Could Lithium Stocks Be a Big Winner in 2023?

When it comes to the future of any stock, follow the money. In the case of lithium stocks, that money goes straight to the White House.

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Lithium could be one of the biggest winners in the next few decades. With the world shifting over to renewable energy production, there is a huge opportunity for those wanting in on the next big thing. But what about in 2023?

Today, we’re going to look at how lithium stocks could perform this year. Further, we’ll look at whether now is the time to get in on the investment.

First, why lithium stocks?

The reason I’m zoning in on lithium stocks is because of the huge future potential. Lithium is used in practically every type of power we consume. It’s in the battery of the computer I’m writing on. The phone I use constantly. Even powering electric cars, solar panels, anything that requires a battery.

What’s more, it’s recyclable. That’s one of the major benefits for those seeking access to a sustainable investment. It’s a sustainable product that can be reused again and again. Not sent into the atmosphere, or thrown in the garbage.

With lithium’s incredibly wide array of uses and potential for expansion into new areas, lithium stocks are certainly some I’d consider no matter what the future holds.

What about in 2023?

Here’s the big question. Should investors get in on lithium stocks in 2023? In short: yes.

I truly believe that this year we will see a major improvement in lithium stocks. Growth should come from several companies expanding, sure. Yet, the biggest reason is those expansions are backed by government support.

Around the world countries are putting their weight into clean energy production. Lithium is a major beneficiary. The United States, in particular, will see even more lithium production as the country looks to expand its electric vehicle production and try to beat out China for the top spot.

In short, you want to follow the money. That money should be followed straight to the White House in most cases. So, in the case of lithium stocks, it’s looking like a great time to invest in 2023.

Which one?

If we’re focusing on America then, I would consider Lithium Americas (TSX:LAC) in 2023. This company is still a bit shaky in share price, even after a judge ruling that the Thacker Pass in Nevada has the greenlight. The point here is that this project, in particular, is backed by the American government, and so it’s pretty much guaranteed to go through.

With that in mind, it’s a great time to consider the stock. Lithium Americas stock is on the pricey side in terms of fundamentals, but shares are still down 12% in the last year, and up 19% since the beginning of 2023. That means you can get a deal, while still enjoying a recovery!

Even if we do see Lithium Americas stock drop again should we enter a recession, I’m of no doubt that long-term holders will be handsomely rewarded. When you have the government on your side, and the future of energy production as well, there really isn’t any going wrong.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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