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Lithium stocks on the rise

Today's Financial News - Posted February 26, 2009

Lithium is becoming the commodity of choice for investors — for good reason. Car makers are choosing lithium-ion batteries for their much-anticipated hybrid and electronic vehicles. And the $2 billion the U.S. intends to invest in that technology will help ease the way.

By Laura Cadden, TodaysFinancialNews.com

Baltimore (TFN): At car shows globally, everybody’s talking lithium…

  • GM announced it would build a plant to manufacture lithium-ion (Li-ion) batteries for the Chevy Volt scheduled to debut in 2011.
  • BMW plans to launch its remodeled Li-ion battery-powered 750i luxury sedan to the Japanese in 2010. This year, the company is producing 500 all-electric MINI Es, also with Li-ion batteries, for leasing in select cities.
  • Toyota hopes to launch plug-in hybrid Priuses with Li-ion batteries later this year.
  • Mercedes-Benz anticipates launching its S400 Blue HYBRID with a Li-ion battery next year.
  • The Ford Escape plug-in hybrid with the same power technology is slated for 2012.
  • Then there’s the Tesla Roadster, Chyrsler EcoVoyager, Dodge ZEO, Jeep Renegade and the Saturn Flextreme.

Government money to the tune of $2 billion has been earmarked for hybrid technology. And with the greater demand for all these Li-ion car batteries, miners, processors and battery manufacturers stand to profit.

Just look at the two stocks we recommended to TFN readers in late January (Read that article here):

Chilean-based lithium producer Sociedad Quimica y Minera de Chile (ADR) (NYSE:SQM) today reported a record year with earnings of $501.4 million for 2008. That’s 179% over 2007.

And their Q4 2008 net income came in at 170% over the same period the year prior.

Our other pick, U.S.-based Polypore International, Inc. (NYSE:PPO), supplies mono- and multilayer membrane separators for lithium batteries – including those used in hybrid electric vehicles (HEVs).

Polypore also reported their 2008 results today: Though restructuring created a loss for Q4, sales were up by 1 million. For all of 2008, sales were up 14% from last year at $610.5 million and adjusted net income was up by 24.1 million.

Johnson Controls, Inc. (NYSE:JCI), in conjunction with with French outfit Saft, was selected to partner with Ford for it’s lithium battery.

Other companies hoping to ride the lithium profit wave can be found in our The TFN Complete Guide to Lithium Stocks.

 

We welcome readers from condron.us


Next Article: A powerful and paralyzing shot to the jaw

Posted by Laura Cadden · Filed Under Oil and Energy 

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3 Responses to “Lithium stocks on the rise”

  • kerry bradshaw Says:
    February 26th, 2009 at 6:36 pm

    GM is NOT building li ion batteries – they are merely assembling the batteries built in China into battery packs. Get the story straight or keep your mouth shut.

  • christoph Says:
    October 20th, 2009 at 8:16 am

    Hey kerry, where did you find the information for that? “gm is not actually building i lion batteries? If that is so, then this bogus information could cost alot of people.

  • brian Says:
    October 21st, 2009 at 4:20 pm

    Ready to go big on lithium, steer me in the right direction

Your comments are welcome