Lithium is one of the key components used in the making of rechargeable batteries that powers electric cars and portable devices.
Lithium demand is expected to increase further with rise in the use of electric vehicles and portable electronic devices.
Lithium is one of the key components used in the making of batteries that powers electronic components like smartphones, laptops, and electric cars. In recent times, environmental concerns and the consequent rise in demand for electric vehicles has led to higher output and production of lithium. At present, Chile has the largest reserve of lithium, while Australia is the world’s leading producer of lithium.
More than half of lithium produced worldwide is used in the making of rechargeable batteries which is expected to increase further with rise in demand for electric vehicles and portable electronic devices.
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Let us look at 4 FTSE listed Lithium and Battery stocks that could be good investment opportunities:
AMTE Power Plc (LON: AMTE)
FTSE AIM-listed company is one of the leading companies which operates in the manufacturing of lithium-ion battery cells. It focuses on the development of next generation battery and cell structure that improves the energy performance, power delivery and safety of the batteries.
The company has raised fund of £12.9 million through its oversubscribed IPO in March 2021. The company plans to use IPO proceeds to complete the first phase of product development and support its Gigafactory setup. The company could prove to be a great investment opportunity as it is currently working on two UK Government funded project called CELERITAS and ULTRA, where it will develop ultra-fast charging cells and battery packs for electric vehicles.
AMTE Power Plc’s current market cap stands at £71.93 million as of 15 September 2021.
Bacanora Lithium Plc (LON: BCN)
The company is engaged in the exploration and development of lithium at its mining site situated in Mexico. It has around ten licences covering 100,000 hectares in Mexico. The company also has a stake in other lithium mining projects.
Bacanora has multiple lithium mining projects along with stake in companies that operates in lithium production. During the six-month ended 30 June 2021, the company reported revenue of USD 29.7 million. Also, the company along with its subsidiaries has a strong cash balance of USD 160.6 million. The company expects strong demand for the lithium carbonate at 452,000 tons in 2021, mainly due to higher demand for electric vehicles. However, in contrast, the lithium production worldwide is expected to be lower as per the company’s forecast which might lead to the price rise of the metal and benefit the company’s revenue and profitability.
Bacanora Lithium Plc’s current market cap stands at £259.68 million as of 15 September 2021.
Kodal Minerals Plc (LON: KOD)
The company operates in the exploration and development of base metals and precious metal at its two-mining site in Mali and West Africa.
The company has Bougouni Lithium Project in Southern Mali with an estimated capacity to produce 220,000 tonnes of lithium annually with a mine life of 8.5 years. The company has not yet started the lithium production from the site but is expected to start soon after it receives the mining licence which is the final stage of approvals.
Kodal Minerals Plc’s current market cap stands at £54.95 million as of 15 September 2021.
Related Read: Who are the top 5 lithium battery manufacturers in UK?
Zinnwald Lithium Plc (LON: ZNWD)
The company operates in the exploration of industrial metals like lithium through its 100% owned Zinnwald Lithium Project in Germany.
The company has acquired the remaining 50% of Deutsche Lithium GmbH for €1.5 million cash and 50 million new ordinary shares. The acquisition will help the company to unlock full potential of the Zinnwald Lithium Project. The company over the next 12 to 18 months will carry out the testing work at the site to estimate the lithium production capacity and will also have a discussion with the financing partners for the financing of the project.
Zinnwald Lithium Plc’s current market cap stands at £57.51 million as of 15 September 2021.