Lithium Americas Stock: 1 of the Best Stocks to Buy Right Now

A recent announcement by the Biden administration caused Lithium Americas (TSX:LAC)(NYSE:LAC) stock to climb 7%, but it’s set to climb even further.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 1, 2022 12:45 pm EDT

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It’s never been more clear: clean energy must be the future at this point. It’s no longer an option. With oil and gas prices rising, and an entire country under sanctions with the Russian invasion of Ukraine, crude oil needs to be a thing of the past. And it’s why Lithium Americas (TSX: LAC)(NYSE: LAC) has become the future.

Movements being made

The problem with clean energy companies in the past was that investors were told to be patient. Today, that’s no longer the case, as the expansion of renewable energy continues.

With Russia out of the picture, European countries in particular have been scrambling for power. Therefore, a massive amount of investment is going into creating new clean energy projects so that these countries will no longer have to rely on an outside country for their power source.

But there’s one thing that practically every renewable power project needs: batteries. And that’s exactly where Lithium Americas stock comes in. Lithium is the main product needed to create these batteries. And it’s why the president of the United States is backing its mining.

Biden bringing on more power

Whether it’s electric vehicles, solar power, or hydro plants, each needs batteries to store power. Therefore, President Joe Biden invoked Cold War powers on Thursday to boost the materials needed for batteries.

This does more than just affect the war in Ukraine. This also would bring the U.S. hopefully in direct competition with China, which continues to dominate the lithium market. The Cold War powers could also bring in US$750 million for mining companies under the Defense Production Act. The new deal alone caused Lithium Americas stock to rise 7% on Thursday.

More to come

Lithium Americas stock is a strong company that stands on its own two feet, even without government support such as this. The company continues to expand production in Latin America for more lithium mines as well as in the Nevada Thacker Pass.

During its latest earnings report, Lithium Americas stock announced it had US$511 million in cash and cash equivalents. Earnings came far above estimates, announcing $0.08 earnings per share, above the estimated loss of $0.07 per share.

Now, I’m not saying Lithium Americas stock is a deal today. It continues to trade around its target price. However, long-term Motley Fool investors who want in on the future of clean energy must consider the stock.