A new lithium supersonic bull market is born from AI

Jessica Amir joined discussion · Nov 17, 2025 18:13

While there's worry of an AI-fueled market crash, a new, powerful AI-driven lithium bull market has been born. Lithium prices are now up 50% from their June low, and stocks like Albemarle and Pilbara Minerals are leading global markets this month. With a supply deficit expected in 2026 and EV and battery demand accelerating, institutional investors are already positioning for the next multi-year lithium boom. The question is, are you?

https://www.youtube.com/watch?v=vdwOuHP93e4

From YouTube

Markets to swing in either direction this week

If you’ve been waiting for a crash to buy stocks you like, more ingredients have been added to support that thinking. The Nasdaq 100 fell 0.8% overnight. The small-cap index, the Russell 2000, shed 2%. When you see all three major indices, including the S&P500, closing near their session lows, which suggests more selling is likely. Bears are in control. Crypto’s telling a similar story. Bitcoin is trading at US$91,800 — down 28% from its high. Dark days are likely ahead until institutional buying returns. So why is there still lingering worry that something worse is brewing in financial markets, especially when the Nasdaq 100 is already down 5.3% from its highs?

Four reasons markets could swing lower: 1. Technical trends are pointing downward. 2. Concerns over “obscure leverage” are growing — Moody’s warns that some smaller tech companies may be hiding risky borrowing. 3. Economic data in the U.S. may not support a rate cut this week. 4. Nvidia reports earnings on Wednesday — and while still growing, revenue and profit could show a sharper slowdown than expected. Options imply a 6.5% move either way. It might explain why hedge fund manager Peter Thiel sold his entire Nvidia holding.

But I always say: there’s a bull market somewhere. And now, it looks like a supercharged lithium boom has begun.

A new lithium supersonic bull market has been born

Here's what’s happening. The lithium price has surged — now up 50% from the June low — signaling the start of a new bull market. (I recently spoke on lithium in our video and podcast and why you might expect higher levels (Retail investors are buying the dip, in record amounts).

The higher lithium price is fueling buying of lithium companies shares, on expectations that their profits will significantly increase. Albemarle shares are up 20% this month, the best performer in the S&P500. IGO is up 26%, the best performer in the ASX200. Pilbara Minerals (PLS) is up 20% so far this month as well. PLS has risen 270% since its June low and is still rallying (up another 4% yesterday).

Lithium's new supercharged boom

The higher lithium price and rally reflects that lithium will be in deficit in 2026 (bringing forward prior estimates that previously expected a deficit in 2027-2027). But now we have tightening supply and soaring demand. This could bring in institutional buying, with investors to position for this. (Sure it's already started to happen). But now we could see investment banks start to upgrade the lithium market and stocks in it. What's at play? Albemarle $Albemarle (ALB.US)$ reported global EV sales rising 30% and lithium-ion battery demand for stationary storage jumping 105% year-on-year in September. $Sociedad Quimica Y Minera De Chile (SQM.US)$ echoed similar optimism, confirming demand strength. Bloomberg Intelligence suggests 2026 will be highly favorable for lithium companies.

A new lithium supersonic bull market is born from AI

Lithium stocks to watch

– Pilbara Minerals $PLS Group Ltd (PLS.AU)$ — now up 270% from its June lows. Macquarie rates it 'Neutral'; Morningstar says 'Sell' after the sharp rally. I think it's still well positioned for next year’s expected lithium deficit. But you might expect some froth to come out of PLS.

- $PLS Group Ltd (PLS.AU)$, $IGO Ltd (IGO.AU)$, $Liontown Ltd (LTR.AU)$. Others of interest may include $Mineral Resources Ltd (MIN.AU)$ $Rio Tinto (RIO.US)$ $Ganfeng Lithium Group (002460.SZ)$ because these have lithium exposure and are bought / sold frequently a they are include in some lithium and battery tech ETFs.

Bottom line: Markets may have more downside in the short term, but the lithium boom is officially underway. If you take a long-term view, lithium stocks could be set for a multi-year run.

Lithium bulls vs bears questionnaire. Gain moomoo points by answering...

Other stocks on the move

– Alphabet $Alphabet-C (GOOG.US)$ — surged 3.1%, making it the only stock among the ‘Magnificent Seven’ to rise overnight. Berkshire Hathaway has bought in with a US$4.3B stake. At 26.9x forward earnings, it trades cheaper than AI peers like Microsoft and Nvidia.

– Luckin Coffee $Luckin Coffee (LKNCY.US)$ — popped 6% after Q3 results. Revenue rose 50% YoY and it added 3,000 stores, totaling 29,200 — outpacing Starbucks. The stock is up 57% year-to-date.

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more