The 7 Best Lithium Stocks to Buy Now

Lithium Americas focuses on the mining and production of lithium ore and is benefiting from the ongoing jump in demand for the mineral. A similar project in Thacker Pass, Nevada, is expected to deliver 60,000 tons per annum for the next 46 years. What’s more, it’s always possible that the above figure could be understated – and perhaps quite dramatically. According to other industry insiders, demand for lithium could keep ballooning. Indeed, the acceleration of productions utilizing the metal demonstrated no signs of slowing down. Therefore, you should keep close tabs on the lithium stocks that will make you rich in 10 years.

lithium stocks 2021

To be sure, the company is not a pure play on lithium mining, but it has benefited massively from the ramp in lithium demand. Also, given it has assets in the most lithium-rich countries in the world – Australia and China – we believe it will be a vital player for many years to come. As noted above, short and intermediate-term demand for lithium will likely depend on the dynamics of the electric vehicle market.

It’s a company that manufactures specialty chemicals and is the world’s largest lithium producer. If you are a big believer in the electric vehicle market and its growth potential going forward, lithium stocks should be of great interest to you. On May 26, Sigma filed a consolidated technical report that looks at two initial production phases for Grota do Cirilo. The integrated operation would source feedstock spodumene ore from the company’s Phase 1 and Phase 2 lithium deposits to produce battery-grade, high-purity lithium concentrate. Its share price continued to grow throughout the year, reaching a year-to-date high of US$37.46 on October 27 after starting the year at US$10.57.

Goldman Sachs expects lithium supply to flip from a 84,000-ton deficit this year to a 76,000-ton surplus, as softer demand meets higher output. Lithium is a highly efficient energy storage medium used in virtually all batteries currently powering electric vehicles as well as consumer electronics. The Benchmark Minerals’ Lithium Price index has soared more than 180% in the past year. You can take advantage of our Next Generation platform filtering feature by focusing on specific types of stocks.

In brief, LAC, as the name suggests, is a mining company that specializes in advancing lithium projects. Overall, the company primarily operates in Argentina and the U.S. In Argentina, its Caucharí-Olaroz site is moving towards its first production phase. In the U.S., LAC’s Thacker Pass received its Record of Decision approval and is moving towards construction. Even after gaining over 120% in the past year, investors continue to flock to LAC stock. To facilitate this massive demand for EVs, automobile manufacturers are aggressively investing in gigafactories in key target markets such as the United States, some parts of Europe, and China.

An in-depth look at the leading lithium stocks in the U.S stock market this year. On October 13, Cygnus announced it would be raising AU$6.3 million to advance Pontax through the use of fully paid ordinary shares priced at AU$0.73 each. As of November 8, diamond drilling at Pontax had commenced, with 10,000 meters planned for the maiden drill program. The company’s share price reached a year-to-date high of AU$0.60 on November 14. Its two most recent pieces of news were both related to the Salinas project.

What are the best lithium stocks to buy?

Albemarle is one of the leading specialty chemical companies in the world, and its business segments include Lithium, Bromine, and Catalysts. Albemarle sells lithium both on fixed-price contracts and variable price contracts, but recently, the company announced a planned transition to more variable-priced contracts going forward. This is good news for investors, in my opinion, as lithium prices are likely to remain strong in the coming years as supply will almost certainly fail to keep up with rising demand. The company plans to expand its lithium production capacity in the next 3-5 years to meet the increasing demand from EV component manufacturers, and its capacity is expected to increase from 88kt to 200kt by 2025.

lithium stocks 2021

The mineral is heated, cooled, and mixed with sulfuric acid to create lithium carbonate. The remaining amount of lithium is found in traditional mining two types of profit making traders operations. August saw more positive movement for Latin Resources, when drilling confirmed a new discovery west of Salinas’ Colina prospect.

The two companies are also looking to construct a plant in Naraha, Japan, in order to expand their production of lithium hydroxide. US-based company Albermarle is one of the largest providers of lithium for batteries that power electric vehicles. It produces both types of lithium, carbonate and hydroxide, as the company sources lithium through its brine and rock xcritical mining operations within several countries. As well as being immensely successful in the electric car industry, the company also produces over 100 lithium-based products for a range of other industries. In order to protect itself from any great potential losses from volatility in the market, Albermarle can also benefit from the successes of its bromine segment.

With this long-term focus and goal, Sigma Lithium seems in a pole position for long-term success. However, if the stock can hit the target price of $2.01, investors could see a return of 337% from current levels. MALRF has delivered solid returns for investors, up 32% over the past 12 months and 258% over the past five years. Of the 16 analysts covering the stock, 13 rate it a “buy” or “overweight,” with three “holds” and no “sells.” Their average price target of $97.61 represents upside of 63%.

Which Are The Best Lithium Stocks? Our Top Choice Is Livent

A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University. To revolutionize the industry, making an otherwise painstaking process take a fraction of the time.

lithium stocks 2021

But in return, investors can buy a stock for under $4 that is expected to trade above $14 in the near future. EBITDA growth was even more impressive, increasing 447% to $1.2 billion. That fact, combined with the fact that China is the largest EV market, makes GNENF stock one to buy for its massive upside.

In turn, investors have realized that lithium stocks have the inherent potential to produce outsized gains. All of these cheap lithium stocks to buy for big upside possess that same potential. Automobile manufacturers are investing heavily in EV development, signaling lithium producers to identify viable resources as quickly as possible. Toshiba provides electronic devices and battery storage solutions globally. The company has many businesses outside of battery production, so like Panasonic, Toshiba is not a pure play on lithium or batteries. However, Toshiba has scale and brand recognition in the battery space, selling various electronic devices with lithium-ion battery power cells.

