Best Lithium Stocks Of 2022 (2022)

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Lithium has become the essential ingredient for lightweight, power-dense batteries used by laptops, cell phones and electric vehicles (EVs). Given the insatiable demand for these products—especially EVs—the price of lithium has more than doubled since 2015.

If you’d like to profit from the surging interest in this essential commodity, here are some of the best lithium stocks, plus a look at the best strategies for investing in lithium.

The Best Lithium Stocks of September 2022

The best lithium stocks for your portfolio ultimately depend on your personal investment goals. To aid in your research, this lithium stocks list shows some of the top performing companies in the industry.

Albemarle (ALB)

Albemarle is a specialty chemicals company and a leading producer of lithium, bromine and refining catalysts. Lithium is ALB’s biggest line of business, making up about 55% of their revenue. While they are an American company based out of Charlotte, North Carolina, they also own lithium mines in Chile and Australia.

Albemarle is one of the world’s largest producers of lithium to supply EV battery manufacturers. They are investing to double their domestic production of lithium as auto manufacturers want to avoid disruptions from international supply chains.

Besides producing lithium for existing technologies, they also invest in advanced materials research and development, including technologies for innovative lithium battery materials. Albemarle is well-positioned to benefit from more demand for EVs.

Sociedad Química y Minera de Chile (SQM)

Sociedad Química y Minera de Chile—usually referred to simply as SQM—is based in Santiago, Chile. This gives the company convenient access to some of the best lithium deposits in South America, such as the salt flats in the Atacama Desert. SQM’s location helps keep their production costs low. Besides lithium, the company also produces iodine, potassium, industrial chemicals and nitrates for fertilizers.

SQM has seen considerable growth in revenue and income over the past year. Their stock did take a tumble in late 2021, when Chilean voters elected Gabriel Boric, a left-wing activist, as president. Investors worried he would require more environmental oversight on mining companies like SQM.

Despite these concerns, SQM’s share price quickly rebounded to an even higher level as investors felt the strength of the lithium market outweighed the political risk. In addition, the Chilean government awarded SQM a lithium development contract in January 2022, showing support for the company and demand for their services.

Lithium Americas Corporation (LAC)

Founded in 2007 in Vancouver, Canada, Lithium Americas Corporation is a relatively young company. They are working on two major lithium mining projects: one in Thacker Pass, Nevada and another in Argentina. Thacker Pass is the largest known lithium resource in the United States, while LAC’s Argentina project would be the largest new brine operation for producing lithium in 20 years.

Both these projects are still under development. LAC is not currently producing lithium or earning revenue. This makes it riskier than other more established companies. However, if they successfully launch their projects, there should be strong demand for their production, making them one of the lithium stocks that could explode.

Ganfeng Lithium, another top pick on this list, is LAC’s largest shareholder. Ganfeng owns 11% of Lithium Americas Corporation.

Piedmont Lithium Limited (PLL)

Piedmont Lithium Limited is another U.S. lithium mining startup company. PLL is working to launch lithium mines in Quebec, Canada, Cape Coast, Ghana and Gaston County, North Carolina. The company also has its headquarters in North Carolina.

In 2021, Piedmont announced they signed a lithium supply deal with Tesla, Inc. (TSLA), which more than doubled their share price. Since this announcement, Piedmont had to delay scheduled shipments to Tesla as government permit trouble slowed down the expected opening of their North Carolina mines.

North Carolina officials have voiced concerns about the environmental impact of Piedmont Lithium’s project. They could vote to delay it even further or block the mine completely. Given this political risk, and the fact that Piedmont still isn’t generating revenue, PLL stock could be riskier than more established lithium producer stocks. If they do end up opening their mine, however, shareholders should be rewarded when the sizable Tesla deal come through.

Livent Corporation (LTHM)

Livent is a lithium technology company that produces batteries for EVs and handheld devices. About half their revenue comes from energy storage products. They also use lithium to produce alloys and advanced polymers used for aircraft, athletic footwear and other applications.

Livent has its headquarters in Philadelphia. To secure the lithium needed for their goods, Livent runs mines in Argentina and Canada. Given their resources, they are one of Tesla’s main suppliers of lithium.

