Citi is bearish on lithium — at least for the near future. That's because China's huge electric vehicle market is showing signs of slowing, the bank said, citing the country's removal of EV subsidies and Tesla's suspension of production at its Shanghai plant. Lithium is a critical component of electric vehicle batteries. On top of that, demand in Europe has been slowing, thanks to high electricity prices and an economic slowdown, the bank added.
But it warned that Livent, being a pure-play lithium producer, is a stock sensitive to changes in the lithium market. "Lithium has the potential for high growth, driven by demand for battery applications. Therefore, changes in the pace of adoption for electric vehicles or electronics, due to energy prices or some other factors, could have significant implications for long-term lithium supply/demand," Citi analysts wrote.
I think Lithium would help the GOP.