Podcast: Top Lithium and Hydrogen Stocks

Ethical & Sustainable Investing News to Profit By!

Top Lithium and Hydrogen Stocks. Prepare for a carbon-free future with these lithium and hydrogen stocks. Investors like these socially responsible ESG ETFs and funds.

Transcript & Links, Episode 114, September 22, 2023

Hello, Ron Robins here. So, welcome to this podcast episode 114 titled “Top Lithium and Hydrogen Stocks.” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources. And look at my newly revised website at investingforthesoul.com! Tell me what you think.

Now, remember that you can find a full transcript, and links to content – including stock symbols and bonus material – on this episode’s podcast page located at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, nor do I receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal to you any personal investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast's webpage for links to the actual articles for more company and stock information. Also, some companies might be covered more than once and there is also 1 article link below that time didn’t allow me to review here.

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1) Top Lithium and Hydrogen Stocks

Now many ethical and sustainable investors are excited about investing in battery metals, so I thought to begin this podcast with this article. It’s titled What are the top five largest lithium companies in the world? It’s by Joseph Morton and found on mugglehead.com. Here’s some of what he has to say.

“1. Ganfeng Lithium (SZSE: 002460) (SEHK: 1772)

Largest lithium salt producer in China, and third in the world

Ganfeng Lithium is a global company specializing in the production of lithium, lithium-based products, various metals and batteries. Established by Li Liangbin in the year 2000, the company is headquartered in Xinyu, Jiangxi, China and operates both domestically and internationally…

With a market capitalization of approximately $35 billion, it holds a significant presence in the lithium industry.

The company doesn’t just have one property, but instead actively engages in overseas investments in lithium companies and projects as part of its strategy to secure long-term competitive resources. The company holds ownership of three lithium brine projects located in Argentina and serves as the largest shareholder of Lithium Americas (TSX: LAC) (NYSE: LAC).

2. Albemarle (NYSE: ALB)

World’s largest supplier of lithium for EV

Albemarle Corporation is a U.S.-based specialty chemicals manufacturing company headquartered in Charlotte, North Carolina. The company operates in three main divisions: lithium, bromine specialties, and catalysts…

When it comes to global lithium and lithium storage product production, Albemarle, along with lithium companies SQM Sociedad Quimica y Minr de Chile SA (NYSE: SQM) and Livent Corporation (NYSE: LTHM), collectively account for slightly over half of the total production. Meanwhile, just under half of the world’s lithium supply is produced by various entities within China.

Greenbushes in Western Australia is one of Albemarle’s largest projects. It’s a joint venture mine shared with Talison Lithium, a subsidiary of the Tianqi Lithium Corporation (SZSE: 002466) (SEHK: 9696)…

Albemarle’s market capitalization is roughly $30 billion.

3. SQM (Sociedad Quimica y Minera de Chile SA)

Largest lithium producer in the world

(SQM) is a Chilean chemical company renowned for its role as a prominent supplier of plant nutrients, iodine, lithium and various industrial chemicals…

For the fiscal year 2019, SQM reported lithium-related revenues amounting to USD$505 million. Notably, in 2021, the company witnessed a substantial increase in its lithium revenues, reaching a total of USD$936.1 million.

4. Tianqi Lithium

Controls over 46 per cent of global lithium production

The Tianqi Lithium Corporation hails from Sichuan, China, and operates primarily in mining and manufacturing…

The company has a market cap of approximately $16.5 billion.

5. Mineral Resources (ASX: MIN)

Operates two significant properties in Western Australia

In recognition of its significant market presence and capitalization, Mineral Resources earned a coveted spot in the S&P/ASX 50 in June 2022, designating it as one of the 50 largest companies trading on the ASX. Its market capitalization is in the range of $11 billion.

Mineral Resources operates primarily in the iron ore sector, but is also actively engaged in the mining of hard rock lithium, with operations in two significant locations within Western Australia: Mount Marion in the Goldfields and Wodgina in the Pilbara.”

End quotes.

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2) Top Lithium and Hydrogen Stocks

A second article with a related theme is this one titled EV Stocks vs. Battery Metal: Which Green Investment Should You Choose? It’s written by Adam Othman and seen on fool.ca. Here’s some of what Mr. Othman says.

“1. Lion Electric (TSX:LEV)

… is a $559.76 million market capitalization vehicle manufacturer, primarily focusing on the production of electric school buses, trucks, and other commercial vehicles. With little competition in the EV space in Canada, its focus on commercial EVs gives it a niche it can enjoy without competing against industry giants…

That said, it is not a profitable company right now… Despite its small presence, this EV stock can deliver stellar long-term returns as the broader industry grows.

2. American Lithium (TSXV:LI)

… is a metals and mining company primarily engaged in the exploration stage. The Canada-based company focuses on acquiring, exploring, and developing lithium deposits.

A small name in the mining industry, it has a $450.78 million market capitalization.

American Lithium stock is not the biggest Canadian lithium stock, but it’s worth watching closely.”

End quotes.

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2 Canadian ESG Stocks for Ethical Investors

Diversifying internationally is often considered a good idea, hence I bring these articles from Canada, for investors both inside and outside Canada. This article is titled 2 Canadian ESG Stocks for Ethical Investors. It’s by Christopher Liew and also found on fool.ca. These are some comments by Mr. Liew.

“1. Capital Power Corporation’s (TSX:CPX)

mission is to provide responsible energy to the world. The $4.7 billion growth-oriented company is well-positioned to support the low-carbon energy system. Its thermal and renewable assets have a combined generating capacity of around 7,500 MW.

