Lithium Americas appears to be a company with strong liquidity, but still without sustainable operating profitability. Cash on the balance sheet is high and has increased significantly, and the current ratio of 7.36 is materially above the industry median, which reduces the risk of a short-term liquidity shortfall. At the same time, the quick ratio is zero, while long-term debt and total liabilities have increased rapidly, so the balance sheet cannot be called risk-free. P/B at 2.91 is above the industry median, and this looks stretched given that ROE, ROA, and ROI remain at zero. P/E and P/FCF formally look low, but with a zero/weak operating base such multiples are of limited use in valuation and do not provide a full signal of undervaluation. Margins remain weak: operating margin is deeply negative, gross margin is also negative, and net profit margin does not show a stable positive profile. EPS and forward EPS are available, but they are below industry benchmarks, indicating a weak ability of the business to generate earnings per share. On the other hand, TTM net income is positive and significantly better than the industry median, while equity and assets have increased notably, which supports the long-term investment case. However, asset growth was accompanied by debt and liability growth, so part of the improvement appears to be the result of balance sheet expansion rather than proven operating efficiency. For an investor, this means the company has financial resources and an option on future growth, but the current valuation should remain cautious due to weak return on capital and high dependence on project execution. In this setup, the target forecast should reasonably be lowered slightly, as the balance sheet is stronger than the operating profile, but the risk premium remains high.

Lithium Americas Corp.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, незначительно вырос. Рынок не поддерживает быков.

Strong index, slightly up. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Strong liquidity and balance sheet growth support the story, but weak profitability, negative margins, and rising debt limit valuation potential.

Key Points
The Trump Administration has already taken stakes in key U.S. companies.
Investors should be prepared for more direct government involvement.
The Trump Administration has not been shy about taking ownership stakes in what it views as critical suppliers of goods and services key to U.S. interests.
In recent years, the U.S. government has taken interests in semiconductor giant Intel Corp. (NASDAQ: INTC), rare-earth miner MP Materials (NYSE: MP), and lithium producer Lithium Americas Corp. (NYSE: LAC).
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"The U.S. government has negotiated stakes in dozens of companies," reports CNBC. "Some U.S. ownership stakes have been opportunistic, while others have been a part of a broader economic strategy."
Now, there's a rising belief that the U.S. government will take ownership stakes in key artificial intelligence companies. Last month, Senator Bernie Sanders wrote an opinion piece for The New York Times suggesting that citizens consider nationalizing certain powerful companies that control critical AI technologies.
"Artificial intelligence will almost certainly be the most transformational technology in the history of the world," Sanders wrote. "The question, then, is not whether A.I. will change the world. It will. The question is: Who will own and control that future? Who will benefit from it, and who will be hurt by it?"
Sanders's solution is to establish a sovereign wealth fund that can facilitate such direct stakes. AI investors should take note.
"I will soon be introducing the American A.I. Sovereign Wealth Fund Act," Sanders revealed. "This legislation would give the public a direct ownership stake in the largest A.I. companies in our country. How? It would create a sovereign wealth fund through a one-time 50 percent tax -- not on the profits of OpenAI, Anthropic, xAI and other companies, but paid with something far more valuable than that: the stock."
Sanders specifically lists xAI -- the AI division of Space Exploration Technologies (NASDAQ: SPCX) -- as a potential target of partial nationalization. How seriously should investors be taking this? Betting markets offer some insight into what might happen next.
Nationalize SpaceX? Here's what betting markets are predicting
Previous to SpaceX's historic IPO, betting markets were surprisingly bullish on the U.S. government nationalizing the company. In August of 2025, for example, certain betting markets had odds of the space company being nationalized by January of 2027 at around 11%, though limited trading volumes make this somewhat suspect.
As the year has rolled on, however, the odds of SpaceX being nationalized by the start of next year have consistently fallen. Current odds hover at roughly 4%. Considering the track record for things like this in prediction markets, it's fair to say that these are just guesses.
Of course, the government could always begin nationalization -- or at least the process of taking a direct stake -- after January of 2027. We just don't have betting markets for predicting such a situation. But if recent history is any indication, investors should not be surprised to see governments more directly involved in the AI sector's evolution.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and MP Materials. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Trump Nationalize SpaceX? Here's What Betting Markets Are Predicting Post-IPO.

