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ALB Stock: Why Albemarle and Other Lithium Stocks Are Slipping Today

The impressive rise in lithium stocks of late has certainly been something to watch. Indeed, investors looking for sectors with strong catalysts have looked…

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This article was originally published by Investor Place

The impressive rise in lithium stocks of late has certainly been something to watch. Indeed, investors looking for sectors with strong catalysts have looked to lithium companies for such growth. Among the top players in this sector is Albermarle (NYSE:ALB). Indeed, as the world’s largest lithium producer, ALB stock has been on a very nice trajectory this year. This run has been due to a number of key factors.

Source: IgorGolovniov/Shutterstock.com

First, investors are pricing in what is expected to be a lithium shortage in the years to come. Demand for batteries and new battery technologies has meant surging prices in the lithium space. For Albermarle, this has been a great environment. This demand surge has come at a time when new mine development has become a bit more tricky.

As with any other sector, bringing new mines online doesn’t happen overnight. Accordingly, a massive spike in demand can cause dislocations in commodity prices over the short-term.

That said, ALB stock has had a big down day today and is trending. Currently, shares of Albermarle are down more than 6% on a relatively flat day in the markets. Let’s take a look at what’s driving this top lithium stock lower today.

ALB Stock Lower on Ongoing Union Battle

Today, it was announced that a Chilean union had rejected Albermarle’s most recent labor contract offer. This has led to mounting pressure for Albermarle, as the company continues to battle ongoing union issues for its Chilean mine.

Reportedly, the 135-member union walked off the job more than a month ago. This mine is key for Albermarle and has become a point of contention for investors. Three other unions struck labor deals earlier in 2021, leading many investors to believe this work stoppage would be short-lived.

Indeed, many were hoping that this latest offer would resolve the ongoing dispute. However, news that this labor dispute may continue for longer than expected has hurt shareholder confidence.

How quickly this mine gets up and running to full capacity remains to be seen. Accordingly, investors bullish on Albermarle’s long-term prospects are stuck in an interesting position right now. This stock is likely to be more volatile than usual in the coming weeks and is one that investors should keep on their watch list now.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Energy & Critical Metals

Blue Sky Uranium Sued By Environmental Activists Over Flagship Project

When it comes to markets, sometimes, things just don’t go your way. After rising quickly in a sudden bull market
The post Blue Sky Uranium Sued By Environmental…

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When it comes to markets, sometimes, things just don’t go your way. After rising quickly in a sudden bull market for uranium, Blue Sky Uranium Corp (TSXV: BSK) appears to have just had the rug pulled out from under it.

After waiting years for a bull market, the company this morning notified the market that just when things were going its way, its become embroiled in a lawsuit. The firm this morning indicated it has received noticed that anti-mining and environmental activists in Argentina, where the company is focused, have taken aim at its flagship asset, the Amarillo Grande project.

The activists have filed a lawsuit before the Supreme Court of the Province of Rio Negro in the country, arguing for environmental protection rights, or Amparo, against the project. The bright side here, is that attempts to halt exploration of the properties via a preliminary request until the final decision was made on the case was denied by a Judge assigned to the matter.

Also included in the lawsuit is the Government of Rio Negro, whom is defending the claim. The company for its part states that it has obtained all relevant permits, and believes that the claims made by the activists are without merit.

In the interim, Blue Sky has stated that it intends to proceed with its planned exploration of the properties, working under the pretense of “business as normal.” The company indicated that it continues to proceed with its ongoing drill program as planned, wherein the firm is currently drilling 4,500 metres in aggregate on its Amarillo Grande Uranium-Vanadium project.

Blue Sky Uranium last traded at $0.355 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Blue Sky Uranium Sued By Environmental Activists Over Flagship Project appeared first on the deep dive.

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Energy & Critical Metals

GM Advises Bolt Owners to Park 50ft Away From Other Vehicles — Report

Global vehicle manufacturer General Motors (GM) has advised its customers to park their Bolt electric cars at least 50 feet away from other vehicles due…

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Global vehicle manufacturer General Motors (GM) has advised its customers to park their Bolt electric cars at least 50 feet away from other vehicles due to the risk of fire, according to a report published by StreetInsider.com.

The company said, “In an effort to reduce potential damage to structures and nearby vehicles in the rare event of a potential fire, we recommend parking on the top floor or on an open-air deck and park 50 feet or more away from another vehicle.”

GM has also advised not to leave Bolt EVs unattended while charging, even if the customer is using a charging station in a parking deck. Earlier, GM had requested Bolt owners to park their vehicles outdoors, away from structures, and to not charge them overnight.

The new warning comes after the company recalled over 140,000 Chevrolet Bolts, manufactured since 2016, due to the risk of batteries catching fire. There are confirmed reports of at least 12 vehicles catching fires but more continue to be reported. (See General Motors stock chart on TipRanks)

On September 13, Barclays analyst Brian Johnson reiterated a Buy rating on the stock and lowered the price target to $68 from $71 (32% upside potential).

In a research note to investors, the analyst said, “The semiconductor chip shortage is driving further downside to GM North America wholesales, but GM can still deliver results inside its guidance range.”

Overall, the stock has a Strong Buy consensus rating based on 13 Buys and 1 Hold. The average General Motors price target of $73.36 implies 42.4% upside potential. Shares of the company have gained 61.4% over the past year.

Related News:
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The post GM Advises Bolt Owners to Park 50ft Away From Other Vehicles — Report appeared first on TipRanks Financial Blog.

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Energy & Critical Metals

BASF and CATL partner with a focus on cathode active materials and battery recycling

BASF SE (BASF) and Contemporary Amperex Technology Co., Limited (CATL) announced a strategic partnership on battery materials solutions, including cathode…

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BASF SE (BASF) and Contemporary Amperex Technology Co., Limited (CATL) announced a strategic partnership on battery materials solutions, including cathode active materials (CAM) and battery recycling. The collaboration aims at developing a sustainable battery value chain, in support of CATL’s localization in Europe and contributes to achieving both companies’ global carbon neutrality goals.

CATL has launched its project to build up its first European factory in Germany to localize lithium-ion battery production. With this, it is accelerating the development of a local supply chain for European customers and consumers.

As the largest chemical supplier to the automotive industry, BASF has established a strong position in the CAM market including a global manufacturing and R&D footprint, and a broad portfolio of mid- to high-nickel, manganese-rich, cobalt-free CAM.

In Europe, BASF is introducing CAM production with an industry-leading carbon footprint through its advanced process technology, a secured local raw materials supply chain, a favorable energy mix for production, as well as short and effective logistics along the supply chain.

The strategic partnership with CATL allows BASF to work closely with a globally leading battery producer on CAM and battery recycling. This cooperation will deepen BASF’s expertise and strengthen its global market position.

Through the partnership with BASF, CATL targets to improve its European service capabilities by developing a localized battery recycling network and a secure raw material supply chain in the region.

The transformation towards electromobility requires strong partnerships along the value chain. Pairing BASF’s strong position as a leading supplier for cathode active materials with CATL’s expertise in lithium-ion batteries will speed up innovation and the formation of a sustainable battery value chain worldwide.

—Dr. Markus Kamieth, Member of BASF’s Board of Executive Directors

The partnership with BASF is another important step for our localization journey in Europe. With CATL’s innovative battery technology and BASF’s deep materials expertise, we will further enhance our capability to support our worldwide customers and accelerate the global drive towards carbon neutrality.

—Zhou Jia, President of CATL
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