Nemaska LithiumLithium batteries can be found in consumer products ranging from smartphones to electric razors, all the way up to commercial products like electric vehicles and solar energy storage arrays. To say that Nemaska Lithium is a promising area of investment would be an understatement.

While there’s high potential in the industry, there are still plenty of small and micro-cap stocks that can be picked up for bargain prices. Nemaska Lithium (OTC: NMKEF) is one of them.

Nemaska Lithium is a Canadian mining company that is currently growing with new Lithium extraction and processing facilities.

The company worried investors in February, when it announced a $375 million CAD overrun on its current lithium development project. This sent prices spiraling downwards, leaving stock below $0.20 today. However, the long-term potential of the company is unaffected. It recently received a $600 million CAD equity financing investment from the Pallinghurst Group (a major mining sector investment firm), which will keep it operational as it finalizes construction on its Whabouchi mine and Shawinigan electrochemical processing plant. The company controls over half a million tons of lithium reserves, which is enough to extract and produce $300 million worth of lithium per year for up to three decades.

Lithium demand is expected to increase in the coming years, as there are few viable alternatives that can be used in the production of high efficiency battery cells. There’s risk in this stock but its bargain pricing makes it a worthwhile pick for alternative energy investors.

Key Data:

  • 1 Year Price Growth: -66.62%
  • YTD Price Growth: -60.33%
  • 3 Month Price Growth: -23.98%

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