An updated edition of the April 22, 2026, article.
The global automotive industry is undergoing one of the biggest transformations in its history, fueled by the rapid adoption of electric vehicles (EVs) and advances in autonomous vehicle (AV) driving technology. As battery technology improves, driving ranges increase and charging networks become more widespread, EVs are becoming a practical choice for a growing number of consumers. At the same time, high fuel prices amid the Middle East conflict are strengthening the economic case for electric cars.
For much of the past decade, Tesla TSLA was viewed as the undisputed leader in the EV market. However, the competitive landscape has changed significantly. Chinese automakers, led by BYD, have emerged as formidable competitors, while established global automakers are investing billions of dollars to accelerate their own electrification strategies. Meanwhile, a wave of new EV-focused companies is entering the market, intensifying competition and giving consumers more choices than ever before.
The shift toward electric mobility continues to gain momentum globally. Per International Energy Agency, EV sales rose 20% year over year to surpass 20 million units in 2025, accounting for roughly one in every four new vehicles sold worldwide. Global EV sales are projected to reach 23 million units in 2026, representing approximately 28% of all new vehicle sales. Europe is expected to be one of the fastest-growing regions, where nearly one-third of new cars sold could be electric by 2026. China, already the world's largest EV market, is also expected to see continued growth, with electric vehicles approaching 60% of total vehicle sales.
Beyond electrification, autonomous driving is emerging as the industry's next major growth opportunity. Advances in artificial intelligence, sensors, cameras, and vehicle connectivity are steadily improving the capabilities of self-driving systems. The global autonomous vehicle market, valued at $3.36 trillion in 2025, is expected to reach $4.44 trillion in 2026 and $41.75 trillion by 2034, at a compound annual growth rate of 32.3% during 2026-2034, according to Fortune Business Insights. Companies like Alphabet’s GOOGL Waymo and Baidu BIDU are key players in this space.
For investors, EVs and AVs represent a strong long-term opportunity. They combine growth, innovation and rising demand. Our Electric Vehicles & Autonomous Driving Screen highlights companies positioned to benefit from these trends, including NIO Inc. NIO, WeRide Inc. WRD, Lithium Americas Corp. LAC and ChargePoint Holdings, Inc. CHPT.
Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
4 Stocks to Buy
NIO: The companyappears to be entering a more promising phase of its growth story, supported by accelerating vehicle deliveries, a broader product portfolio and improving operational discipline. The Chinese EV maker has regained momentum in recent quarters as demand for its vehicles strengthens and newer models gain traction in the market.
A key driver of this growth is NIO's expanding lineup. At the premium end, the recently launched ES9 is expected to further strengthen NIO's position. The model builds on the success of ES8, which has consistently been one of the best-selling vehicles in China's high-end automotive segment. The company’s sub-brands, Onvo and Firefly, are helping it target different customer segments and price points, broadening its addressable market.
Beyond top-line growth, NIO is becoming a more efficient business. Management has been implementing a more decentralized operating structure aimed at improving cost controls and capital allocation. These efforts are already showing up in improving vehicle margins. More importantly, the company reported its first-ever quarterly profit in the fourth quarter of 2025, a milestone that suggests its long-standing path toward profitability is finally becoming more visible.
NIO's battery-swapping ecosystem remains one of its biggest competitive advantages. With nearly 4,000 battery swap stations and an extensive charging network, the company offers a level of convenience that few rivals can match. NIO is also working to monetize its advanced driver assistance technologies through subscription-based services. If successful, this could create a recurring, higher-margin revenue stream and reduce the company's dependence on vehicle sales alone, providing another avenue for long-term growth.NIO currently carries a Zacks Rank #2 (Buy).
WeRide: It is emerging as one of the most advanced and globally diversified players in the autonomous driving industry. WeRide has already deployed autonomous vehicles in more than 40 cities across 12 countries, giving it an early lead in commercial operations. Through its WeRide One system, the company offers solutions ranging from Level 2 to Level 4 autonomy, serving mobility, public transportation, logistics and sanitation markets. This diversified approach allows WeRide to participate in multiple growth opportunities as autonomous technology gains wider adoption.
