3 Lithium Stocks to watch in 2021 as EV Demand is Expected to Boost - Kalkine Media

June 29, 2021 11:52 AM BST | By Suhita Poddar
Follow us on Google News:


  • The demand for Lithium is continuously increasing, with electric vehicles in demand.
  • More than 50% of the Lithium produced is used in rechargeable batteries compared to 14% almost a decade ago.

Lithium is a key component in rechargeable batteries, and with the rising demand for electric vehicles, lithium stocks are expected to gain momentum, especially when industries are moving towards green technologies, electric vehicles are in focus. Earlier this year, a Deloitte report highlighted that the lithium demand could double or triple by 2030.   As the EV market is growing exponentially, the next two decades can be decisive as most countries are setting their net zero carbon goals, and car manufacturers are looking for cost effective transition.

A US Geological Survey report stated that batteries account for about 70% of lithium consumption worldwide, followed by ceramics and glass. Most of the world’s lithium is produced by only select countries. More than 50% is contributed by Chile alone. However, the demand for lithium has increased significantly in last decade. More than 50% of the lithium produced is used in rechargeable batteries compared to just 14% in 2010. The automotive industry has picked up demand with the gradually reopening of the economy, and the electric vehicles segment is expected to boom, so is the lithium demand.

Copyright © 2021 Kalkine Media

We will focus on three Lithium stocks listed on the London Stock Exchange:

European Metals Holdings Ltd (LON: EMH)

European Metals Holdings Ltd is a mining and mineral development company focused on the Cinovec Lithium/Tin Project in the Czech Republic.  The company is listed on the Australian as well as UK stock exchange.

Earlier in June, the company has announced its engagement with Minviro, which will provide an ISO-compliant life cycle assessment (LCA) for the entire Cinovec lithium/tin project. LCA is a widely accepted method used to quantify climate change and other environmental impacts for industrial processes.

Through this engagement, the company is looking for a transition towards climate neutrality and building a more sustainable society. As per the quarterly report ending March 2021, the company has successfully completed 12 programmes of a total of 19.

On 28 June, the shares of European Metal closed at GBX 83.00.  The stock has delivered more than 407% return in the last one year.

Kodal Minerals PLC (LON: KOD)

An FTSE AIM All-share company is a development and exploration company with a focus on its Bougouni Lithium Project in Southern Mali. Earlier in June, the company has got acceptance of the feasibility study application for the Mining Licence application for its Bougouni Project.

Kodal will pay £135,000 as the fee to continue to advance the application process. The direction Nationale de la Geologie et des Mines ("DNGM") will then draft the Mining Licence and send to the Ministry of Mines, Energy and Water. Finally, the letter will be sent to the office of the Prime Minister for formal signing.

On 28 June, the shares of Kodal Minerals closed at GBX 0.41. The stock has delivered more than 742% return in the last one year.

Zinnwald Lithium PLC (LON: ZNWD)

Germany-focused lithium project company Zinnwald Lithium aims to supply value-added lithium products to Europe’s rapidly growing electric vehicle and energy storage market. In June, the company has entered into a binding agreement to acquire the 50% of Deutsche Lithium, which is developing the advanced Zinnwald Lithium Project in Germany.

This acquisition will give Zinnwald Lithium PLC the full ownership and operational control of the project, bringing Zinnwald a step closer to becoming a key supplier of batteries in Europe.

As per the audited results for the year ended 31 December 2020, the company is well-funded for 2021, with a €4.8 million cash position as of February 2021.

As of 28 June, the shares of Zinnwald closed at GBX 19.75. The stock has delivered more than 232% return in the last one year.


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 Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. 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. 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/video 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 or video used in the Content unless stated otherwise. The images/music/video 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.

Top LSE Listed Companies