Should you buy battery stocks in 2024?

The International Energy Agency predicts a tenfold increase in battery demand for electric vehicles over the next decade. Battery stocks haven't fared well for much of 2024, but a big rally has put them back in the spotlight. The Global X Lithium & Battery Tech ETF (ticker: LIT) gained more than 20% in September.

Will Lithium prices go up again If EVs increase in demand?

If EVs continue to increase in demand, though, the price of lithium—as well as the prices of stocks for the companies that mine, refine and distribute lithium—could go up again. Investing in lithium stocks is the same as investing in any other kind of stock.

Are Lithium prices finally bottoming out?

Lithium prices may finally be bottoming out. Here's what that means for sector stocks and ETFs. Lithium, a key component in battery manufacturing, should benefit from increased demand for EVs in the fourth quarter of 2024. September's EV global unit sales number rose to 1.7 million, a new high.

What are lithium stocks?

Lithium stocks are commodity stocks that have principal interests in the mining, refining and distribution of lithium. The companies included under the umbrella of lithium stocks may be involved in the production of other metals and minerals, but lithium will be included in their portfolio.

Should you invest in lithium stocks?

Investing in lithium stocks is the same as investing in any other kind of stock. First, you will want to do your proper due diligence to know which stocks you want to own. This can be accomplished with the help of a number of free and/or paid websites where investors can set up screens to help them select stocks.

Are EV batteries a good investment?

The rising demand for EVs will also spark additional traction for lithium. This mineral is a critical component of EV batteries. Lithium also forms the bedrock of many popular devices, such as iPhones and laptops. Investors who are looking for long-term opportunities may want to take a closer look at the battery sector.