The company is also making steady progress in commercializing its technology. In China, WeRide operates Level 4 robotaxis in Shanghai through partnerships with Chery Group and Jinjiang Taxi, connecting major transportation hubs and popular destinations. Internationally, its Robobus service is already operating in locations such as Singapore, Paris and Riyadh, demonstrating the growing real-world use of autonomous transportation for last-mile mobility.
What sets WeRide apart is the breadth of its global footprint. The company is the only autonomous driving technology provider with permits across eight markets, including China, the United States and several countries in Europe and the Middle East. It continues to expand its European presence through projects in France, Switzerland, Belgium, Spain and Slovakia. Notably, its partnership with Uber to launch Spain's first commercial robotaxi service later this year marks another important step toward broader commercialization.
As AVs move closer to mainstream adoption, WeRide's combination of early-mover advantage, regulatory approvals and expanding commercial deployments positions it to benefit from one of the most significant technological shifts reshaping the transportation industry. WRD currently carries a Zacks Rank #2.
Lithium Americas: The company offers investors a way to gain exposure to one of the most important materials underpinning the future of EVs. As EV adoption continues to grow, demand for lithium—which is a key component of batteries— is expected to rise steadily over the coming years.
At the center of Lithium Americas' growth story is the Thacker Pass project in Nevada, which hosts the largest known lithium resource in the United States. The project is strategically important because it can help reduce the country's reliance on imported lithium while supporting the expansion of domestic battery manufacturing. Once fully operational, Thacker Pass is expected to produce up to 40,000 tons of lithium carbonate annually, enough to supply batteries for roughly 800,000 electric vehicles.
The project is advancing steadily toward production. Phase 1 remains on track, with mechanical completion of the processing plant expected by late 2027 and commercial ramp-up planned through 2028. Importantly, the project has secured substantial financial and strategic support. A $2.23 billion loan from the U.S. Department of Energy provides funding visibility. General Motors has committed to offtake agreements covering up to 100% of Phase 1 production and a significant portion of future Phase 2 output.
The scale of Thacker Pass is particularly noteworthy. Phase 1 alone is expected to expand current U.S. lithium production capacity by roughly seven times, highlighting the project's potential impact on the domestic supply chain. Lithium Americas’ large-scale resource base, government backing and clear production roadmap position the company to benefit from rising demand for battery materials in the years ahead. LAC currently carries a Zacks Rank #2.
ChargePoint: While much of the attention in the EV industry is focused on vehicle manufacturers, ChargePoint is building the infrastructure that makes widespread EV adoption possible. The company has built one of the largest EV charging ecosystems in the world, connecting drivers to more than 1.4 million public and private charging ports globally. Its managed network includes roughly 400,000 charging ports, including more than 41,000 DC fast chargers, with a growing presence across Europe.
ChargePoint continues to strengthen its competitive position through innovation and strategic partnerships. The company recently introduced Express Solo, a high-powered charging solution capable of delivering up to 600 kW to a single vehicle, helping address consumer demand for faster charging. It is also expanding into new use cases through partnerships such as its agreement with OBE Power to deploy approximately 2,500 charging ports at multifamily residential properties. In addition, ChargePoint secured one of its largest transit fleet orders to date, supplying charging solutions for Santa Monica's Big Blue Bus electrification program.
Beyond expanding its footprint, ChargePoint is increasingly focused on improving the economics of its business. Rising platform engagement is helping drive monetization opportunities, while stronger cost controls and better supply-chain execution are improving network reliability and deployment efficiency.
As EV adoption accelerates globally, ChargePoint's extensive charging network, technology leadership and growing recurring revenue opportunities position it to benefit from the long-term expansion of the electric mobility ecosystem. CHPT currently carries a Zacks Rank #2.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stocks Powering the Future of Electric and Self-Driving Vehicles

