Better Buy Now: Lithium Stocks or EV Charging Stocks?

Global electric car sales more than doubled to 6.6 million in 2021 versus 2020 and represented nearly 9% of the total global car market, according to the International Energy Agency (IEA). Compare that with 2019 when electric cars made up only 2.5% of the global car market, and it becomes evident that demand for electric vehicles (EVs) is growing exponentially.

As the EV industry grows, so should the supply and ancillary side of the equation. Batteries, for example, are the most important component in EVs, which explains why prices of lithium -- the key metal that's used to make EV batteries -- are hitting record highs. At the same time, those batteries and EVs would be rendered useless if there's no robust charging infrastructure to recharge those EV batteries.

Investors looking to play the EV boom, therefore, can not only invest in shares of EV manufacturers, but also in lithium and EV charging stocks. Which among these is a better buy right now, though? Here's a case for both sides and promising stocks within each industry to help you decide.

Source Fool.com