Even though Livent is a young company, they are already generating revenue and are profitable.
Their revenues saw a significant increase over the past year, increasing up from $288 million in 2020 to $420 million in 2021. If lithium prices remain high, so should their future revenues.

Ganfeng Lithium (GNENF)

Ganfeng Lithium is China’s biggst lithium miner. Ganfeng handles lithium throughout the entire production cycle. They mine lithium, mainly from a major deposit in Australia. They then refine and process the lithium ore through deep salt processing and lithium metal smelting. Lastly, they manufacture batteries using lithium and recycle lithium from old batteries.

As one of the top lithium stocks, Ganfeng Lithium has several advantages. They are in a good position to support China’s surging EV market. They also have healthy cash reserves and \profit margins. While Ganfen Lithium’s stock trades on the Hong Kong and Shenzhen stock exchanges, U.S. investors can buy shares in the OTC market.

(Video) Best Lithium Stocks (2022)

How To Buy Lithium Stocks

The easiest way to profit from the world’s surging demand for lithium is to buy shares of stock in the companies listed above. The lithium stocks on our list are mostly involved in mining and refining the material for use in batteries.

You can also buy the shares of companies that produce the battery products that use lithium. Learning to research stocks is a key skill for new investors, and doing your due diligence can help you learn more about this corner of the stock market.

If you don’t already have an investment account, check out our listing of the best online brokers. These trading platforms have additional resources to help you choose the right lithium stocks for your portfolio.

Once you’ve identified lithium stocks you want to buy, use your brokerage account to buy American lithium stocks on the New York Stock Exchange. To buy foreign companies, make sure your broker that has access to international markets.

When you buy individual stockis, you need to put in research to make sure the stock is a good investment. If your picks pay off, you have higher earning potential through individual stocks.

Consider Buying Lithium ETFs

A good way to avoid the risks of owning individual lithium stocks is to consider buying exchange-traded funds (ETFs). There are a range of lithium ETFs that build portfolios of the best lithium stocks available and charge reasonable expense ratio fees.

  • Global X Lithium & Battery Tech ETF (LIT). This fund tracks the Solactive Global Lithium Index. Currently it’s top three holdings include Albemarle Corp, Tesla and SQM.
  • Amplify Lithium & Battery Technology ETF (BATT). This fund tracks the EQM Lithium & Battery Technology Index. Its top three holdings are the materials stock leader BHP Group, SQM and Albemarle.
  • VanEck Vectors Rare Earth/Strategic Metals ETF (REMX). The benchmark for this fund is the MVIS®Global Rare Earth/Strategic Metals Index, which tracks public companies active in producing a wide range of strategic materials, including lithium.

ETFs pool money from many investors to build a diversified portfolio of investments that track a benchmark index. They are less risky than buying individual stocks as they spread your investment dollars across a large portfolio of different stocks.

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What You Need to Know about Lithium Stocks

When choosing your lithium stock investments, one decision is whether you want to invest in lithium startups or more established companies.

Lithium startups are early-stage companies, still working on producing their mines and products. They might not be generating revenue. They have more risk, but their share price has more potential to grow should things work out.

More established lithium companies are already producing lithium and selling products. They have less risk and they are more likely to distribute profits to shareholders, making them useful for dividend investing. The drawback is that they don’t have as much growth potential for stock returns.

Another decision is whether you want to invest in companies focused on the early production of lithium itself, like lithium mining stocks, or if you want to invest in companies that deal with lithium-based products, like lithium battery stocks and lithium recycling stocks. With miners, their success is significantly based on the price of lithium. For manufacturers, price and demand for lithium goods are important, but so does the quality of their products.

A well-diversified portfolio would have a mix of all types of lithium investments. If you need help putting this together, consult with a financial advisor for their advice on which lithium stocks to buy.

Why Are Lithium Stocks Down?

After many lithium stocks reached record highs in late 2021, the sector hit a bit of a roadblock in 2022 and many stocks are well off their highs.

Part of this is due to the cyclical nature of the market. After so many years of strong growth, lithium stocks were due for a correction. In late 2021, Goldman Sachs warned that overall lithium stocks prices were too high, based on market conditions. This prediction seemed spot on as prices have since fallen to Goldman’s target range.

