The electric vehicle (EV) market has enjoyed substantial growth over the past decade. In the beginning of the 2010s, EVs possessed a miniscule market share. Bloomberg NEF recently projected that plug-in vehicle sales would grow from 6.6 million in 2021 to a whopping 20.6 million in 2025. That, in turn, is fuelling growth in lithium production. Today, I want to focus on a lithium stock that could make investors a fortune in the years ahead: Sigma Lithium (TSXV: SGML). Let’s jump in.
Here’s why investors need to get in on the lithium production space
Investors who are betting on lithium miners should be interested in the trajectory of the EV market. MarketsAndMarkets recently valued the global EV market at US$388 billion in 2023. The same report projected that this market would deliver a compound annual growth rate (CAGR) of 13% from 2023 through to 2030.
Fortune Business Insights valued the global lithium mining market at US$1.66 billion in 2022. Moreover, the market researcher estimated that this market would deliver a CAGR of 7.4%. It expects that market to reach US$3.4 billion by 2030. This should pique investor interest in the lithium sector in the years ahead.
How has this lithium stock performed over the past year?
Shares of this lithium stock have dropped 8.4% month over month as of early afternoon trading on Wednesday, September 6. Sigma Lithium stock has shot up 29% so far in 2023. Meanwhile, its shares have climbed 49% in the year-over-year period. Investors can see more of Sigma Lithium’s recent performance with the interactive price chart below.
Should investors be happy with Sigma Lithium’s recent earnings?
This company released its second quarter (Q2) fiscal 2023 earnings on September 1. Sigma Lithium completed trucking of 15,000 tonnes of Triple Zero Green Lithium and 30,000 tonnes of Triple Zero Green By-Products (“Green By-Products”). The company reaffirmed its outlook of 130,000 tonnes of chemical-grade Triple Zero Green Lithium.
On the financial front, the company successfully closed its first Green ACE Credit Line with Santander Brazil for R$50 million. That is equivalent to US$10 million. In Q2 2023, Sigma Lithium reported that it received $31.8 million in pre-payment for its first shipment of Triple Zero Green Lithium and Green By-Products.
Overall, investors should be excited about Sigma Lithium’s future, as it has production underway. This is key for all lithium miners going forward.
Why I’m buying this lithium stock today
Sigma Lithium is geared up for very strong growth going forward. That should keep investors interested in this lithium stock in September 2023 and beyond. Canadian investors will gain exposure to a lithium company that has achieved production and is on track for continued strong production in the quarters to come. This is a stock I’m looking to stack in the late summer and early fall of 2023.
