6 Best Lithium Stocks To Buy in 2023

The goal is to create a fund that mimics the success of the lithium market overall. Register for an account to start spread betting and trading CFDs on lithium stocks or ETFs. Understanding the risks of trading with derivatives is important, and can be understood further by reading more about leveraged trading. Once your account is set up, you can purchase shares in the lithium company of your choice. Liontown Resources, although a newer player in the lithium market, has not been shy about making its presence felt. Over the previous year alone, the company’s shares have soared by over 200%, a testament to the promising potential of its Kathleen Valley project.

In other words, lithium is getting more expensive — but one thing is very likely, as lithium gets more expensive, batteries continue to get commoditized placing serious financial pressures on battery manufacturers. 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. Galaxy Resources’ Australian segment operates the Mt Cattlin spodumene mine in Western Australia, and in 2016, it merged with its partner, General Mining Corporation. The Argentinian segment operates the Sal de Vida lithium brine project, which is located in an area that produces more than 60% of global lithium supply.

Can I get consistent income from LAC stock?

With automakers on board, there will be ample demand for lithium in the years ahead. Here’s what you need to know before investing in this basic material used in battery development. Benchmark also releases broader global-weighted average prices for lithium carbonate and lithium hydroxide, plus a lithium price index, all on a monthly basis.

This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all available deposit, investment, loan or credit products. Of course, smaller lithium stocks are worth watching too — to https://cryptominer.services/6-best-cryptocurrency-news-websites/ find out which ones are currently thriving, check out our top lithium stocks article. Tesla is also not the only firm with megafactory ambitions — as Benchmark Mineral Intelligence has pointed out, in 2020, China was building battery megafactories at a rate of one every week.

Company Descriptions

Lithium prices fluctuate wildly, so novice investors likely won’t want to dive into futures. Spodumene is found in low concentrations in pegmatite rock deposits (these are rocks, like granite, that formed millions of years ago in the final stages of the crystallization of magma as it cooled down). Spodumene mines follow traditional drill-and-blast methods that expose unweathered zones of the pegmatite rock ore. The spodumene ores containing about 3 to 5% Li2O  are then processed in neighboring plants into high-grade lithium sludge-like concentrates that are then crated for shipment.

The other two are the Wodinga Lithium Operation, that lies in the Pilbara region, and the Kemerton Lithium Hydroxide plant that is in the South West region. In 1HY23 alone, Mineral Resources made $2.35bn in revenue (up 74%), a $390m NPAT (up 1,890%) and an 18.4% Return on Invested Capital (ROIC). Pilbara Minerals has demonstrated remarkable resilience and growth over the last ten years.

Once you’ve chosen a path, plan a portfolio with securities that can guide you. Options are contracts that derive value from an underlying stock or ETF. When you buy an option, you acquire the right to purchase (or sell) a specific security at a previously agreed-upon price. Call options give investors the right to buy, while put options give them the right to sell. All options have a strike price (i.e., the price at which the contract gains intrinsic value) and an expiration date.

It’s also used in lithium-ion batteries, which power everything from cell phones to laptops to EVs. There’s a bit more uncertainty in this under-the-radar stock, but its five-year performance shows that there may be nice rewards for those who aren’t turned off by the risks. The company is also the single largest taxpayer in Chile, which has prompted recent discussion about the government taking an increased stake. Generally, government ownership is a double-edged sword as it comes with the increased risk of political meddling. Titan will ask you about your goals, financial situation, and risk tolerance to produce a recommendation that’s customized to you.

Avalon Advanced Materials

To build a portfolio of lithium stocks, you’ll first need some capital and a broker. Most prominent lithium companies have stocks located on major brokers, but certain international firms trade through American Depository Receipts (ADRs) or on the OTC markets. Mining companies must extract and refine lithium from the Earth https://crypto-trading.info/how-to-buy-sell-and-trade-cryptocurrencies-2/ to produce lithium. Miners can extract lithium from hard rock or a more liquid substance called brine. As you might assume, this process taxes the environment, so ESG funds exclude many lithium mining company stocks. Additionally, critics of lithium mining cite water and land contamination as threats to local ecologies.

The upbeat outlook regarding LAC stock has further been bolstered by the news late last month that General Motors (GM) announced an equity investment worth $650 million in Lithium Americas. The carmaker will also jointly develop the Thacker Pass mine in Nevada. 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. Sigma Lithium (SGML, $34.23) is a Canadian company with its operations located in Brazil. It has four mineral properties, including Grota do Cirilo, Sao Jose, Santa Clara and Genipapo.

