LithiumLithium is the lightest and most energy-dense metal known today, making it ideal for high-capacity battery applications in electric vehicles. Piedmont Lithium Ltd. (NASDAQ: PLL)  is an Australian mining company that develops lithium mines and processing facilities in the United States.

Trading at a bargain today, analysts predict a strong upside on this alternative energy stock. An average target price of $19.58 suggests gains for investors who buy now.

Piedmont is not yet profitable but it is well-positioned to capitalize on a growing market for lithium. Demand for this metal is expected to increase at a 21% annual compounded rate until at least 2040. Electric vehicle penetration in the auto market will reach 70% by that time. The Tesla Model 3, is the world’s most popular midsize electric vehicle today. It was also the biggest-selling midsize luxury car in the United States overall during the first half of 2020. All of these factors come together to create an incredible opportunity for Piedmont and its investors.

This pick is highly speculatory, but all the signs point to an explosion in electric vehicle sales and a positive knock-on effect for lithium producers. Investors wanting exposure to the lithium mining market should consider this stock in 2020.

Key Data:

  • 1 Year Price Growth: 25%
  • YTD Price Growth: -7.87%
  • 3 Month Price Growth: 90%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.