The U.S. Government Could Soon Throw its Weight Behind Lithium

by | Mar 30, 2022 | Stocks to Watch

We’ve been pounding the table over lithium for quite some time.

That’s because the lithium bull market shows no signs of slowing – at least not soon. For one, by 2030, it’s expected we’ll see up to 125 million electric vehicles on the road. Two, major automakers are starting to abandon internal combustion engines for EVs. Three, governments all over the world wants EVs on the road yesterday.

There’s just one problem. The world is in short supply, with massive demand.

Even the International Energy Agency is warning that the, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.”

That’s why we’ve mentioned stocks like Lithium Americas (LAC), Albemarle (ALB), American Lithium (LIACF), and ETFs, like the Global X Lithium & Battery Tech ETF (LIT).

Today, those stocks got another big boost.

There’s speculation President Biden could invoke a Cold War-era defense law this week to encourage domestic production of metals needed to make EV batteries.

In fact, according to Bloomberg, the DPA would allow the government to use a $750 million Title III fund to help increase domestic production of essential metals and minerals, such as lithium. That could be extremely beneficial for companies, like Lithium Americas, since it’s the closest to development with its Thacker Pass project.

That’s why shares of Lithium Americas are up $5.04 on the day. Volume is also up to 12.76 million, as compared to daily average volume of 3.7 million shares.

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