Lithium stocks are on sale! (Or at least it looks that way.)

Over the past year or so, the price of a kilogram of lithium has plummeted by 85%, from roughly $85 in November 2022 to just $13.77 today. Across the board, lithium stocks have followed suit, with most shares in the sector down 40%, 50%, or more over the past year.

Investors in this sector may be confused, and perhaps even a bit frightened, recognizing that many smaller stocks in this sector -- Sigma Lithium, Piedmont Lithium, and Lithium Americas, to name a few -- seem unable to earn a profit with lithium prices so low. These companies may not survive to see an upturn in prices of the metal, essential for manufacturing rechargeable batteries for electric cars. And even if they will survive, how do you invest in a stock with no earnings -- so no price-to-earnings (P/E) ratio, and therefore no good way to value the stock in the first place?

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Source Fool.com