Albemarle Corp (ALB-N)

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.

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.

It can be a volatile stock and frustrating, because it's tied to the price of lithium. Long-term, though, demand should be fine with it tripling by 2030. Hang on if you own it.

They have lithium deposits in Chile and the US, so are sensitive to lithium price movements. That's why he sold last spring.

Lithium prices are adjusting; China prices in particular are contracting. 
Price was $33,400/ton last week, but futures for August are priced at $23,000. 
ALB in particular got downgraded today by Bank of America, with target price going from $262 to $195.  
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UBS predicts EV sales will rise 30-35% in China this year. If this trend holds true, then China’s demand should offset any weakness in lithium prices. Also, Albemarle’s PE of 11.24x now has risen from 9.4x to start the year, but is historically reasonable considering the media average over five years is 30.85x. Read: PDAC special: minerals for our full analysis.

Just bought it. They own some of the cheapest lithium in the world. They're restructuring their contracts this year, which should boost prices by 25%. It's a long-term global story because EV sales continue to grow. ALB is increasing capacity over the next 8 years.

(A Top Pick March 21/17. Up 7.88%.) This had a wonderful run, running to $144. He runs Stop/Losses on his positions, and got taken out at $130. The lithium stocks were wonderful performers last year. They've had some correction recently, and there has been some discussion about more supply coming into the market.

The largest producer of lithium. When we talk about electrification, electric vehicles, more tablets, smart phones, etc. lithium batteries are going to be in relatively high demand. Demand growth is forecast to be 10% a year for the next decade, and that is even using some relatively conservative assumptions about electric vehicle penetration. Given that this is the largest producer and a very low-cost producer, they should be able to bank very significant cash flow over the course of the next 5-10 years, but governments can very significantly influence adoption. Dividend yield of 0.9%. (Analysts’ price target is $137.)