence on China for lithium by ramping up domestic production. Global demand for lithium is projected to quadruple by 2025. The U.S. produced 2% of the worlds lithium in 2017, but possesses around 13% of global identified resources according to the U.S. Geological Survey. The electric vehicle boom has been a crucial driver for lithium-ion battery demand. Annual global electric vehicle sales are projected to hit 24.4 million by 2030, according to Bloomberg New Energy Finance. Compare that to the 440,000 EVs that were sold worldwide in 2015. Electric vehicles reached 50% of lithium-ion demand in 2016, and its share is expected to widen significantly going forward. The widespread growth of electronics use, including cell phones, laptops, and other devices, will also keep demand up in the coming decades. How can Canadian investors take advantage of this soaring demand? Today well look at one stock thats worth your consideration. Lithium Americas Corp. (TSX:LAC)(NYSE:LAC) is a Vancouver-based resources company that operates the Cauchari-Olaroz lithium project in Argentina and the Lithium Nevada project in Nevada, USA. The stock soared to an all-time high of $14.06 in late 2017, but has since suffered a precipitous drop in value. Shares are down 37.7% in 2018, but have still posted gains of 46% year over year. The company released its first-quarter results on May 14. Developments were on track at the Cauchari-Olvaroz project, with engineering over 80% complete and plant design close to 70% complete. Stage 1 production is projected to commence by 2020. Its Lithium Nevada project posted an update to its mineral resource to 6 million tons of lithium carbonate equivalent at 2,917 parts per million lithium. The company expects to release results of the NI 43-101 Feasibility Study by the end of the second quarter. Lithium Americas posted sales of $1.1 million at RheoMinerals. As of March 31, 2018, Lithium Americas had $43.5 million in cash and cash equivalents. Is it a buy today? Statista has projected that the total global demand for lithium will exceed 420,000 metric tons by 2025. A report from Grand View Research expects the lithium-ion battery market to reach $93.1 billion by 2025, representing a compound annual growth rate (CAGR) of 17%. Lithium Americas is an enticing speculative buy with two promising projects on the table. Our #1 Stock to Buy in 2018 (and Beyond!) When you buy heavily cyclical stocks at low prices... and then hold the shares until the cycle reaches its peak... you can make a very healthy profit. Every investor knows that. But many struggle to identify the best opportunities. Except The Motley Fool may have a plan to solve that problem! Our in-house analyst team has poured thousands of hours into their proprietary research - and this is the result. Our top advisor Iain Butler has just identified his #1 stock to buy in 2018 (and beyond). The last time this stock went from the low point of its cycle to the peak... shares shot from $12 to $40 inside of 4 years. That's an 300%-plus return. And if you missed out on that ride, today might just be your second chance.
News 
Market Data 
Discover 
AI
