Analyst Note| Seth Goldstein, CFA |
On July 29, lithium producer stocks rallied on the news that the U.S. infrastructure bill was advancing in the Senate. The bill features $7.5 billion of funds that would be used to build 500,000 high powered electric vehicle chargers throughout the country. We had expected this to occur and had already incorporated this into our outlook for EV adoption and subsequently lithium demand, lithium prices, and producer profits. With our outlook unchanged, we maintain our fair value estimates of $145 per share for narrow-moat Albemarle, $88 per share for wide-moat Compass Minerals, $17 per share for narrow-moat Livent, and $58 per share for narrow-moat SQM.