Can This Lithium Stock Hit New Highs in 2023?

Lithium Americas (TSX:LAC)(NYSE:LAC) is a Vancouver-based resource company that operates in the United States and Argentina. Shares of this lithium stock have dropped 11% year-over-year as of close on January 30. The stock has jumped 20% so far in 2023.

Emergen Research estimated that the lithium mining market was valued at US$343 million in 2021. The market researcher projects that this market will achieve a compound annual growth rate (CAGR) of 6.0% from 2022 through to 2030. This is a market worth targeting as the electric vehicle (EV) market is set to deliver strong growth over the course of this decade.

This company released its third quarter fiscal 2022 earnings on October 27. Construction is nearing completion at its Cauchari-Olaroz processing plant in Argentina. Meanwhile, the company announced that 100 tonnes of lithium ore were collected at Thacker Pass as of September 2022. Lithium Americas boasts a fantastic balance sheet with $392 million in cash, cash equivalents, and short-term bank deposits. Moreover, it possesses an additional $75 million in available credit.

Canadian investors should be eager to get in on companies that are positioned to capitalize off the EV explosion. Lithium will continue to see a huge increase in demand in the years ahead as drivers switch to electric. That makes Lithium Americas a very worth gamble as we approach the month of February.