This week, shares of lithium manufacturer Livent Corp. (NYSE: LTHM) gained a lot of traction. Because of the excellent market conditions, the firm is rapidly expanding its revenue.
Livent’s revenue grew 56 percent year over year to $143.5 million, with adjusted profits of $0.21 (+950%) above expectations. Revenue increase in the fourth quarter was comparable: + 50%. Lithium demand continues to be high, and Livent Corp. (LTHM) is dedicated to expanding its lithium carbonate and hydroxide production.
In total, there will be three growth phases. By the end of 2023, Phase 2 of the expansion is expected to nearly double lithium carbonate production compared to 2021. By the end of 2030, Phase 3 will be finished, allowing LTHM to produce 100,000 metric tonnes of lithium carbonate.
Livent Corp. (LTHM) has a number of ambitions for the next decade, including expanding existing operations and launching new ones, as well as acquiring shares in lithium mining companies. The corporation is expected to fund a large portion of these activities by issuing shares, putting downward pressure on stock prices.
At the same time, Livent Corp. aspires to become one of the world’s largest lithium producers, with a significant market share. LTHM may become a highly powerful corporation and produce enormous wealth for stockholders since lithium plays such a huge part in the future economy.
The concern for Livent Corp. (LTHM), as well as other lithium providers, is the emergence of novel lithium-free batteries. Such batteries will almost certainly be developed sooner or later, but large manufacturing is unlikely to occur in the next decade. This gives Livent plenty of time to expand and profit from the surge in battery demand.
LTHM has gained 63.11% in the last year, but the stock has lost -6.92 percent in the previous six months. LTHM now has a quarterly performance of 27.53 percent, and it is up 7.57% in the last month. The latest weekly performance is 29.23%.