Lithium Americas (LAC +9.9%) rallies to its highest level in a month after J.P. Morgan issues a bullish take on the development stage lithium miner, seeing "lots of catalysts ahead to support the stock in a choppy market," including a favorable permitting outcome for the Thacker Pass project in Nevada by the end of Q1.

Reiterating his Overweight recommendation and $42 price target, JPM analyst Tyler Langton expects lithium prices will be supported over the next decade by strong demand and lagging supply leading to deficits, and he believes Lithium Americas is well positioned to take advantage.

"The company should see strong and steady production growth through the end of the decade, while its projects should have attractive positions on the cost curve," Langton writes, also touting "a solid balance sheet to fund this growth and significant leverage to our lithium price forecasts, which could prove to be conservative."

Lithium mining leader Albemarle reports Q4 earnings on Thursday, and the results could impact shares of LAC and other sector names.