Top 10 Best Lithium Stocks For 2023

Jenna Lofton, the founder of StockHitter.com, has been actively trading stocks and investing for nearly 11 years. More than just the make of usual batteries we buy from the store, Energizer also produces lithium batteries for industry use as well. It is one of the largest producers of lithium in the world, seeing $505 million in revenues from the chemical in 2019.

• Soaring demand for a material used in the manufacture of a product doesn’t automatically equate to higher sales and profits for a company.
• When fully operational, the company projects that it will produce 60,000 metric tons of annual lithium hydroxide production.
• As illustrated below, the demand for EV batteries is expected to surpass the global supply of batteries this year, and an equilibrium is not expected to be seen through 2030.
• LAC’s South American brine operation secured sufficient funding to bring the project to commercial production (financial de-risking).

Check out Wall Street’s average, highest and lowest price targets for LAC on TipRanks. The other will be Lithium Americas (NewCO), a North America-focused lithium firm that will own the Thacker Pass lithium project in Humboldt County, Nevada, as well as LAC’s other North American investments. That separation, which will create two separate companies from LAC’s North American and Argentine business units, will likely occur later this year. BMO Capital analyst Joel Jackson believes that the stock has even more upside potential as it expands production and could be a potential acquisition target. Out of 17 analysts covering ALB in the past three months, nine are bullish on the stock.

Alpha Lithium

But despite the ramp-up in usage and value, lithium remains a volatile and controversial mineral for investments. Lithium mining is a dirty and expensive process, outstripping the environmental hazards of fracking. MarketBeat just released its list of 10 cheap stocks that have been overlooked by the market and may be seriously undervalued. If you want to focus on EV battery manufacturers, Asia presents the best investment opportunities as this region dominates the EV battery market by a country mile. Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

• Beyond lithium, Albemarle produces bromines and catalysts used in several industries.
• That separation, which will create two separate companies from LAC’s North American and Argentine business units, will likely occur later this year.
• Lithium prices are rising as the industry is struggling to keep up with the demand, and this creates a strong platform for lithium producers to thrive in the next decade.

Shrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015. Prior to writing about the world of finance, Shrilekha worked as how to calculate lot size forex an equity research analyst for a bulge-bracket client in investment banking, Credit Suisse. Her sole objective is to help investors make better and informed decisions.

Lithium prices are notoriously fickle since a global spot price is difficult to agree on. As a result, futures trading is always risky, even with less volatile commodities like gold or oil. Lithium prices fluctuate wildly, so novice investors likely won’t want to dive into futures. The company is the second-largest lithium mine based on its proven and probable reserves, showcasing a bright future for Lithium Americas.

What are lithium stocks?

Lithium is a metal that is currently valued chiefly for its use in electric vehicle (EV) batteries. This metal helps create lightweight, power dense batteries, which give EVs a long range of motion before having to charge again. LTHM is growing fast, based on big plans, which include more than $1 billion in capital spending to expand capacity in its Argentina operations through 2026.

At the end of the fourth quarter of last year, 4 hedge funds held stocks in PPL and the shares have rallied more than 600% over the last 12 months alone. The company aims to become a strategic domestic supplier of lithium hydroxide and other chemicals to the growing electric vehicle and lithium battery storage markets. Many fortunes have been made by simply sitting back and letting compound interest work, but lithium investments are based on a volatile commodity and require more stringent monitoring. Volatile stocks like lithium companies’ stock could crash into your investment parameters quicker than anticipated, so abide by the buy and sell rules developed in your investment plan. Following the procedure will allow you to cut losing stocks quickly or add to your winners.

Company Descriptions

ChargePoint is on a growth path in both North America and Europe that has shown it can successfully grow its footprint geographically, too. Our partners cannot pay us to guarantee favorable reviews of their products or services. We believe everyone should be able to make financial decisions with confidence. Late last year, the company announced the acquisition of Arena Minerals in an all-stock deal valued at $227 million based on the Dec. 19, 2022, closing price. Once the transaction is complete, Arena Shareholders will own approximately 5.7% of Lithium Americas.

However, it’s notable that no analysts were downgrading the stock itself. In fact, 19 out of 15 analysts give the stock either a “Strong Buy” or “Buy” rating. Secondly, the shift toward electric vehicles (EVs) is hitting a plateau. But for EVs to become more mainstream, how to buy harmony more charging infrastructure and battery technology advancements are needed . One reason points to the weak economy in China, the leading market for lithium. It’s causing Chinese battery makers to cut back on demand from the country’s lithium producers.

Best Lithium Stocks Of October 2023

All of these companies have very good balance sheets, so much so that you can bet high on their stocks and know that they’ll be able to recover from a bad run. Second, it means that the potential returns on these investments are very high as well. Lithium might not necessarily be an element that comes first in one’s mind as a great source of investment, but the truth of the matter is it’s an element that is essential in a vast number of industries.

Livent is a pure-play lithium producer, and the company is known for its low-cost production of carbonate, especially in Argentina. 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 penny stocks explained who want to invest in lithium mining companies’ stocks can trade lithium futures in a few different places. For U.S. investors, the CME Group allows the trading of lithium futures contracts. Contracts are based on the spot price of lithium hydroxide monohydrate in North Asia (China, Japan and South Korea).

Although back down a bit now, share prices reached a new high in May of this year. The company has two current projects, with one in Arkansas and the other in Southern California. Standard Lithium is leading the charge in a new wave of lithium extraction with a current market cap of $1.031 billion. This U.S.-based chemical manufacturing company is a well-known manufacturer and distributor of lithium chemicals. While battery production is one of lithium’s core uses, it’s a versatile mineral in many industries.

And if Albemarle can make good on its increased earnings guidance of $25 to $29.50, that may be a low estimate of the opportunity in one of the best lithium stocks to own. In financial matters, the company garnered $82 million in revenue by the end of the fourth quarter of 2020. There are currently over 20 hedge funds investing in Livent Corporation with Joho Capital increasing its shareholdings by more than 70%. As more realize the financial incentives for this commodity, we will likely see more investors jump into the market. This makes lithium stocks one of the groups with the most potential for significant price appreciation in the following years. Options are far more volatile than common stocks since each option entitles the owner to 100 shares should the strike price be reached.