Welcome back to the channel everyone. So I have two brand new lithium stocks
which have signed some massive contracts and I don’t think you’d want to ignore these plays
if you are bullish about lithium given what they’ve got lined up.
With the rapid growth of the EV battery market, securing large volumes of environmentally
sustainable and high quality lithium materials is becoming one of the important sources of
competitiveness in the industry. And these two plays are the front and centre of that.
So you want to make sure you watch both stocks to assess which one of them deserves a place
in your portfolio if you are bullish about the lithium sector explosion.
So if you hold any lithium stocks in your portfolio,
please make sure you drop a like on the video so we spread the message about the lithium bull run.
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The first stop, Sigma Lithium Corp (Nasdaq: SGML) currently sitting at $9.50 per share with a market
cap of $829m. I’ve personally loaded up on this one given its outlook and when I first shared
this stock on the discord when it was trading at $8 per share and it is already running and now
up 10.8% on the day. You can actually the momentum in after-hours trading up another 2% pushing it to
$9.69. In the last 5 days Sigma is up 12.8% and over 6months it is up 127.8%. YTD it is up 246%
and when you look at the share price performance it shows strong momentum and resilience which
has mostly weathered the market volatility and constantly bouncing back. And with its latest
news, this stock can only go in one direction in my view as I think with the EV boom still
at its infancy, I’m holding this one to get to a $100 per share price with a market cap of $9bn.
Sigma Lithium Corporation is developing a world-class, hard rock lithium deposit
at its Grota do Cirilo property in Brazil, with ultra-high grade and quality lithium. Sigma is on
track to become a premier supplier to the lithium battery industry worldwide and is dedicated to
powering the next generation of electric vehicle batteries with environmentally sustainable and
high purity lithium concentrate. The Company continues to demonstrate its commercial and
market relevance by significantly advancing its strategic goals on three fronts: near-term
production scheduled for 2022, completing the studies for the viability of production expansion
contemplated for 2023, and the determination of the ultimate extent and unique high-purity
quality of mineral resources while maintaining its strategic leadership in the lithium supply chain.
SIGMA LITHIUM AND LG ENERGY SOLUTION SIGNED A MILESTONE SIX-YEAR
BINDING TERM SHEET FOR LITHIUM OFFTAKE AGREEMENT. They announced the signing of a binding term sheet
for an offtake agreement on a “take or pay” basis for the sale of 6% battery-grade
high purity and environmentally sustainable lithium concentrate
to LG Energy Solution, one of the world’s largest
manufacturers of advanced lithium-ion batteries for electric vehicles.
The six-year LG Offtake for Battery Grade Lithium Concentrate scales from 60,000 tons per year
in 2023 to 100,000 tons per year from 2024 to 2027 subject to Sigma Lithium and LG executing
a mutually acceptable definitive documentation to implement the Offtake. Sigma Lithium and LG
also agreed to negotiate each year, starting in 2022, an additional optional supply of
Lithium, not otherwise committed to in the offtake arrangements, as per the table below
where LG will purchase on a “take-or-pay” basis 60,000 tons per year of Lithium Concentrate
for the first phase of Sigma Lithium’s production, increasing by 40,000 tons per year
during the second phase of production, for a total purchase on a “take-or-pay” basis
of 100,000 tons per Year.
The purchase price for the Battery Grade Lithium will be linked to
market prices for the high purity lithium hydroxide during the term of the Offtake.
What is really interesting with this deal is that when you look at the the Top 10
EV Battery Makers in the world, LG Energy is number 2 globally and only second CATL
having delivered 21.4GWh in the first 5months of the year with a market share of 26%. It has also
seems to have had tremendous growth of over 1193% over the last 5 years
and has a broad range of EV makers served including the likes of General Motors,
Groupe Renault, Stellantis, Tesla, Volvo and VW Group. So an enormous growth opportunity
with access to some the world’s biggest automotive OEMs. So some exciting times ahead.
Next to stop is Ganfeng Lithium (OTC: GNENF) which is sitting at $19 per share with a market cap at
$34bn. Ganfeng has been flat over the last 5 days but over 6m it is up 50.5% and ytd it is up 42.8%.
Ganfeng Lithium Co., Ltd. manufactures and sells lithium products in Mainland China,
Hong Kong, rest of Asia, the European Union, North America, and internationally.
It operates in three segments: Lithium Metal,
Lithium Battery, and Lithium Ore Resource. Ganfeng Lithium's business runs through all
important links in the value chain such as upstream lithium resource development,
midstream lithium salt deep processing and metal lithium smelting, downstream lithium battery
manufacturing and comprehensive recycling and utilization of waste batteries, and its
products are widely used In the fields of electric vehicles, energy storage, and pharmaceuticals.
Reuters recently reported that Ganfeng Lithium inked 3-year supply contract with Tesla.
Ganfeng Lithium and its unit GFL International signed a contract
to supply battery-grade lithium products to Tesla
Inc. Ganfeng, being the world's top lithium company by market capitalisation, has already
supplied battery-grade lithium to EV producers including Tesla and this new contract will allow
the company and its unit to provide products to Tesla for three years starting from 2022
and the sales amount and value of the contract are still pending Tesla's purchase orders.
Ganfeng has also recently posted stellar earnings this year, with its third-quarter
and nine-month net profits up 507% and 648% on an annual basis, respectively,
thanks to rising lithium prices and robust demand. The company also announced a $1.31
billion investment in two battery production projects in August.
So some very very interesting and mindblowing prospects ahead for these stocks but only
consider getting in if the price is right for you and if you fully understand the
risks. This video is not financial advice, a buy or a sell recommendation, but is meant to
bring some new and exciting stocks to your attention for you to do your own research..
As always I would love to hear from you, so please let me know your thoughts on these top lithium
stocks in the comments section below and what other lithium plays are catching your eyes lately.
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Thank you so much for being here and I look forward to have you in my next video. Thank you