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Lithium Starts Comeback as Major Battery Metals Stocks Pop on Charts

Lithium stocks could be about to see a huge surge, with major players in Australia and Canada finally seeing life after a year to forget.

Numerous technical charts point to significant breakout potential.

Meanwhile, the scramble for lithium supply continues in earnest – with China looking at shoring up strategic reserves.

China to Invest in Battery Metals Strategic Reserves

There is also speculation China is about to start buying up battery metals in a big way, looking to stock up on supply to ride out higher prices that may come over the next 3-5 years.

In an op-ed in the China Metallurgical News (CMN), officials suggested China could be ready to buy up significant quantities of raw materials for future production.

The suggestion is China may look to take advantage of lower lithium and other battery metals prices, which have cooled significantly in 2023.

There is a clear advantage in doing so and it would be in-line with China’s policy on the acquisition of other raw materials, such as iron ore.

Charts Ready to Pop

A number of major lithium mining companies, particularly those already producing (or about to produce) are seeing excellent setups for investors willing to buy the lows.

Numerous lithium players have seen share prices bounce back as it appears lithium bears may have oversold and over-shorted.

Speculation is rife that China may undertake a huge national buy-up of battery metals, including lithium, cobalt, nickel and other key battery raw materials – similar to the way it soaks up iron ore supply even during weaker economic demand.

Many lithium mining companies have secured long-term contracts to supply and are highly profitable, dividend-paying stocks.

However, investors have ventured elsewhere in 2023, which could present a strong contrarian opportunity for longer-term-minded investors.

We think now is the perfect time to enter as signals begin firing off in various charts being monitored. 

Possible Opportunities 

Opportunities include ASX-listed entities Pilbara Resources (ASX: PLS), lithium specialist chemical company Albemarle Corporation (NYSE:ALB) and various other sector players, including Patriot Battery Metals (ASX: PBT).

See below charts:

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