Global X Lithium & Battery Tech ETF (LIT)

The company projects its lithium carbonate production capacity to grow from 20ktpa to 100ktpa by 2030, and to achieve this goal, Livent is expanding its footprint in Argentina. Investors looking for cheap lithium stocks likely understand the immense growth potential the sector offers. The rapid growth in electric vehicles has spurred rapid growth in demand for lithium, a chemical element that is a key component in EV batteries. Australian mining company Galaxy Resources Limited has lithium mining operations in Australia, Argentina and Canada. The company is involved in mineral exploration and processing with its main activities focusing on the production of lithium carbonate.

  • Although global demand for batteries bodes well for lithium battery producers, expect plenty of volatility along the way.
  • Exchange traded funds covering the space have been less fortunate.
  • We note that Albemarle has traded with extremely rich valuations in recent years, and while the company sports a terrific growth profile, one wonders how much that will actually benefit shareholders today.
  • Anactive community of like-minded investors to share your findings.

The Federal Reserve has raised interest rates significantly, which has contributed to the overall declines in the stock market as a whole. While LAC is up 175% over the past five years, it’s down 18% year to date and 36% below its all-time high. SQM has a very solid track record, reporting positive annual EPS figures for more than a decade. Just be aware that the company’s quarterly results can be somewhat volatile, and they haven’t always sustained an upward trend over the long term. Titan will ask you about your goals, financial situation, and risk tolerance to produce a recommendation that’s customized to you. Since then, it’s had a valley and dropped below $0.40 in early 2020.

However, that is unlikely as China and the U.S. both appreciate investor capital no matter its origin. Lithium America’s Argentina operations are expected to come online in 2022 and produce 40,000 tonnes LCE. The Dividend Aristocrats List is comprised of 65 stocks in the S&P 500 Index with 25+ years of consecutive dividend increases. First, picking a growth industry may not be exceptionally difficult, but picking “winners” can test the best analyst. Out of the automobile or Internet, just a handful of “winners” emerged, while hundreds or thousands were cast aside – once hyped, once with great expectations, but eventually for naught. For example, an investor pointing to the Internet in the mid-1990, for example, would still be seeing that growth industry play out today.

While miners cannot dictate higher prices alone, they are likely to benefit from higher prices if they come about from supply shortages / faster demand growth. Sociedad Quimica Y Minera de Chile ADR, more succinctly known as SQM, is a Chilean commodities producer specializing in lithium, potassium fertilizers, iodine, and solar salts. The company should produce just over $10 billion in revenue this year. Today, the “big three” market share has dropped to 53%, while Chinese companies control about 40% of the world’s lithium market share. Indeed, Australia and Chile alone account for almost 80% of the production market.

Lithium Stocks List | Updated Daily | The Best Lithium Stocks Now

While brine mining is a lengthy endeavor – usually taking eight months to 3 years – it is still usually more accessible and cheaper than hard rock mining. In 2009, the lithium-ion battery made up roughly 21% of all lithium consumption. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The company is well-capitalized with cash and manageable indebtedness, and it has generated healthy profit margins. Lithium is mined throughout the world, but the two countries that produce the most are Australia and Chile. Australia’s lithium comes from primarily hard-rock deposits, while Chile’s comes from lithium brines.

According to Grand View Research, the overall market is expected to grow at a compound annual rate of 12% between 2022 and 2030. Investing in mining companies that produce base materials and chemicals can be a wild ride for investors. Stock 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.

For manufacturers, price and demand for lithium goods are important, but so is the quality of their products. We analyzed a group of companies based on recent sales and earnings, expected future sales and earnings, and overall financial health. The list above encompasses all of the main public companies in the lithium space. There is a very limited roster of companies active in mining, processing, and refining lithium.

Bradda Head Lithium Limited Opens the Market

Noram came from an early-stage exploration company to a mainstream North American company. LIBs are increasingly appearing in a range of use cases, including electrical grids, portable devices like laptops, tablets, and smartphones, medical equipment, power tools, and most of all, electric vehicles 3. Recent data suggests the global production capacity of lithium will not be sufficient to meet the rising demand through 2030. Much of the enthusiasm focuses on Lithium Americas’ acquisitive strategies. Earlier this month, the company “…bought all issued and outstanding shares in Arena Minerals in a deal valued at US$227 million for its Pastos Grandes lithium project,” per Mining Journal. Going forward, its foothold in that market will become stronger as electrified vehicles become increasingly popular.

Chile currently possesses the world’s largest commercial lithium reserves. SQM and Albemarle are the only two producers operating in the country. However, Bolivia is home to the globe’s largest lithium reserves, according to the U.S. However, Bolivia’s vast stores are not yet considered commercially viable. Telam, Argentina’s national news agency, reported in October that representatives from the three countries have been in “advanced talks” on an agreement to give them control of global lithium prices. More and more car manufacturers are switching from manufacturing cars with internal combustion engines to all-electric vehicles , especially as EVs become more prevalent in society.

​, such as cars and scooters, which has seen production levels increase greatly since it first began. There are many other uses for lithium, such the creation of ceramics and glass. That is a strong argument in favor of investing in SQM shares while they remain somewhat muted. Sure, Ganfeng is a Chinese firm listed on an American exchange as an American Depositary Receipt .

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Its website brags about having pure lead from its processing system. Aqua’s mission is to increase global lead production without increasing emissions. The leadership team has been developing and managing Salton Sea renewable energy projects.

Thacker Pass is located in Nevada and is the second-largest lithium mine in the world based on proven and probable reserves. The mine has 179.4 megatonnes of lithium of which 3.1 megatonnes in lithium carbonate equivalent . The mine is on the cusp of production and is expected to have a life of 46 years. On the battery side, finding “pure play” lithium stocks is even more challenging.

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