The things you should know about lithium stocks

The lithium stocks canada has been on the increasing end due to an increase in its demand in Canada. Lithium is a name coined from Greek word “lithos” meaning stone. It is an element with its traces found in rocks. This rocky element has several uses including medicine and electrical engineering. Lithium industry has been making tremendous progress since 2015 due to the increase in lithium demand. This has resulted in a considerable increase in cash-flow. The main reason for the increase in demand experienced in the lithium industry is the quest for an automatic industry to meet up with the increasing demand for the electric vehicle. This is due to the importance of lithium in the manufacture of automotive batteries. The lithium battery is generally used for electric vehicles. It is also used mainly in the production of different facilities for stationary energy storages.

Facts about lithium stocks you need to know

The information gathered from Bloomberg has it that the demand for lithium is expected to hit above five hundred thousand tons in six years time, which is by 2025. It is a huge jump from the formal one hundred and sixty-three tones in the year 2015. That says the demand is expected to experience a compound growth rate of about 21% annually. This particular estimate by Bloomberg is notably low compared to the estimated amount by Canaccord, which is about nine hundred and twenty thousand by 2025. According to Canaccord, the compound growth rate annually in the demand of lithium is expected to be above 47%. This has had a huge impact on the lithium stocks in Canada, China and others.

Understanding more about Canadian’s lithium stock

While the center-stage of lithium used has been on the electric vehicles, its uses in the manufacturing of different energy storages will likely go above those of Electric Vehicle by 2030. Notwithstanding the hype about lithium demand in Canada and other parts of the world, the performance of lithium stock has been considerably low. Due to the crashing down of the “Global X Lithium and Battery Tech ETF” industry, up to 20% of price value has been lost. This recorded lost by lithium industry has hugely impacted the stock market of lithium.

Check online for more information about lithium stocks canada

Following the increase in lithium demand, one will be forced to ask the current state of lithium stocks canada. Even as SQM has been permitted to triple the production of lithium, which triggered fear of oversupply, what people should know, is that such massive production cannot just be done within a short time. It is what will take a considerable period of time for the company to reach the estimated production milestone. For now, there is still a tight supply of lithium with two hundred and thirty-six thousand tons of supply and two hundred and twenty-eight demanded tones in 2017.

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