On March 13, 2023, Ethisphere named the Edmonton-based power producer one of the World’s Most Ethical Companies for the fifth straight year…

In the first half of 2023, revenue and net income rose 76.9% and 88.7% year over year respectively to $2.1 billion and $370 million. Capital Power has raised dividends for 10 consecutive years and provided dividend growth guidance of 6% annually through 2025. Capital Power pays a hefty 6.12% dividend.

2. Magna International Inc. (TSX:MG)

is at the front and centre in the automotive industry’s drive to deliver more electric vehicles (EVs). The Canadian auto parts maker raised its sales forecast for fiscal 2025 because of the sustained, if not increasing, demand for parts, sensors, and electrified powertrain systems.

The $22.8 billion company’s primary goal is to create a better world of mobility and achieve net-zero by 2050. According to its CEO, Swamy Kotagiri, Magna can achieve the target by addressing the emissions in their manufacturing facilities and the entire supply chain…

Magna will use 100% renewable electricity in Europe and globally by 2025 and 2030, respectively…

In the first half of 2023, Magna’s sales rose 14% year over year to US$21.7 billion, while income jumped 128% to US$548 million… Magna also pays a decent 3.06% dividend.” End quotes.

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3) Top Lithium and Hydrogen Stocks

Now this next article talks about the opportunities in the hydrogen industry. It’s titled These 2 Dividend Stocks Are Investing in This Niche Industry. Should You Do the Same? It’s by James Brumley and found on fool.com. Now here are some quotes from Mr. Brumley.

“Market veterans will likely recall that hydrogen fuel cell stocks like Plug Power (PLUG) and Ballard Power Systems (BLDP) were all the rage at one time. This alternative energy was going to change the world, after all.

And then, nothing happened. As it turns out, the world wasn't quite ready for fuel cells. This industry's stocks have mostly struggled for the past couple of decades.

You might want to put these tickers back on your radar, though. A couple of major oil companies recently made investments in hydrogen-based power solutions, thinking the movement will eventually displace the oil and gas business…

Chevron (CVX) recently acquired a majority stake in a young company called ACES (Advanced Clean Energy Storage) Delta, while BP (BP) just led a wave of funding for Advanced Ionics, which develops energy-efficient electrolyzers that ultimately generate hydrogen, which can then be converted into electricity…

Carmakers are on board, too, and have been for a while. They're ramping up development, and Toyota (TM) is leading the way. With its hydrogen engine technology now well refined, the company hopes to sell 200,000 such vehicles by 2030. If the concept proves successful, look for other automakers to augment their current EVs with yet another alternative to carbon-fuel cars.

Pragma Market Research estimates the world's hydrogen-powered vehicle market will swell from last year's $1 billion to more than $43 billion by 2030…

One hydrogen fuel cell stock to buy now

So if hydrogen fuel cells and hydrogen power in general are finally moving into the mainstream, which of the related stocks are worth owning? The aforementioned Ballard Power Systems and Plug Power are two tickers at least worth adding to your long-term watch list.

Anyone interested in jumping into the hydrogen power movement at its current stage, however, might do best with…

Bloom Energy (BE)

It's not one of the more familiar names in the business, although it arguably should be. It's a $3.5 billion organization, and while not currently profitable, it's nearing that point. In fact, the analyst community is calling for a swing to a per-share profit of $0.39 on revenue growth of 30%. Then things are projected to really start to take off…

Bloom's systems are also readily scalable, meaning their users can fine-tune the amount of power they're producing, and then add or subtract capacity as needed. Its customers include Honda Motor (HMC), Alphabet's Google (GOOG), Walmart (WMT), and IBM (IBM).

The advent of artificial intelligence and the giant data centers it requires is proving a particular boon for Bloom. Although most of its customers only need these fuel cells for backup power now, as hydrogen production initiatives like BP's Advanced Ionics and Chevron's ACES Delta gain traction, don't be surprised to see hydrogen fuel cells evolve into a primary power source…

The only catch with Bloom or its rivals? Buckle up for plenty of continued volatility, and be prepared to hang on to any of these stocks for a while. Hydrogen power is here to stay, but it's hardly on a reliably firm footing yet.” End quotes.

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7 Best Socially Responsible Funds

Now our last article brings us back to familiar territory. It’s titled 7 Best Socially Responsible Funds. It’s by Jeff Reeves and found on money.usnews.com. Here is a quote from Mr. Reeves and his picks.

“There are no easy answers when it comes to how to invest in a world like this. But thankfully, there are a group of socially responsible funds out there that try to focus your cash behind some of the better companies and leave out some of the bad actors. It's not perfect, of course, and the goal of most investors remains to make money and not just feel good about their portfolio.

That said, the following investments are well-established and diversified ways to invest with environmental, social and governance priorities in mind – or ESG for short.

FUND ASSETS EXPENSE RATIO iShares ESG Aware MSCI USA ETF (ticker: ESGU) $12.8 billion 0.15% Vanguard ESG U.S. Stock ETF (ESGV) $6.8 billion 0.09% Nuveen ESG Large-Cap Growth ETF (NULG) $1.3 billion 0.26% Nuveen ESG Large-Cap Value ETF (NULV) $1.6 billion 0.26% iShares ESG Aware MSCI EAFE ETF (ESGD) $7.3 billion 0.20% iShares Global Clean Energy ETF (ICLN) $3.5 billion 0.41% Parnassus Core Equity Fund (PRBLX) $27.4 billion 0.82%”

End quotes

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One Other Honorable Mention

Title: Solar Power Stocks: The Winners and Losers of 2023 So Far on barrons.com. By Avi Salzman.

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Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast titled: “Top Lithium and Hydrogen Stocks.”

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Bye for now.

© 2023 Ron Robins, Investing for the Soul