If I had to talk about some of the best investment themes for 2023, lithium would be among the top few. As a matter of fact, lithium is likely to be an attractive investment theme throughout the decade.
Governments globally have set an ambitious target for electric vehicle adoption. Research, however, indicates that the targets are impossible without a change in the lithium pipeline. To put things into perspective, the lithium supply gap is projected to be acute by 2035. Supply will be at least 1.1 million metric tons, or 24% less than the demand.
Given this scenario, there are two important conclusions. First and foremost, lithium companies will benefit, and investment in new mines is likely to remain strong. Furthermore, lithium price is expected to stay in a long-term uptrend. This will translate into robust cash flows for lithium companies.
With this overview, let’s discuss the best lithium stock picks for 2023.
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