What happened
Shares of lithium mining start-up Lithium Americas (LAC +0.00%) jumped 76.9% through 3 p.m. ET Monday. It's no huge mystery why: The price of lithium is going up by a lot.
Lithium salt evaporation ponds. Image source: Getty Images.
So what
As OilPrice.com reported this morning, "Lithium prices have nearly doubled in 2022 amid [an] insane commodity rally." And that's after those same lithium prices nearly quadrupled in 2021.
Rising demand for lithium to make the batteries for electric vehicles (EVs) is the primary culprit. Demand for new EVs is growing so fast that forecasts for lithium demand are running ahead of forecasts for lithium supply -- and when demand exceeds supply, prices tend to go up.
Now what
That will be true for both the price of lithium and lithium stocks like Lithium Americas (and for the price of EVs, too, in case you're in the market for one). Investors looking further afield can find opportunities as well. OilPrice.com notes that "prices of green metals [other than just lithium are also] projected to reach historical peaks for an unprecedented, sustained period in a net-zero emissions scenario."
If you're afraid that the price of Lithium Americas stock has gotten away from you, consider investments in miners of cobalt, such as Glencore International (GLNCY +0.85%); copper, like Freeport-McMoRan (FCX +0.77%); or nickel, including BHP Group (BHP +1.46%) -- all up today alongside Lithium Americas, but up only about half as much.