(Video) 7 BEST Lithium Stocks 2022│LTHM ALB SQM LAC SGML PLL SLI

The Federal Reserve has also begun tightening interest rates, which has significantly contributed to the overall declines in the stock market as a whole, impacting lithium stocks. A rebound could already be underway, as some stocks, like SQM and PLL, have already surpassed their prices from the end of 2021.
Should demand for EVs and other electronic goods continue to grow, it should mean good things for lithium stocks, even if they go down from time to time.

FAQs

Is lithium a good investment 2022? ›

Lithium prices hit an all-time high in 2021 and continued that trend into 2022.

Will lithium prices go up in 2022? ›

We forecast Chinese lithium carbonate 99.5% to average USD68,000/tonne in 2022 and USD55,000/tonne in 2023 (compared to USD18,938/tonne in 2021), and for Chinese lithium hydroxide monohydrate 56.5% to average USD67,000/tonne in 2022 and USD56,000/tonne in 2023 (compared to USD16,506/tonne in 2021).

What company does Tesla buy lithium from? ›

It's important to understand that there is not only one company that supplies lithium to Tesla. At the end of 2021, Tesla inked a fresh three year lithium supply deal with top lithium producer Ganfeng (OTC Pink:GNENF,SZSE:002460). The Chinese company will provide products to Tesla for three years starting from 2022.

Who is the best lithium producer? ›

The latest data from the US Geological Survey shows that the world's top lithium-producing countries are Australia, Chile and China, with production reaching 55,000 tonnes, 26,000 tonnes and 14,000 tonnes, respectively.

What is best lithium stock to buy? ›

What Are the Best Lithium Stocks To Buy?
  • Albemarle.
  • Sociedad Química y Minera de Chile.
  • Lithium Americas.
  • Piedmont Lithium.
  • Ganfeng Lithium.
  • Livent.
14 Sept 2022

Should I buy stock in lithium? ›

If you'd like to see high returns on your investments, lithium stocks are a promising option. EVs are here to stay, and more and more companies are growing their demand for lithium.

Will lithium price stay high? ›

Financial risk management, solutions and insights company Fitch Solutions Country Risk and Industry Research (Fitch Solutions) says lithium prices will remain “extremely” elevated this year and next, as accelerating demand for lithium-ion batteries and a tight upstream supply keep market supply constrained.

Is Argentina lithium a good stock to buy? ›

1 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Argentina Lithium & Energy in the last twelve months. There are currently 1 buy rating for the stock. The consensus among Wall Street equities research analysts is that investors should "buy" LIT shares.

Why are lithium stocks falling? ›

Despite the fact that lithium demand is expected to explode over the coming years with demand for electric vehicles projected to skyrocket, the metal's prices in 2019 have been falling due to an oversupply problem caused by an avalanche of new lithium supplies.

Who owns the largest lithium mine in America? ›

Lithium Americas Corp.

Is ganfeng lithium stock a good buy? ›

As one of the top lithium stocks, Ganfeng Lithium has several advantages. They are in a good position to support China's surging EV market. They also have healthy cash reserves and \profit margins.

What country is rich in lithium? ›

Where is lithium available from? With 8 million tons, Chile has the world's largest known lithium reserves. This puts the South American country ahead of Australia (2.7 million tons), Argentina (2 million tons) and China (1 million tons).

What will replace lithium? ›

These include better design to ensure longer-lasting batteries and a circular economy model to recover used material.
  • Aluminum. Aluminum is a readily available resource and one of the most recyclable materials. ...
  • Salt. Salt is very similar to lithium in terms of its chemical make-up. ...
  • Iron. ...
  • Silicon. ...
  • Magnesium. ...
  • Hemp.
16 May 2022

What is the best ETF for lithium? ›

Investing in lithium and battery tech ETFs
FundAssets Under ManagementAnnual Fee
Global X Lithium & Battery Tech ETF (NYSEMKT:LIT)$4.6 billion0.75%
Amplify Lithium & Battery Technology ETF (NYSEMKT:BATT)$194 million0.59%
iShares Global Clean Energy ETF (NASDAQ:ICLN)$5.6 billion0.42%
2 more rows
10 Aug 2022

Where is the world's largest lithium deposit? ›

In nature, lithium occurs only in compounds due to its high reactivity. Chile has the largest lithium reserves worldwide by a large margin. Australia comes in second, with reserves estimated at 5.7 million metric tons in 2021.

