5 Lithium Stocks Billionaires Are Loading Up On

4. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)

Number of Hedge Fund Holders: 20

Number of Billionaire Investors: 7

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is involved in the production and distribution of specialized plant nutrients, derivatives of iodine and lithium, potassium chloride and sulfate, and industrial chemicals. The company provides lithium carbonates for a wide range of applications, including batteries, ceramic and enamel industries, heat-resistant glass, air conditioning chemicals, steel extrusion, primary aluminum smelting, pharmaceuticals, gunpowder manufacturing, and more. Additionally, it supplies lithium hydroxide for the lubricating greases industry and cathodes for batteries. Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a popular lithium stock among billionaires as of Q1 2023. 

On May 24, Joel Jackson, an analyst from BMO Capital, maintained an Outperform rating on Sociedad Química y Minera de Chile S.A. (NYSE:SQM) but lowered the firm’s price target on the shares to $105 from $130. The analyst has adjusted the expected average selling price (ASP) of lithium for 2023, reducing it from approximately $45,000 per metric ton to around $38,000 per metric ton. However, the expected price for 2024 remains at $25,000 per metric ton. The firm suggests that SQM still has significant potential for share price growth over time if the lithium ASP remains around $25,000 per metric ton and lithium volumes continue to increase from Atacama and the future Australian spodumene/hydroxide joint venture project.

According to Insider Monkey’s first quarter database, 20 hedge funds were bullish on Sociedad Química y Minera de Chile S.A. (NYSE:SQM), compared to 25 funds in the last quarter. Billionaire Ken Griffin of Citadel Investment Group is the biggest stakeholder in the company, with 1.5 million shares worth $125 million. 

Here is what ClearBridge Investments has to say about Sociedad Química y Minera de Chile S.A. (NYSE:SQM) in its Q1 2021 investor letter:

“Among materials names in our structural bucket, we sold SQM as the stock hit our price target. Lithium prices remain at levels well below previous highs and while we expect they may reach higher levels in the future; high pricing likely encourages additional supply onto the market.”