The Globe and Mail reports in its Wednesday edition that a supply crunch has fuelled a red-hot rally in the lithium-carbonate spot price. The Globe's Shirley Won writes that Morningstar analyst Seth Goldstein says, "I don't see any major price decline any time soon because demand is going to keep growing as more EVs come into the market." He believes lithium producers are undervalued. Mr. Goldstein's top pick is Lithium Americas, which recently announced plans to split its North American and Argentinian lithium units into two companies by the end of 2023. He favours the move, saying that the two companies can now more easily obtain financing instead of multiple projects having to compete for capital. Lithium Americas is not in production yet, but its Cauchari-Olaroz brine project in Argentina is poised to do so early next year. Thacker Pass, its lithium-clay mining project in Nevada, is awaiting the outcome of an appeal in January of a court decision striking down an environmental lawsuit. Mr. Goldstein says it should proceed because the company has the federal and state permits to proceed with construction. Lithium Americas shares trade well below Mr. Goldstein's fair-market value estimate of $88 a share.
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