In trading on Thursday, the Invesco Semiconductors ETF is outperforming other ETFs, up about 3.2% on the day. Components of that ETF showing particular strength include shares of Texas Instruments , up about 18.4% and shares of ON Semiconductor, up about 10.5% on the day.
And underperforming other ETFs today is the VanEck Rare Earth/Strategic Metals ETF, off about 4.1% in Thursday afternoon trading. Among components of that ETF with the weakest showing on Thursday were shares of MP Materials, lower by about 4.7%, and shares of Lithium Americas, lower by about 4.3% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday's ETF Movers: PSI, REMX

The NASDAQ 100 Pre-Market Indicator is up 102.62 to 25,079.66. The total Pre-Market volume is currently 159,892,801 shares traded.
The following are the most active stocks for the pre-market session:
Circle Internet Group, Inc. (CRCL) is +11.24 at $72.61, with 4,323,122 shares traded. CRCL's current last sale is 74.86% of the target price of $97.
Novo Nordisk A/S (NVO) is -0.79 at $37.80, with 3,182,829 shares traded., following a 52-week high recorded in prior regular session.
Joby Aviation, Inc. (JOBY) is +0.5903 at $10.31, with 2,096,957 shares traded. JOBY's current last sale is 103.1% of the target price of $10.
Lithium Americas Corp. (LAC) is +0.3828 at $5.42, with 888,465 shares traded. LAC's current last sale is 83.43% of the target price of $6.5.
LATAM Airlines Group S.A. (LTM) is unchanged at $58.01, with 871,688 shares traded. As reported by Zacks, the current mean recommendation for LTM is in the "buy range".
Southwest Airlines Company (LUV) is +0.25 at $50.89, with 725,737 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2026. The consensus EPS forecast is $0.51. LUV's current last sale is 94.24% of the target price of $54.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Feb 25, 2026 : CRCL, NVO, JOBY, LAC, LTM, LUV

The NASDAQ 100 Pre-Market Indicator is down -56.47 to 25,549. The total Pre-Market volume is currently 123,465,114 shares traded.
The following are the most active stocks for the pre-market session:
Arrive AI Inc. (ARAI) is +0.4595 at $3.05, with 20,428,083 shares traded. As reported by Zacks, the current mean recommendation for ARAI is in the "strong buy range".
USA Rare Earth, Inc. (USAR) is +4.91 at $29.68, with 17,703,960 shares traded. As reported by Zacks, the current mean recommendation for USAR is in the "buy range".
Leverage Shares 2X Long CRWV Daily ETF (CRWG) is +0.82 at $5.20, with 4,705,652 shares traded. This represents a 114.88% increase from its 52 Week Low.
Direxion Daily TSLA Bull 2X Shares (TSLL) is -0.32 at $18.40, with 3,870,250 shares traded. This represents a 192.53% increase from its 52 Week Low.
Namib Minerals (NAMM) is +0.74 at $3.84, with 3,703,847 shares traded. NAMM's current last sale is 40.42% of the target price of $9.5.
ProShares UltraPro QQQ (TQQQ) is -0.27 at $54.11, with 3,499,317 shares traded. This represents a 209.2% increase from its 52 Week Low.
IonQ, Inc. (IONQ) is +1.25 at $48.50, with 1,912,886 shares traded. As reported by Zacks, the current mean recommendation for IONQ is in the "buy range".
Lithium Americas Corp. (LAC) is +0.3654 at $6.81, with 1,406,154 shares traded. LAC's current last sale is 97.22% of the target price of $7.
Redwire Corporation (RDW) is +0.21 at $12.73, with 1,195,620 shares traded. As reported by Zacks, the current mean recommendation for RDW is in the "buy range".
First Majestic Silver Corp. (AG) is +1.8108 at $27.25, with 1,186,287 shares traded., following a 52-week high recorded in prior regular session.
Hecla Mining Company (HL) is +1.99 at $33.80, with 982,657 shares traded., following a 52-week high recorded in prior regular session.
NIO Inc. (NIO) is -0.05 at $4.59, with 833,078 shares traded. NIO's current last sale is 70.08% of the target price of $6.55.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Jan 26, 2026 : ARAI, USAR, CRWG, TSLL, NAMM, TQQQ, IONQ, LAC, RDW, AG, HL, NIO

In this video, Motley Fool contributors Jason Hall and Tyler Crowe break down what's happening with the lithium industry and what that means for Albemarle (NYSE: ALB), SQM (NYSE: SQM), and Lithium Americas (NYSE: LAC).
*Stock prices used were from the afternoon of Jan. 22, 2026. The video was published on Jan 23, 2026.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Should you buy stock in Albemarle right now?
Before you buy stock in Albemarle, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Albemarle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $450,525!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,107!*
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*Stock Advisor returns as of January 23, 2026.
Jason Hall has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is the Lithium Winter Finally Over? The Bull and Bear Case For Lithium Stocks