Will standard lithium stock go up? ›

Standard Lithium Ltd quote is equal to 4.370 USD at 2022-10-01. Based on our forecasts, a long-term increase is expected, the "SLI" stock price prognosis for 2027-09-24 is 15.207 USD. With a 5-year investment, the revenue is expected to be around +247.98%. Your current $100 investment may be up to $347.98 in 2027.

Who makes battery for Tesla? ›

If you've ever wondered “Who makes Tesla batteries?”, the answer is chiefly Panasonic, although CATL is a key Tesla car battery manufacturer, due to the fact the two companies have agreed to produce lithium-ion batteries together at Tesla's second “battery megafactory” at Giga Shanghai.

Is Alpha lithium a good investment? ›

If you are looking for stocks with good return, Alpha Lithium Corp can be a profitable investment option. Alpha Lithium Corp quote is equal to 0.630 USD at 2022-09-30. Based on our forecasts, a long-term increase is expected, the "APHLF" stock price prognosis for 2027-09-27 is 1.195 USD.

What is the future of lithium? ›

The IEA says the world could face lithium shortages by 2025. And Credit Suisse says lithium demand could treble between 2020 and 2025, meaning “supply would be stretched”. Campaign group Transport and Environment says there is only enough lithium to produce up to 14 million EVs in 2023, Reuters reports.

Is lithium the new gold? ›

two centuries, lithium is suddenly making the news: it is the primary ingredient of the lithium-ion batteries set to power the next generation of electric vehicles and, as such, could become as precious as gold in this century1.

What lithium stocks pay dividends? ›

Portfolio of Dividend-Paying Lithium Stocks Traded on U.S. Stock Exchanges
4 Dividend-Paying Lithium Stocks
AlbemarleALB$1.58 (0.65%)
Chemical & Mining Co. of ChileSQM$11.15 (10.74%)
EnerSysENS$0.70 (1.10%)
FMC CorporationFMC$2.12 (1.96%)
2 more rows

Will lithium go up again? ›

Looking further ahead, S&P Global forecasts: The visible lithium supply pipeline could be sufficient to meet demand in 2023. The lithium market is likely to return to a deficit from 2024, which is forecast to deepen over 2024-26, as demand growth once again outpaces that of supply.

What's happening to the price of lithium? ›

Despite retreating from its April highs, the price of Lithium has jumped more than 600 percent since the start of the year, from about $10,000 per metric tonne in January to $62,000 in June, according to Benchmark Market Intelligence.

Is American lithium a buy? ›

Is American Lithium Corp. stock A Buy? American Lithium Corp. holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock.

How do I buy lithium shares? ›

How to buy shares in Core Lithium
  1. Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the ASX. ...
  2. Open and fund your brokerage account. ...
  3. Search for Core Lithium . ...
  4. Purchase now or later. ...
  5. Decide on how many to buy. ...
  6. Check on your investment.

Who owns lithium mine in Nevada? ›

Cypress owns 100% of the Clayton Valley Lithium Project totalling 5,590 acres in southwest Nevada, USA. The Clayton Valley Project is located immediately east of Albemarle's Silver Peak mine, North America's only lithium brine operation, which has been in continuous operation since 1966.

Is Albemarle overvalued? ›

Albemarle Corp shows a prevailing Real Value of $222.91 per share. The current price of the firm is $265.44. At this time, the firm appears to be overvalued.
...
USD 265.44 12.51 4.50%
LowIncome Per ShareHigh
1.031.041.05

Why is lithium booming? ›

In March 2022, lithium prices hit an all-time high of $77,000 per tonne. The boom in price has been the result of a range of factors, including surging energy prices strengthening the appeal for the energy transition, booming demand for electric vehicles (EVs), and rapid advancement in rechargeable battery technology.

