To The Moon

Lithium prices have been slumping💸💸💸 as supply bottlenecks are easing & 🇨🇳’s demand for EVs, & global demand for many consumer electronics have slowed due to inflation & rising interest rates. However, on a 🐻-ish day for most 🇺🇸 stocks on 28/3 (Tue), 🇺🇸 lithium stocks got a booster🎉 as a major lithium player in the 🇺🇸 Albemarle (ALB) made a $3.7 billion preliminary offer to acquire 🇦🇺’s Liontown Resources (LTR) at a whopping AUD 2.50/share from its previous day’s close of AUD 1.54. Other popular 🇦🇺 lithium stocks e.g. PLS, AKE, SYA got lifted. Despite LTR rejecting the offer, other 🇺🇸 lithium stocks popped up more that 2%-8%, with ALB losing a small 0.33%. Previously, ALB made 2 other offers at $2.20 & $2.35 per share over the last 6 months to buy LTR. Therefore, speculation for an eventual takeover & possibly other acquisitions in the space is bolstering 🇦🇺 lithium stocks😉

🤔💭 Reasons To Celebrate 🇺🇸🇦🇺Lithium Stocks Again:

🥇The bid provided a glimpse of hope that the demand for lithium might prevent further downward spiralling🌀🌀🌀 of lithium prices.

🐂 ALB is 🐂- ish view on lithium demand, it said in Jan it saw global demand hitting 3.7 million tonnes in 2030, up from 669,000 tonnes in 2022. This repeated acquisition offer shows ALB’s conviction for Lithium demand.

🐻 The price of lithium carbonate, which is used in the manufacture of EV batteries🚗🔋, is at a 15-month low since tumbling in Nov 2022 from about about USD 85,000 per tonne to about USD 38,000 per tonne today.

👌 Analyst projections lithium prices late in 2023 & 2024:

* Macquarie - USD 57,500

* UBS - USD 54,750

* Citi - USD 40,000

🥈 If the takeover bid is successful, ALB will have more influence over the direction of supply, demand & prices.

😏 Previously, ALB has exercised its control of lithium units to rationally impact the market dynamics. As recently as Oct 2019, ALB acquired a 60% interest in the Wodgina spodumene mine in Western Australia, immediately idling the facility in what was then an oversupplied market. Only once the spodumene market was trading at improved margins, & at volumes able to absorb the Wodgina tonnes, did ALB (& its JV partner Mineral Resources) commence the restart of the asset.

🤔💭 Is It ⏰To Celebrate 🇺🇸🇦🇺Lithium Stocks Again❓

⭐️ I view the BIG jump in lithium stocks prices as temporary amid an uncertain economic outlook (see my earlier posts on banks & recession) ➡️ If a recession sets in, EV demand will go down, & so will lithium.

⭐️ Any purchases now will be best for short-term trades & not long-term hold until there’s clear direction that a recession can be avoided.

🤔💭 Is LTR A Buy❓

⭐️ Citi analyst put a $2.80 price🎯

⭐️ Bell Potter’s new🎯 is $2.81.

⭐️ Reports suggest Liontown wants something at or above $3.

⭐️ LTR closed at $2.59 on 28/3, which is above the $2.50 offer. Any purchase for “free 💵💵💵” to pocket the difference for the takeover price would be speculative but provides a minimum of 8% profit should ALB lift their offer to $2.80 or above

🙁 A pity I sold my LTR too early as my profit goal was 20%🫠🫠🫠 Oh wellzzz…at least I know that my stock-picking is not bad🤗

I’ll probably wait to see how the 🇺🇸 economy & EV industry does before committing to new lithium stocks. I’ll be watching the sales & earnings of TSLA, NIO, XPEV to determine how the lithium demand might move $Tesla Motors(TSLA)$ Bullish$XPeng Inc.(XPEV)$ Bullish$NIO Inc.(NIO)$ Bullish$Albemarle(ALB)$ $Liontown Resources Ltd(LTR.AU)$ Bullish ALB would be my top pick as it’s nearing its 52 Week Low.

Fellow 🐯🐯🐯 What are your thoughts about lithium stock❓Type away in the comments section❣️Do follow me if you enjoy reading analytical stock research🔍 presented in a fun & easily understandable way😉 & for the Latest Stock & 🗞🗞🗞 Updates🕵🏻‍♀️❣️

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