Lithium Stocks Are Jumping as California Says RIP to Gas Lawn Mowers
Lithium stock investors owe thanks to California Gov. Gavin Newsom. Last weekend, the Democratic governor signed into law a ban on the sale of new lawn mowers and other off-road equipment with small gas-powered engines, to take effect as early as 2024. This law should increase demand for lithium, as we'll explore in a moment.
This news is providing a tailwind this week for lithium stocks. (Select lithium stocks have also benefited from company-specific news, though that's beyond the focus of this article.) Through Wednesday, shares of pure-play lithium giant Livent (NYSE: LTHM) were up 14%, and shares of lithium junior miners Lithium Americas (NYSE: LAC), Piedmont Lithium (NASDAQ: PLL), and Standard Lithium (NYSEMKT: SLI) are in the green by about 24%, 11%, and 25%, respectively. By comparison, the S&P 500 index fell 0.6% over the first three days of this week.
Many more Californians will be using electric lawn mowers in the near future. Image source: Getty Images.
Source Fool.com