The NASDAQ 100 Pre-Market Indicator is down -42.02 to 25,476.33. The total Pre-Market volume is currently 104,471,760 shares traded.
The following are the most active stocks for the pre-market session:
Redwire Corporation (RDW) is +0.9379 at $12.92, with 1,948,874 shares traded. As reported by Zacks, the current mean recommendation for RDW is in the "buy range".
Novo Nordisk A/S (NVO) is +1.63 at $63.86, with 1,263,442 shares traded. NVO's current last sale is 118.26% of the target price of $54.
Lithium Americas Corp. (LAC) is +0.2302 at $6.36, with 762,450 shares traded. LAC's current last sale is 90.86% of the target price of $7.
Coeur Mining, Inc. (CDE) is +0.07 at $25.84, with 760,539 shares traded., following a 52-week high recorded in prior regular session.
Alibaba Group Holding Limited (BABA) is -1.78 at $175.40, with 736,891 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
First Majestic Silver Corp. (AG) is +0.68 at $24.90, with 655,846 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Jan 23, 2026 : RDW, NVO, LAC, CDE, BABA, AG

The NASDAQ 100 Pre-Market Indicator is up 55.42 to 25,843.08. The total Pre-Market volume is currently 70,730,116 shares traded.
The following are the most active stocks for the pre-market session:
Advanced Micro Devices, Inc. (AMD) is +5.3288 at $213.02, with 3,919,014 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
Intel Corporation (INTC) is +1.58 at $45.64, with 3,829,253 shares traded. INTC's current last sale is 115.54% of the target price of $39.5.
ProShares UltraPro QQQ (TQQQ) is -0.26 at $55.63, with 2,889,196 shares traded. This represents a 217.89% increase from its 52 Week Low.
Apple Inc. (AAPL) is -1.16 at $259.09, with 2,592,034 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Direxion Daily TSLA Bull 2X Shares (TSLL) is -0.0395 at $18.85, with 2,547,912 shares traded. This represents a 199.69% increase from its 52 Week Low.
Rezolve AI PLC (RZLV) is +0.2185 at $4.23, with 1,837,109 shares traded. As reported by Zacks, the current mean recommendation for RZLV is in the "buy range".
Delta Air Lines, Inc. (DAL) is -2.6265 at $68.40, with 940,206 shares traded. As reported by Zacks, the current mean recommendation for DAL is in the "buy range".
NuScale Power Corporation (SMR) is +0.27 at $19.99, with 730,749 shares traded. SMR's current last sale is 66.63% of the target price of $30.
NIO Inc. (NIO) is -0.01 at $4.84, with 679,128 shares traded. NIO's current last sale is 75.63% of the target price of $6.4.
Alibaba Group Holding Limited (BABA) is -2.31 at $164.00, with 562,697 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Lithium Americas Corp. (LAC) is +0.2082 at $5.97, with 481,024 shares traded. LAC's current last sale is 85.26% of the target price of $7.
First Majestic Silver Corp. (AG) is +0.43 at $20.65, with 473,962 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Jan 13, 2026 : AMD, INTC, TQQQ, AAPL, TSLL, RZLV, DAL, SMR, NIO, BABA, LAC, AG

