Mike Vinokur Albemarle Corp ALB-N DON'T BUY Jul 05, 2024

Lithium is notoriously volatile and has been down because Wall Street has fallen out of love with EVs. But this remains a major growth area. Recently they reported a strong quarter and hugely raised their full-year forecast. He believes in lithium and EVs long term. Sell into strength and buy on weakness, like now.

They'll move 1.9 million metric tons (of lithium) this year, and 3.7 by 2030. It bounced off $185 and is a great entry point here.

There's lithium everywhere. It's going to be an opportunity for EVs. But if you look at the price of a giant like ALB, the shares have come down, and that's just gravity taking hold of high valuations. If you need to sell, sell. Restructuring restricted share trading earlier this week.

Lithium exposure good for investors. Speculative investment given nature of commodities. Don't get over exposed. Balance in portfolio. 

Lithium prices have plunged. She will add to her position but not until lithium stabilizes. Commodity weakness is already built into the lithium stocks.

The energy transition from fossil to renewable takes time. That's the reality. There's plenty of lithium in the world, but how quickly can we get it to market? The market was surprised by how quickly brine mining in Chile. Also, people aren't buying EV's as quickly as the market expected. Lithium is close to the bottom, so the risk/reward looks good.

Not bullish. Lithium sector tough. 

The EVs market isn't ready yet; there aren't enough charging stations.

Lithium prices are -55% the past year. This is about China, which has the worst GDP throughput to earnings; GDP doesn't enhance earnings. However, commodity prices do. China amounts to 60% of all EV sales. If economic stimulus continues there, it will put a floor under lithium prices.