13 Best Lithium Stocks to Invest in Today

The identified reserves are 4 million metric tonnes, and inferred resources push the count even higher. The process cycle of producing battery-grade lithium is surprisingly short . For its California location, the company doesn’t extract the brine itself but has options contract with the two companies operating in the region, which gives it access to plenty of raw material.

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Best 10 ASX lithium stocks to watch in 2022/23

The Asia-Pacific region is the primary market for the consumption of lithium, mainly due to the high demand from countries like China, South Korea, and Japan. Investing in the best lithium stocks to buy can prove to be incredibly lucrative. The electric vehicles sector, in particular, is expected to be a focal point in driving long-term growth in the space. And, according to a McKinsey report, the demand for lithium carbonate equivalent is expected to grow by 500% to 700% from 2021 to 2030. When it comes SQM’s place on this list of the best lithium stocks, the company expects to produce 180 metric tonnes of lithium carbonate in 2023 and is one of the world’s largest lithium producers. One broad category to get exposure to lithium is lithium mining stocks.

https://1investing.in/ prices can be volatile and susceptible to sharp fluctuations based on the market price of the material being mined and sold. Although global demand for batteries bodes well for lithium battery producers, expect plenty of volatility along the way. Nevertheless, over the past five years, lithium stocks have fared well and prices have risen.

What Are the Best Lithium Stocks To Buy?

The same report said that the EV market is set to grow exponentially over the next two decades, fueled by a global push to achieve net-zero carbon emissions and cost-effectiveness of electric cars. Geological Survey, batteries account for about 70% of lithium consumption worldwide, followed by ceramics & glass (14%). Given the ups and downs in lithium production, keep any investment in this niche of the mining and chemicals industry small.

Since PLS is a major producer of lithium, the increase in the price of this commodity has caused it to surge, rising +45.9% YTD. Two new projects, one in Australia and one in Canada, that the company just bought have the potential to quadruple the entire output of the company. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

Livent Corporation (NYSE:LTHM)

The future is being powered by lithium, a metal that is the key ingredient for making lightweight, power-dense batteries. Electric vehicles depend on lithium batteries and EV sales are seeing massive annual growth, and analysts expect global EV sales to increase 57% in 2022 on a year-over-year basis. While there are several risks, it is still very possible for investors to make money from lithium stocks through share appreciation. Many EV producers including Tesla and NIO have disclosed their plans to increase their production in the short term and long term. The lithium demand has been growing steadily and now over 50 percent of the lithium produced is used in batteries—up from 14 percent in 2019. No, it is still not too late to invest in lithium stocks, since demand is growing for the raw material, and it is being increasingly integrated into manufacturing processes.

• Therefore, the company is expected to generate good revenue in the upcoming years.
• It’s the third-highest grade project worldwide, and that’s its chief selling point.
• In fairness, Lithium Americas does offer some attractive metrics, like a three-year book growth rate of 49.9%.
• This prediction seemed spot on as prices have since fallen to Goldman’s target range.

A brief examination of ASX lithium stocks, their advantages and drawbacks, and a rundown of the 10 best lithium stocks to watch in Australia this year. That makes lithium a great investment with aggressively growing demand and relatively limited supply. This small venture capital stock potentially made its investors quite rich two times in the last seven years.

SQM expects to have this production capacity up and running by 2025. Shares of SQM have jumped by more than 5% for the year-to-date amid investor expectations that the reopening of China could boost the demand for lithium from EV companies. TipRanks’ consensus price targets and ratings are based on analyst opinions issued over the past three months. Stocks are listed in order of consensus rating, lowest to highest, followed by 12-month price targets.

This figure is forecast to reach 2000 GWh in 2030 – which represents about 8% of global energy supply. But, please bear in mind that all investment incurs risk – risk that is only amplified when trading with leveraged derivatives like spread bets and CFDs. Ensure that you understand how they work and always take steps to manage your risk before opening a position. The value of shares, ETFs and ETCs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. On the other hand, lithium’s instability makes it around 50% more expensive to manufacture lithium batteries, which impacts the cost of an EV. Lithium batteries also usually have a shorter shelf life than nickel batteries before needing replacing.

Allkem was formed from the merger of two put dividends to work in your portfolio giants, Orocobre and Galaxy Resources last year. It now controls a global portfolio of diverse, high-quality lithium chemicals. Headquartered in Buenos Aires, it operates lithium projects across Argentina, Australia and Japan, with development underway to meet significant expected market growth. In addition to the EV realm, lithium has significant applications across other industries. However, over the years, demand has shifted substantially from ceramics, glasses, metallurgical powders, and other industrial use cases to batteries. The numbers mentioned above are impressive, especially considering the impact of emerging battery technologies such as quantum glass over the next few years.

Conversely, lithium-producing stocks would benefit from a boost to lithium prices if material shortages emerge. Keep an eye on the following stocks in addition to the top 5 lithium stocks listed above to experience significant gains in 2022. Additionally, the corporation has a market value of almost $1 billion. But when LIT purchases the PLS project from Galaxy Resources Ltd., which is owned primarily by mining tycoon Clive Palmer, its fortunes turn around in 2013. A significant portion of the nation’s known lithium resources and over half of the world’s known spodumene deposits are present in this project.

Resulting global supply chain issues have been affecting the firm ever since. However, sales are rebounding with lithium pricing and demand on the rise. An in-depth look at the leading lithium stocks in the U.S stock market this year. Hence, it is also not reporting any profits, with a negative full-year net income of $19.99 million in 2021 and two of three quarters reported thus far for 2022. However, analyst forecasts project a median 58% 12-month increase in its share price. However, these projects are both still in development; the result is that LAC is currently operating at a loss.

• While this is a strong market, it does leave Livent at risk during the expected Chinese downturn.
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• In North Carolina, the company is qualifying products with customers at its new 5,000 metric ton lithium hydroxide line and will deliver commercial volumes in 2023.
• Ioneer Ltd has a total market capitalization of 1.6 billion AUD, and they received a return of 185% in 2021.

The value of stocks, shares and any dividend income may fall as well as rise and is not guaranteed, so you may get back less than you invested. You should not invest any money you cannot afford to lose, and you should not rely on any dividend income to meet your living expenses. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes and different accounting and reporting standards. They may have other tax implications, and may not provide the same, or any, regulatory protection.

Legacy automakers have big plans to electrify their vehicle lineups in the coming years, which means millions of new EVs could be sold. The potential trend has led to a big jump in smaller, more speculative lithium stocks such as Canada-based Lithium Americas. The below ideas for best lithium stocks offer an arguably more compelling investment. SQM investors have the potential to snag a fat dividend and also get some diversity.

Following a beat on earnings supported by strong demand, Albemarle stock increased by almost 5% on February 16, 2023. Even though the business increased prices in response to the skyrocketing price of lithium, demand has remained strong. Livent is a lithium compound producer that specializes in lithium extraction and purification technology.