The Ukraine crisis is being felt around the world. Not only are we trying to help those suffering immense, tragic losses on an emotional level, but we’re also feeling it in our pockets as well. And it’s why some analysts argue now is the time to start looking at clean energy stocks to make up those losses.
What happened?
The Ukraine crisis has created a slew of sanctions on Russia. This week, the United States joined European countries in banning Russian oil and energy products. Russia, which produces about 11.3 million barrels of oil and gas per year, has yet to respond to this most recent sanction.
This move sent the price of of a barrel of crude oil past US$100 this week, creating an incredibly volatile situation. Analysts continue to weigh in, believing that there could be several dips in the near future. It might seem like oil and gas companies are where investors should look for quick gains, but these analysts disagree. It’s now a volatile situation that simply won’t last. And it’s why clean energy stocks are a simple solution.
Clean energy stocks take over the market
Clean energy stocks saw a massive rebound this week with these sanctions in place due to the Ukraine crisis. It’s never been more clear that the oil and gas market simply isn’t reliable. With Russia at war with Ukraine, European countries that relied heavily on low-cost Russian oil now need a new solution.
That solution has already been in progress for some time: renewable energy. Whether it’s wind, solar, hydro, or nuclear power, each of these areas provides a way for countries to create their own energy source — no more relying on another country to create power. And it’s why clean energy stocks continue to boom in the market.
In particular, this week we saw Ballard Power Systems (TSX:BLDP)(NASDAQ:BLDP) and Lithium Americas (TSX:LAC)(NYSE:LAC) both climb with recent sanctions. So, let’s look at why you might want to consider these clean energy stocks.
Ballard and Lithium Americas
Ballard stock is a strong option among clean energy stocks. Instead of choosing a popular electric vehicle company, Ballard delivers to pretty much everything else. The company creates membrane fuel cell products used for heavy duty vehicles like marine systems, trains, backup power systems, buses, and more. It has operations around the world, and this has proven to expand even further during this need for clean energy stocks.
Meanwhile, Lithium Americas stocks is another strong option. If you’re going to have all these new methods of renewable power, you need a battery source. As lithium is the prime component of creating these batteries, production of lithium will only rise. Now, Lithium Americas has proven to be a leader among clean energy stocks, no matter what kind of renewable source is used.
Foolish takeaway
Honestly, these are the two stocks rising this week, but there are so many other options. For investors wanting in on another strong market that’s only going to get stronger in the next decade, I would highly recommend Ballard and Lithium Americas, among other steady and stable renewable energy stocks on the TSX today.