Beijing has announced plans to roll back export VAT rebates on lithium-ion batteries and key battery materials. The VAT export rebates will drop to 6% from 9% in April 2026 and eventually be eliminated entirely by Jan. 1, 2027.
The announcement has already lifted lithium prices as markets anticipate what comes next. Lithium carbonate prices in China surged to about 156,060 yuan ($21,650) per metric ton yesterday, the highest level since late 2023, per Reuters as cited by Asia Financial.
Investors expect Chinese manufacturers to speed up exports before rebates disappear, which could lift near-term battery production and lithium demand. That expectation is reshaping sentiment around the lithium industry and making investors rethink which companies are positioned to benefit and which ones may face pressure.
Likely Winners
In the short term, Chinese battery giants like CATL and BYD are expected to benefit from a potential acceleration in exports, as higher production volumes could improve near-term revenues before rebates disappear. There’s also a silver lining for non- Chinese battery makers. South Korean and Japanese battery manufacturers have long argued that Chinese subsidies distort competition. With rebates rolling off, the playing field is set to become more balanced, allowing these suppliers to potentially regain share in the U.S. and European markets.
Meanwhile, lithium producers like Albemarle ALB, Lithium Americas LAC and Rio Tinto RIO stand to gain as China’s VAT rollback is expected to tighten global battery economics and support firmer lithium price expectations. Stronger near-term battery output could boost lithium demand sentiment, while reduced subsidies over time make non- Chinese lithium supply more strategically valuable, improving the competitive positioning of these producers in the global supply chain.
Albemarle remains one of the world’s leading lithium suppliers and is actively expanding its lithium conversion capacity and improving operational efficiency. Ongoing productivity initiatives and ramp-ups across its asset base support a stronger long-term growth profile tied to battery-grade lithium demand.
Lithium Americas offers a strategic U.S. supply story through its Thacker Pass project in Nevada, which holds the largest known lithium resource in the United States. Once developed, the project will produce up to 40,000 tons of lithium carbonate per year, enough for roughly 800,000 electric vehicles. If fully realized, this output could make the United States the world’s second-largest lithium producer.
Rio Tinto is making a serious push into lithium, aiming to become one of the world’s major producers. Last year, it acquired Arcadium Lithium, giving it access to one of the largest lithium resource bases globally. With Arcadium’s high-quality assets and broad product portfolio, Rio Tinto plans to grow capacity at its Tier 1 lithium operations to more than 200,000 tons of lithium carbonate equivalent per year by 2028.
While LAC carries a Zacks Rank #3 (Hold), RIO and ALB currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Likely Losers
While miners and large battery producers are positioned to benefit, EV makers reliant on Chinese batteries could face rising costs and margin pressure. Companies like Tesla TSLA and Rivian Automotive RIVN may experience higher manufacturing costs as Chinese export pricing rises.
For Tesla, this would come at a time when the company is already navigating slower EV demand growth, aggressive price competition, and margin compression. While Tesla has strong negotiating leverage and innovation capabilities, this policy shift is not supportive of the cost structure in the near-to-medium term.
Rivian is even more sensitive to battery cost inflation than Tesla. The company is still scaling, working toward profitability, and managing capital very tightly. If battery inputs become more expensive, Rivian has fewer tools to absorb the pressure. It lacks Tesla’s scale, vertical integration and pricing power, meaning higher battery costs can slow its profitability trajectory and complicate execution.
Tesla and Rivian carry a Zacks Rank #4 (Sell) each.
The Road Ahead
In the near term, China’s policy shift is likely to create volatility. A rush to export before rebates disappear could temporarily inflate shipments and demand, support lithium prices and benefit miners — while adding margin pressure for EV manufacturers that rely on low-cost Chinese batteries.
However, once the new rebate structure takes effect, the market may see a temporary slowdown in exports as front-loaded inventory is absorbed, leading to uneven supply and price swings.
Beyond this short-term disruption, reduced subsidies could ultimately push the industry toward more rational pricing and elevate the strategic importance of non-Chinese lithium supply. For U.S. investors, the focus should be on lithium producers gaining improved sentiment and strategic relevance.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

China to Cut VAT Rebates on Lithium Batteries: Who Wins & Who Loses?

