Published on 11 Aug 2023 on Insider Monkey via Yahoo Finance
10 Metals Stocks with Insider Buying
In this piece, we will take a look at ten metals stocks with insider buying. If you want to skip out the introduction of the metals industry and insider transactions, then head on over to 5 Metals Stocks with Insider Buying.
The metals industry is one of the most important sectors that you might come across if the world is to shift to using renewable vehicles and power generation at a large scale. This is because of lithium, a material that is primarily used in battery production due to its suitability for battery performance. Australia and Chile have the largest lithium reserves in the world, and the Oceanic nation benefits, particularly from having a large share of global lithium production. Australia accounted for 47% of the global lithium production in 2022, courtesy of the six mining operations located there. Chile and Australia together account for most of the world's lithium output, with the South American country exporting large amounts of lithium to the U.S. as well. For more details, you can check out 10 Most Profitable Lithium Stocks Now and Lithium Reserves by Country: Top 15 Countries.
The surge in demand for lithium that is expected to come into play over the course of the next several years as countries lay down plans to gradually phase out internal combustion vehicles might outstrip the ability of the industry to supply the metal. Estimates from McKinsey show that global lithium demand is expected to rise from 500 thousand metric tons of lithium carbonate equivalent (LCE) in 2021 to as much as five million metric tons by as soon as 2030. To meet this demand, the consulting firm believes that the lithium industry has to use currently nascent technologies such as direct lithium extraction (LTE). The adoption of these technologies and the lithium mining firms' ability to meet demand are also hampered by the years of lead times between the discovery of lithium reserves and production output.