S&P Futures

Morningstar Investor’s stock ratings, analysis, and insights are all backed by our transparent, meticulous methodology. Learn how we are building value for investors by capitalizing on our expertise and success in exploring for metals and alternative fuel materials in Argentina. However, ALB stock is too far below its 200-day line to get constructive here. Last week, Philadelphia-based Livent and Allkem, based in Argentina, announced a merger, creating a $10.6-billion lithium company. That’s still well below valuations of SQM ($20.8 billion) and Albemarle ($24.2 billion). But other opportunities are popping up as lithium prices stage a rebound after a five-month dive.

• You can search any of the stock tickers mentioned in this article on an online brokerage and add them to your portfolio.
• Shrilekha Pethe has been extensively covering and writing about the U.S. financial markets since 2015.
• For example, Tesla’s gigafactory was projected to require over 25,000 tonnes of lithium to reach its target energy output of 35Gwh per year.
• Stock prices can be volatile and susceptible to sharp fluctuations based on the market price of the material being mined and sold.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. LAC stock could be headed for an early entry opportunity, if it can decisively move past its 200-day line while breaking the trend line of lower highs dating back to April 2022. LTHM stock appears to have put in a bottom and is forming a handle with a 26.10 buy point. Sigma Lithium, which just began production in Brazil, has also been the subject of merger speculation, with Tesla (TSLA) among the rumored suitors. Still, Livent-Allkem expects to benefit from greater scale and $125 million in annual synergies tied to proximity of operations in Argentina and Canada.

But investing in a lithium stock-heavy exchange-traded fund, or ETF, can give your portfolio exposure to lithium with less risk. Lithium ETFs include a basket of stocks related to the lithium industry. LIT invests in companies that span the lithium production cycle, such as mining, refining and battery production. https://bitcoin-mining.biz/ufx-universal-flashing-s6a-1140mm-x-1180mm/ You should understand the market, the individual lithium mining companies well, and the factors influencing their performance. It’s also crucial to understand your risk tolerance and investment goals. While lithium stocks offer substantial growth potential, they’re also subject to volatility.

After peaking around $85,500 per metric ton, then bottoming near $23,700, lithium carbonate has recovered to $32,500. The Global X Lithium & Battery Tech ETF (LIT) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index. Blanchard added that she lowered her estimates for battery-grade lithium carbonate, a type of lithium carbonate that is specially synthesized for battery applications, by 10% for FY 2023 and FY 2024. WallStreetZen was created to help everyday investors do more in-depth fundamental analysis in less time. Deckelbaum is referring to the North American Lithium mining operation in Quebec, Canada, in which Piedmont Lithium  has a 25% stake.

Lithium Demand is Robust, but Risk Management is Key to Investment

Growth in demand for lithium is set to accelerate, halting the painful slide in prices that has wreaked havoc on shares of miners and making their stocks attractive again. SQM attributed the weaker-than-expected results to weaker demand, mostly in China, amid a decrease in EV subsidies and high inventory levels across the battery supply chain. Lithium sales volumes fell 15% from a year ago, offsetting significantly higher average sales prices. That separation, which will create two separate companies from LAC’s North American and Argentine business units, will likely occur later this year. Back in December, the company unveiled plans to triple its production to 100,000 metric tons of lithium carbonate annually by 2024. This followed a study at its Grota do Cirilo project in Brazil and the commissioning of this mine.

Albemarle recently made the news with a bid to acquire small Australian pre-production lithium miner Liontown Resources (LINR.F 0.0%). Chile is the world’s second-largest lithium producing country, behind Australia. Lithium is a soft, silver-white metal used in pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass.

• Over the past year, insiders at LAC have not bought or sold any shares.
• The lithium market is attracting investor interest, but where is the best place to start?
• One significant factor is the global shift towards electric vehicle (EVs).
• That’s relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
• The goal is to create a fund that mimics the success of the lithium market overall.

Shares of Piedmont Lithium (PLL,$63.60) have soared more than 41% for the year-to-date, compared to a gain of 4.2% in the S&P 500 Index. The lithium mining company got a boost after the Biden administration’s push for EVs. All five analysts covering LAC in the past three months are bullish on the stock. 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.