After a tough 2025, the global lithium market is gearing up for a new growth cycle. Prices fell about 90% by mid-year from their 2022 peak levels as electric vehicle (EV) demand slowed and supply built up, but 2026 looks very different.
EVs will still drive demand, but new sources are joining the mix. Strong growth in solar power installations across Europe, the United States and the Asia-Pacific region is boosting the use of battery energy storage systems (BESS), which rely on lithium to store electricity from renewable energy.
Artificial intelligence is also creating a new need for lithium. Massive AI data centers use as much electricity as small cities, and many are now adding lithium-ion batteries on-site to handle peak energy use and reduce pressure on local grids. Autonomous machines and humanoid robots could become another steady source of lithium demand over the next decade.
Governments are taking notice, too. Many now treat lithium as strategic, like energy grids or defense equipment. This means governments may support production and investments, adding stability to the market.
Per Fortune Business Insights, the global lithium market is expected to expand from $13.9 billion in 2024 to $55.5 billion by 2032, implying a CAGR of nearly 19%.
While lithium prices have been under pressure, sentiment is turning. Lithium carbonate prices in China have rallied more than 20% so far this month. Major producer Ganfeng Lithium expects global lithium demand to grow 30-40% in 2026 and has flagged high price targets of 150,000-200,000 RMB/ton as the market moves back toward balance.
Against this backdrop, a few lithium stocks — Rio Tinto plc RIO, Lithium Americas Corp. LAC, Albemarle Corporation ALB and Sociedad Quimica y Minera de Chile S.A. SQM — are worth keeping on your watchlist.
Rio Tinto
Rio Tinto is making a serious push into lithium, aiming to become one of the world’s major producers. Earlier this year, the company completed its $6.7 billion acquisition of Arcadium Lithium, giving it access to one of the largest lithium resource bases globally. With Arcadium’s high-quality assets and broad product portfolio, Rio Tinto plans to grow capacity at its Tier 1 lithium operations to more than 200,000 tons of lithium carbonate equivalent per year by 2028.
Rio Tinto is also expanding its lithium footprint in South America. It acquired the Rincon project in Argentina in 2022 and made a $2.5 billion investment in the project in 2024. Rincon is expected to produce up to 60,000 tons of battery-grade lithium carbonate annually, with first production targeted for 2028 and a gradual ramp-up to full capacity.
In Chile, Rio Tinto has formed joint ventures with Codelco and ENAMI this year to develop high-grade lithium projects, strengthening its long-term supply pipeline.
For investors, Rio Tinto offers diversified exposure to lithium alongside its established global mining business. The stock sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for RIO’s next year EPS implies a year-over-year uptick of 11%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lithium Americas
Lithium Americas is making a bold play on the U.S. lithium market with its Thacker Pass project in Nevada, home to the largest lithium resource in the country. This project plays a critical role in securing domestic lithium supply. Thacker Pass is expected to produce up to 40,000 tons of lithium carbonate per year, enough for roughly 800,000 electric vehicles. If fully realized, this output could push the United States to the world’s second-largest lithium producer. Phase 1 of the project is on track, with mechanical construction of the processing plant expected to finish by late 2027.
The project has also attracted strong government backing. In October, the U.S. Department of Energy (“DOE”) acquired a 5% stake in both Lithium Americas and the Thacker Pass joint venture. Lithium Americas also drew the first $435 million from a larger $2.23 billion DOE loan, fueling construction and securing funding for the next stages.
For investors looking at the lithium rebound, LAC stands out as a key domestic play. Its combination of scale, government support and a clear production roadmap positions it well to benefit from rising lithium demand in the coming years.
LAC carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for LAC’s next year’s bottom line suggests a year-over-year improvement of 42%.
Albermarle
Albemarle is one of the world’s top lithium producers, well-positioned to benefit from long-term growth in battery-grade lithium. The company is actively boosting its global lithium conversion capacity through strategic projects, focusing on high-return investments that improve productivity and efficiency. Production milestones are supporting growth. In Chile, the Salar yield improvement project has reached a 50% operating rate, while ramp-up at the Meishan lithium conversion facility in China is ahead of schedule. Record output from integrated conversion plants contributed to higher sales volumes in Albemarle’s Energy Storage unit in the third quarter of 2025.
Albemarle is also streamlining operations, cutting costs and optimizing its conversion network to maintain a strong competitive edge. In 2025, these initiatives are expected to deliver around $450 million in cost and productivity gains, exceeding the initial target of $300-400 million.
With robust customer demand, expanded capacity and efficiency improvements, ALB is positioned to capture rising lithium demand globally. Its scale, diversified operations and focus on cost management make it a key player for investors looking to ride on the lithium rebound in 2026.
ALB carries a Zacks Rank #3. The Zacks Consensus Estimate for ALB’s 2026 EPS implies a year-over-year jump of 217%.
Sociedad Quimica
Sociedad Química is one of the noted producers of lithium, supplying battery and energy storage markets worldwide. Its scale and global footprint make it a key player as lithium demand rebounds.
SQM has built a highly diversified lithium platform across Chile, Australia and China. In Chile, the company is expanding operations at the Salar de Atacama, targeting lithium carbonate production of 240,000 metric tons by 2026. It is also ramping up lithium hydroxide capacity to 100,000 metric tons by the end of 2025.
In Australia, SQM is advancing the Mt. Holland project, a 50,000-metric-ton lithium hydroxide operation developed through a joint venture, while pursuing additional exploration projects. In China, the company operates a lithium hydroxide refinery and tolling facility with 40,000 metric tons of capacity, strengthening its downstream reach and global supply chain.
SQM expects long-term lithium demand to outpace supply and has already completed major capacity upgrades. With these improvements in place, the company believes it can grow market share, especially in supplying lithium for EV batteries.
For investors, SQM offers scale, diversification and strong leverage to a lithium market recovery. The stock carries a Zacks Rank #3. The Zacks Consensus Estimate for SQM’s 2026 EPS indicates a year-over-year surge of 117%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.