Lithium Stock Face Off: Is ALB More Attractive Than FMC?
Zacks Investment Research | Nov 21, 2017 10:20PM ET
Lithium stocks are firing on all cylinders, thanks to rising demand for lithium-ion batteries that are used to power electric cars. These rechargeable batteries are used by several auto makers, including Tesla, Inc. (NASDAQ:TSLA) , General Motors Company (NYSE:GM) , Navistar International Corporation (NYSE:NAV) and Ford Motor Company (NYSE:F) . They also have applications in consumer electronics (including smartphones and tablets), industrial as well as in the aerospace and defense sector.
The market for lithium-ion batteries has a lot of untapped potential. Demand for these batteries are expected to go up with their increasing adoption in consumer electronic products as well as efforts to promote the use of electric cars by several governments to curb pollution.
China is reportedly considering an eventual ban on production and sales of cars that run on diesel or gasoline. The move is part of Beijing’s efforts to reduce carbon emissions and pollution and is also aimed at promoting the development of electric and hybrid vehicles.
The global market for lithium-ion batteries for vehicles is expected to grow to $30.6 billion in 2024 from $7.8 billion in 2015, according to a report by Navigant Research. Navigant envisions the growth in electric vehicle batteries to be fuelled by premium, long-range vehicles and more affordable vehicles with improved driving ranges.
In this write up, we run a comparative analysis on two prominent lithium players – Albemarle Corporation (NYSE:ALB) and FMC Corporation (NYSE:F) – to figure out which stock is more attractive.
Albemarle, sporting a Zacks Rank #2 (Buy), is seeing significant momentum in its lithium business and is well placed to leverage strong expected growth in the battery-grade lithium market. You can see Zacks Investment Research
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