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

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

Standard Lithium (SLI)’ stock performance

 

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.

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