Will Piedmont lithium stock go up? ›

Piedmont Lithium Inc (NASDAQ:PLL)

The 10 analysts offering 12-month price forecasts for Piedmont Lithium Inc have a median target of 97.50, with a high estimate of 140.39 and a low estimate of 85.00. The median estimate represents a +82.31% increase from the last price of 53.48.

Is there a future for lithium? ›

Despite expectations that lithium demand will rise from approximately 500,000 metric tons of lithium carbonate equivalent (LCE) in 2021 to some three million to four million metric tons in 2030, we believe that the lithium industry will be able to provide enough product to supply the burgeoning lithium-ion battery ...

What is the future of lithium? ›

The IEA says the world could face lithium shortages by 2025. And Credit Suisse says lithium demand could treble between 2020 and 2025, meaning “supply would be stretched”. Campaign group Transport and Environment says there is only enough lithium to produce up to 14 million EVs in 2023, Reuters reports.

Will lithium prices continue to rise? ›

* In 2021, total cash costs of lithium concentrate rose 17.4% year over year and of chemicals rose 7.8% year over year.

Is lithium going to rise? ›

After rallying to all-time highs in 2021, lithium prices began to stabilize in the first few months of 2022. Demand for the battery metal is expected to soar in the coming decades, with questions about supply increasing.

What will replace lithium batteries? ›

These include better design to ensure longer-lasting batteries and a circular economy model to recover used material.
  • Aluminum. Aluminum is a readily available resource and one of the most recyclable materials. ...
  • Salt. Salt is very similar to lithium in terms of its chemical make-up. ...
  • Iron. ...
  • Silicon. ...
  • Magnesium. ...
  • Hemp.
16 May 2022

Why are lithium stocks crashing? ›

The demand for electric vehicles has been outstripping supply for quite some time due to COVID lockdowns and supply chain issues. That said, increased demand is also being driven by Governments legislating the move away from internal combustion engines and a desire by consumers to be environmentally friendly.

Is lithium the new gold? ›

two centuries, lithium is suddenly making the news: it is the primary ingredient of the lithium-ion batteries set to power the next generation of electric vehicles and, as such, could become as precious as gold in this century1.

Is there a better battery than lithium? ›

Fluoride batteries have the potential to last eight times longer than lithium batteries, but that's easier said than done. That's because fluoride is an anion, or a negatively charged ion, which is the magic behind its high energy density but is also the reason it's reactive and hard to stabilize.

What is the next big battery technology? ›

Sila Nanotechnologies is replacing the graphite anode that forms a lot of the bulk and about 15% of the weight of today's lithium-ion batteries with a form of silicon that it claims will give battery cells a 20 to 40% increase in energy density while also charging faster.

Will graphene replace lithium? ›

Graphene sodium-ion and graphene aluminum-ion batteries can potentially replace lithium-ion batteries as they are much cheaper and easier to recycle, and sodium and aluminum are more abundant in nature compared to lithium.

Is Argentina lithium a good stock to buy? ›

1 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Argentina Lithium & Energy in the last twelve months. There are currently 1 buy rating for the stock. The consensus among Wall Street equities research analysts is that investors should "buy" LIT shares.

Who is the largest lithium producer in the United States? ›

1. Albemarle. Mining and chemical producer Albemarle is leading the charge in global lithium output. Among the company's biggest customers is Panasonic (OTC:PCRFY), which manufactures lithium batteries for everything from small consumer electronics to EVs.

Will lithium prices fall? ›

The analysts predict the annual average price of lithium will peak at about $54,000 per metric ton this year—nearly nine times higher than it was in 2020. But they believe the price will quickly drop to $11,000 per metric ton by 2024, which is (merely) double the 2020 price.

What is the best ETF for lithium? ›

Investing in lithium and battery tech ETFs
FundAssets Under ManagementAnnual Fee
Global X Lithium & Battery Tech ETF (NYSEMKT:LIT)$4.6 billion0.75%
Amplify Lithium & Battery Technology ETF (NYSEMKT:BATT)$194 million0.59%
iShares Global Clean Energy ETF (NASDAQ:ICLN)$5.6 billion0.42%
2 more rows
10 Aug 2022

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