3 Best Cheap Lithium Stocks to Buy to Benefit From the EV Boom

China recently dropped a bombshell, announcing that it’s planning to ban fuel and diesel cars in the future. China’s minister of industry said that experts have already started to make a timeline of the expected ban. China is following the footsteps of the UK, France, India and several other European countries to put a cap on the carbon emissions. China is already a thriving market for electric car makers. In 2016, about 352,000 new electric vehicles were registered in the country, a lot more than 159,000 cars registered in the US in the same year. Lithium stands at the center of this upcoming boom. Lithium isn’t easy to mine, and experts believe that Lithium will become a scarce commodity in years to come as its demand is expected to skyrocket on the back of the electric cars revolution. In this article we will mention some of the best and cheap lithium stocks to buy in 2017. Investing in lithium is almost guaranteed to return big fat gains as lithium is used in EV batteries. Big car companies will develop an insatiable demand for lithium batteries, which would boost lithium stocks.

Albemarle Corporation (NYSE:ALB)

Albemarle Corporation (NYSE:ALB) is one of the best lithium stocks to buy in 2017. Albemarle is the biggest lithium producers in the world. In the first quarter, the company’s revenue from lithium increased by 58% to reach $216.2 million. Last month, investment firm Oppenheimer started covering Albemarle with an “Outperform” rating and $133 price target. Vertical Research Partners also increased its price target for the stock to $109. The firm said that the company’s lithium sales in the second quarter increased by healthy 56% year over year, which resulted in an improvement of adjusted EBITDA margins.

FMC Corp (NYSE:FMC)

FMC Corp(NYSE:FMC) is a Philadelphia-based chemical company which is swiftly ramping up its lithium production. Last year, FMC said it was planning to triple lithium hydroxide production capacity by 2019. The first phase of the plan has already started. FMC management also said that it was not ruling out the possibility to spin-off FMC’s lithium segment as a separate publicly owned company. BofAMerrill Lynch recently upgraded FMC stock to “Buy” from “Underperform,” increasing the price target to $103.00 from $66. BofA analyst Steve Byrne said that the stock is poised to grow on the back of lithium and Silver growth. The analyst also said in his report that Lithium could reach $5 billion enterprise value.

Arotech Corporation (NASDAQ:ARTX)

Arotech Corporation (NASDAQ:ARTX) is a cheap lithium stock that is currently trading at just over $3. There were several major changes in the company’s management and board. Analysts think that Arotech is off to a fresh start. The company might be acquired by a major aerospace or chemical name in the near future. Arotech’s has two divisions: Battery and Power Systems division. The battery division produces and sells Lithium and Zinc-Air batteries and chargers. With an extremely low price-to-book ratio, the stock is ripe for investment.