Lithium has been gaining a lot of interest from investors in recent times as the world is set to witness higher adoption of electric vehicles in the coming years. Lithium is a major component of electric vehicle batteries and also has uses in many other industries.
The global lithium market size is expected to grow at an 8.1 percent CAGR (compound annual growth rate) between 2021 to 2027, according to the latest research by Valities Reports.
The report adds that the global lithium market size is expected to reach 6187.8 million US dollars by 2027, from the 2020 market size of about 3483.5 million US dollars.
Amid this boom in the electric vehicle space, let’s analyze investment opportunities within the two FTSE-listed lithium stocks, which have given a return of between 75 and 205 percent in the past year:
- Zinnwald Lithium PLC (Color: ZNWD)
Zinnwald Lithium is a development company focused on lithium. It is a component of the FTSE AIM All-Share Index.
The group had recently raised around £5.8m (before expenses) from its retail offering in December 2021. About 13.2m shares were placed with institutional and professional investors.
The retail offering raised around £1.8 million in total revenue, with retail investors subscribing around 11.7 million retail shares.
The fundraising is expected to aid the group’s progress for the Zinnwald Lithium project.
Image source: Refinitiv
The group’s shares closed at GBX 19.00, down 8.43 per cent on January 6, 2022. The market capitalization is £60.88 million to date.
It gave shareholders a 62.53 percent return last year, as of Jan. 6.
Related reading: 4 Stocks of lithium and FTSE batteries to increase the strength of your wallet
- Caudal Minerals plc (LON: code)
Another company included in the FTSE AIM All-Share Index, Kodal Minerals, is a lithium exploration and development company.
In its most recent interim results, the group said it had secured a mining license for the Bocconi lithium project. Also, it reported the final examination results for its Nielle Gold project located in Ivory Coast, where one of its 12 meter junctions was at 3.14 g/ton of gold from the 21 meter drilling hole NLRC038.
Image source: Refinitiv
The group’s shares closed at GBX 0.32, an increase of 3.87 per cent on January 6, 2022. The market capitalization is £49.08 million to date.
It gave shareholders a return of 203.77 percent in one year, as of January 6.