Lithium stocks refer to shares of companies engaged in the exploration, mining, production, and refinement of lithium, driven by the increasing demand for lithium-ion batteries in electric vehicles (EVs) and renewable energy storage.
Lithium is not as abundant as other resources, and its supply-demand imbalance has driven up prices, benefiting companies involved in its production.
However, risks associated with lithium stocks include price fluctuations, environmental consequences of mining, technological shifts, and geopolitical tensions impacting supply chains.
Investors interested in lithium have options such as investing in specific lithium companies, lithium ETFs, strategic partnerships, or trading lithium futures.