LAC and SLI: Time to bag lithium stocks as Canada invests in EV dream?

Published on March 18, 2022 04:34 AM EDT

More on: Standard Lithium Ltd. Lithium Americas Corp

LAC and SLI: Time to bag lithium stocks as Canada invests in EV dream? — Image source: © 2022 Kalkine Media Inc

Highlights

Lithium stocks have once again become a hot topic on Canadian markets after the federal and Ontarian governments announced their decision to invest in a Honda factory in Alliston, Ontario.

This plant will reportedly undergo an upgrade to be able to manufacture hybrid electric vehicles (EV).

Standard Lithium stock rocketed by approximately 150 per cent year-over-year (YoY).

Lithium stocks have once again become a hot topic on Canadian markets after the federal and Ontarian governments announced their decision to invest in a Honda factory in Alliston, Ontario.

This plant will reportedly undergo an upgrade to be able to manufacture hybrid electric vehicles (EV).

Since lithium is an important ingredient in the making of EVs, companies dealing with this element, like Lithium Americas Corp (TSX: LAC) and Standard Lithium Ltd (TSXV: SLI), are garnering some interest.

Let us talk about these two lithium stocks.

Lithium Americas Corp (TSX: LAC)

Stocks of Lithium Americas (TSX: LAC) surged by roughly three per cent to close at C$ 34.96 apiece on Thursday, March 17, after clocking a day high of C$ 35.30.

This lithium stock also swelled by almost 108 per cent in the last nine months.

Lithium America held cash and cash equivalents of US$ 510.6 million and total assets of US$ 817.3 million as of December 31, 2021.

Also read: Which TSX stocks to explore after Canada's inflation soars 5.7% in Feb?

Standard Lithium Ltd (TSXV: SLI)

Standard Lithium saw its stock close at C$ 8.25 apiece on Thursday, up by about five per cent.

This lithium scrip rocketed by approximately 150 per cent year-over-year (YoY).

Standard Lithium had total assets of C$ 184 million as of December 31, 2021, up from C$ 84 million a year ago.

Bottomline

Apart from the big news of Canada investing in the Honda plant, other factors like uncertain oil and gas prices and climate change issues have also attracted some investors to lithium stocks.

If market conditions favour, lithium companies could continue to gain momentum in the future amid rising efforts to combat environmental challenges.

Also read: Molson (TPX.B) and QSR: 2 TSX consumer stocks for St Patrick's Day

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

Kajal Jain

Author

Kajal Jain - Analyst
623 Posts
Kajal is a commerce graduate with expertise in the financial corporate sector. At Kalkine, she writes on Canadian equities and markets. In her free time, she enjoys music and gardening and likes to travel....
Shreya Biswas

Editor

Shreya Biswas - Multimedia Journalist
408 Posts
Shreya Biswas is a multimedia journalist with a degree from the Asian College of Journalism. Previously a literature student-turned-political reporter, she now writes on market trends at Kalkine Media. When not chasing deadlines, she enjoys bloggin...

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.