In the first half of 2023, the performances of the larger lithium producers -- this article's focus -- and the junior miners were all over the map. Some turned in strong performances and beat the S&P 500 index, which returned 16.9% over this period. Others had meager gains or losses. 

Long-term investors shouldn't give too much weight to shorter-term stock performances, which are heavily influenced by broader market dynamics. Rather, they should focus on how well a company's business is performing and its growth prospects.

While lithium prices have declined since hitting all-time highs late last year, the supply-demand picture still looks favorable for producers over at least the medium term, and perhaps longer. The primary driver behind the powerful demand for lithium is the rapidly increasing adoption of electric vehicles (EVs), which are powered by lithium-ion batteries. 

Continue reading

Source Fool.com