EV sales are heating up globally, increasing the demand for battery materials.
Amid the buzz in the EV sector, many ASX-listed lithium stocks have notched up multifold gains in the short term.
Market analysts believe that the upside potential in demand for lithium is huge, but much of it may have already factored in the stock performance of miners.
The electric vehicle (EV) sector is riding high on the back of factors like growing consumer awareness about climate change and government incentives, which are fuelling EV sales. The sector is witnessing a burgeoning demand in all segments, from economy to luxury cars.
The year 2020-21 marked a massive 126% growth in EV sales on a YoY basis. The demand is anticipated to rise to 26 million vehicles a year by the end of 2030.
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Lithium is the primary element powering the EV space. As the battery material is in limelight, players belonging to related sectors are gaining a ton of attention from investors.
There has been an unprecedented spike in the share prices of many lithium miners, which have delivered multifold returns. Let us flick through some of the ASX-listed mid-cap companies operating in the lithium space that have delivered excellent returns in the last one year.
Vulcan Energy Resources Limited (ASX:VUL)
Vulcan Energy is one of the top performers on the ASX. Shares of the Company have yielded a return of 1,600% in the last one year. The VUL share price hit an all-time high of AU$16.65 on 13 September 2021. The Company has a market cap of AU$1.72 billion.
The company’s recent deal with German automaker Renault for the supply of lithium along with its collaboration with Rosberg X electric racing team is aiding the business.
Also, Vulcan Energy is all set to debut on the German stock exchange- FSE.
Orocobre Limited (ASX:ORE)
Orocobre has its lithium operations spread across three countries- Argentina, Japan, and Australia. During the June quarter, ORE acquired another ASX-listed major lithium player Galaxy Resources Ltd (ASX:GXY). The merger indicates the potential to achieve a place among the Top 5 global lithium chemicals companies, as per ORE.
ORE closed the day’s trade at AU$9.755 on 15 September 2021, more than 2% up from the previous close. The Company has a market cap of AU$6.08 billion.
Pilbara Minerals Limited (ASX:PLS)
Pilbara Minerals operates one of the world’s largest hard rock lithium projects - Pilgangoora Project, located in the Pilbara region. The project is known for its low-cost spodumene and tantalite concentrates production.
PLS has given more than 600% return to its shareholders in the last one year. The stock has been able to maintain its uptrend for the last one year with support at the level of AU$2.0. PLS jumped 8.849% to trade at AU$2.46 on 15 September 2021
Mineral Resources Limited (ASX:MIN)
The Perth-based mineral explorer has exposure to iron ore and lithium. Mineral Resources operates two hard rock lithium mines in Western Australia – the Mt Marion and Wodgina Lithium projects. The Company plans to continue investing in its lithium assets to become a world-class lithium producer.
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On 15 September, shares of the Company closed the day’s trade at AU$52.190, with a market cap of AU$9.91 billion. The Company paid a dividend of AU$1.75 per share on 7 September 2021, with an annual yield of 5.24%.
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Piedmont Lithium (ASX:PLL)
Piedmont operates a lithium project in North Carolina, US. The Company is focused on advancing the project to produce low-cost lithium hydroxide for the fast-growing EV market.
The North Carolina Tin Spodumene Belt is considered one of the low-cost producers of lithium hydroxide. The Company is developing its world-class asset in the region with a view to contribute towards achieving net zero emission.
Shares of PLL traded at AU$0.77 with a market cap of AU$1.19 billion on 15 September.
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