Lithium, a raw material needed in battery production for electronic devices and, increasingly, electric cars, is in danger of running out by the middle of the decade. Although global reserves are certainly sufficient for electromobility and energy storage, demand for the metal will probably increase more strongly in the coming years than producers will be able to expand their capacities.
The lithium price has already reacted significantly to this impending development since the end of 2020, from which lithium shares have in turn benefited significantly. Besides other companies such as Albemarle, Standard Lithium and Rock Tech Lithium, the shares of the Chinese lithium company Ganfeng Lithium also recorded further gains.
Since October 2020, the shares of the company, which specialises in the production and marketing of lithium products, have risen by 380% from €4 to just under €20. The setbacks in the spring and in September of this year offered good opportunities for additional buying. Right now, the price is at €15.90, which is equivalent to 146 Hong Kong dollars. The price is thus slightly below the 200-day average.
According to figures released on Oct. 26, the company generated revenue of just under $3 billion against a forecast of $2.44 billion. Last quarter, this was still at $2.46 billion. EPS stands at $0.73 versus a forecast of $0.44.
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