Should you buy battery stocks in 2024?

The International Energy Agency predicts a tenfold increase in battery demand for electric vehicles over the next decade. Battery stocks haven't fared well for much of 2024, but a big rally has put them back in the spotlight. The Global X Lithium & Battery Tech ETF (ticker: LIT) gained more than 20% in September.

Should you buy cheap lithium stocks?

Investors looking for cheap lithium stocks likely understand the immense growth potential the sector offers. The rapid growth in electric vehicleshas spurred rapid growth in demand for lithium, a chemical element that is a key component in EV batteries. In short, there is no EV revolution without lithium.

Are lithium stocks a risky investment?

Finance, as of May 30, 2024. Lithium stocks, like all commodity stocks, are closely linked to the supply and demand trends in the underlying materials they produce. All investing generally carries risk, and miners like this have specific risks based on their business model. That said, we’ve tried to highlight leaders in the sector based on:

What are lithium stocks?

Lithium stocks are commodity stocks that have principal interests in the mining, refining and distribution of lithium. The companies included under the umbrella of lithium stocks may be involved in the production of other metals and minerals, but lithium will be included in their portfolio.

What is the investment case for lithium stocks?

The investment case for lithium stocks stems from the promising macroeconomic outlook for the industry, so we will first focus on these promising developments after which we will introduce three companies that could benefit from these developments.

What is a lithium & battery technology ETF?

This ETF, as well as competitor Amplify Lithium & Battery Technology ETF (BATT), offer further diversification by including battery and electric vehicle exposure along with pure-play lithium stocks. LIT tracks the Solactive Global Lithium Index and includes Albermarle, along with EV players like Tesla Inc. (TSLA) and BYD Co. Ltd. (1211.HK).