Investors’ interest in the lithium market is evident in the Global X Lithium & Battery Tech ETF’s (LIT) 50.4% returns over the past six months versus the SPDR S&P 500 ETF Trust’s (SPY) 27.8% gains. And, according to Mordor intelligence, the lithium market is expected to grow at a CAGR of more than 10% over the next five years.
Lithium is not only an important component for EV batteries, it is also used for energy storage in batteries for many other devices, such as cell phones, laptops, and grid storage. Consequently, lithium has become one of the most highly sought-after commodities. Given the commodity’s promising prospects, analysts are very optimistic about the performance prospects of Sociedad Química y Minera de Chile S.A. (SQM) and Lithium Americas Corp. (LAC) shares in the near term. So, we think it could be wise to bet on these stocks now.