Lithium maker Livent shares more attractive stock after the report
Livent (LTHM) rose 8.6% on Friday after the lithium maker raised its annual earnings and earnings guidance. Livent is expanding its manufacturing facilities in the US and Argentina, anticipating higher prices and demand.
Livent, an international manufacturer of lithium products, last week reported its second-quarter 2021 results, followed by an 8.6% rise in its stock on Friday.
Livent has a market capitalization of about $ 3.25 billion, and shares have surged 222% over the past year amid a massive shift to electric vehicles by global automakers.
A strong upward trend in the shares of Livent’s competitors – the smaller Piedmont Lithium (PLL) and the larger ones – Sociedad Quimica y Minera de Chile SA (SQM) and Albemarle (ALB). Below is their timeline from the end of 2019.
Livent manufactures lithium and lightweight yet durable alloys for use in various industries, from athletic shoes and wearables to batteries in electric vehicles and aircraft.
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The company reported revenue and profit growth for the second quarter in a row, driven by higher shipments and higher lithium prices.
Livent’s second-quarter earnings per share were $ 0.03, compared with a loss a year ago.
Revenues rose to $ 102.2 million, up 11% over the first quarter of 2021 and 57% up over the previous year.
Livent’s quarterly earnings and earnings statistics for the last two years are available here.
The highlight of the quarter was the successful issue of Livent’s additional shares in June. The raised funds for $ 262 million from these shares will expand lithium production facilities in the United States and Argentina.
In a press release, the company said the plans would be “supported by long-term supply agreements, improved market conditions, and continued support from local authorities.”
Paul Graves, President, and CEO of Livent. Said, “Increasing production capacity and adopting a low-cost lithium mining model will strengthen our commercial position as a preferred partner for leading car and battery manufacturers.
In 2021, the lithium market environment will remain very positive, and we see that the trends will continue in 2022. Pricing conditions have improved significantly throughout the year. We have seen a marked improvement in demand for lithium hydroxide and carbonates, along with a significant increase in sales of electric vehicles worldwide.
Increasing support for electrification from OEMs, governments, and consumers reinforces expectations of significant long-term growth in lithium demand.
