As electric vehicles become increasingly popular, the demand for lithium is following suit. Indeed, companies are investing billions of dollars in order to secure the necessary supply to produce EVs. As a result, Chile’s government is looking to capitalize on this trend as it plans to nationalize its lithium industry. Unsurprisingly, the stocks of Chilean lithium miners Sociedad Quimica Y Minera de Chile (NYSE:SQM) and Albemarle (NYSE:ALB) are getting hammered in today’s trading session.
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In a televised statement, Chile’s President, Gabriel Boric, called this “an opportunity for economic growth that will be difficult to beat in the short term.” He also added that the move would allow Chile to distribute the wealth in a “more just way.”
SQM stock got hit the hardest following today’s news, as it’s down over 9% at the time of writing. Currently, both of the aforementioned stocks are rated as Moderate Buys with significant upside potential. However, investors will want to keep an eye open for any changes in analyst opinions.
