The 7 Best Lithium Stocks to Buy for April 2023 TradingView News India

The market is expected to grow at a compound annual rate of 22.80% from 2022 through 2028 and reach a valuation of $149.2 billion by the end of the forecasted period. More importantly, the long-term growth prospects for select lithium stocks still look bright. Demand for lithium to make batteries for electric vehicles has been soaring and is projected to continue to be strong for many years. The existing players have plans to further ramp up production and new companies are entering the space, but it generally takes a long time for significant new sources of lithium to come on line. Like investing in any basic materials and metals, investing in lithium isn’t for the faint of heart. Soaring demand for a material used in the manufacture of a product doesn’t automatically equate to higher sales and profits for a company.

Lithium Americas is a development-stage company focused on advancing to the production of a lithium brine operation in Jujuy, Argentina, and a sedimentary lithium clay project in Nevada, United States. Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed.

Longer-term investors have to consider how to ride out any market ‘noise’ caused by speculators and bank on the move to renewable energy continuing at the current pace. The secret to successful investing is spotting and joining trends, and the lithium market has all the hallmarks of one that could run for some time. The main thing the company develops is solid-state lithium batteries for electric cars. They’re seen as a revolutionary green solution to the current car and fossil fuel industry. A testament to their popularity is the fact that by the end of last year, the company had 35 hedge funds investing in the.

South American lithium corporation Sociedad Quimica y Minera de Chile has increased its lithium investments lately. SQM is profitable with lithium assets in both brine and rock forms. Livent Corp. signed an agreement with Tesla to increase the volume of its supply in 2021 and analysts expect the partnership to extend through 2022. If there’s an explosive EV boom, as forecasted, it could be one of the major beneficiaries too.

It has opened new processing plants and expanded its operations in China, Chile, Australia and the US. It also expects to shortly complete the realignment of the core Lithium and Bromine businesses into Energy Storage and Specialties segments. This, along with the shift happening in the rest of the world for cleaner vehicles, means that the demand for lithium batteries will only increase in the coming years. In a global scope, FMC is one of the most highly valued lithium stocks in the entire world. Collectively with Sociedad Química y Minera and Abermarle, produces about half the world’s total lithium and lithium storage.

But I believe Rio could be a great way for me to capitalise on soaring raw materials demand over the longer term. Zinnwald Lithium is named after a gigantic lithium asset in East Germany where output is due to begin next year. Pleasingly, the project is located on the doorstep of some of the world’s largest automakers like Volkswagen, BMW, and Porsche. This gives it a huge advantage over many other lithium-producing stocks. Remember though that any mine development issues could cause profit forecasts to sink and potentially lead the company to embark on additional fundraising.

#3: Atlantic Lithium

Piedmont Lithium, Inc is an exploration stage company, which engages in the exploration and development of mineral properties. The firm focuses on developing and manufacturing battery quality lithium hydroxide for the electric vehicle industry. Between 8% and 9% of all cars sold around the globe in 2022 were totally battery electric, it was a slight increase from 2021. Predictions for the percentage of electric vehicles in new car sales in 2030 vary from around 30% to 45%.

A familiar name for western investors, Albemarle is world leading producer of lithium. The US company has a mixture of brine and hard-rock mining operations in Chile, Australia and the US, and makes both lithium carbonate and hydroxide. The second is that lithium is difficult and time-consuming to mine, with new mines taking up to ten years to begin extraction. While corporations worldwide are trying to set up their own mining and processing operations.

You might not know which team will emerge victorious but you do know the matchup will generate tremendous popularity. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances.

Best Lithium Stocks to Buy in 2023

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. Others not listed are either very small, have witnessed major stock price declines, or are in major financial distress. While the company has reported negative EPS and negligible for more than 10 years, analysts are projecting positive EPS of $1.01 per share in 2023 and an estimated $307 million in sales. Analysts expect sales to increase sevenfold in 2023 on a year-over-year basis, from $17 million to $127 million.

And the supply still has to increase at a compounded annual growth of 19% over the next six years to meet estimated lithium requirements in 2025. Given the company’s financial strength, the mining projects could start producing battery-grade lithium by 2024, making Rio a major supplier to European car factories. The company is also extracting lithium from century-old mining waste, which is much more sustainable than regular mining methods.

Investing in Lithium: Top Lithium Stocks in the UK

All of these https://1investing.in/ 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. The share prices will most likely rise in time, so you have the added protection of a rising stock price. Sociedad Quimica y Minera is setting aside $3.4 billion in new capital expenditures to boost production capacity to 210,000 tonnes of lithium carbonate after posting impressive earnings. If you want complete control over which companies you’re investing in, individual stocks, while riskier, may be more attractive to you.

Instead, traders can get exposure by investing in publicly traded lithium firms. Lithium stocks are basically the shares​ of brands that engage in the mining or processing of lithium. All five analysts covering LAC in the past three months are bullish on the stock.

Your options for investing in lithium or the EV market are slightly limited. This could translate to a rise in lithium prices and an increase in stock prices for companies well-positioned in the industry. Graphite markets are more robust than they have been in recent years. Demand for flake graphite in the electric vehicle battery industry is expected to increase by more than 35% by 2022.

• Production is expected to begin at Grota do Cirilo by April of this year.
• Km portfolio is strategically located in the Ivory Coast and Ghana, with established routes of trade to Europe.
• This mineral, therefore, could make US Antimony one of the leading suppliers for a market that could grow by almost 20% from 2020 to 2027.

When choosing stock splits and stock dividends stocks, one decision is whether you want to invest in lithium startups or more established companies. Piedmont is a development-stage lithium miner that’s earlier in the process of developing its resources than Lithium Americas. It currently is working on U.S. lithium mining projects in North Carolina and Tennessee, as well as abroad in Canada and Ghana. Albemarle Corporation tops our list of best lithium stocks for several reasons. This company specializes in producing and manufacturing lithium compounds.

The company has set up its project in Southern Arkansas, where they do lithium extraction on 150,000 acres. It has four mineral properties, including Grota do Cirilo, Sao Jose, Santa Clara and Genipapo. Overall, Allkem recorded total revenues of $265 million in its fiscal second quarter, while its gross operating cash margin stood at 82%. Sociedad Química y Minera de Chile has also purchased and developed a new plant in China that will be able to produce around 30,000 metric tons of lithium hydroxide. Share prices have only recently leveled off but still sit 45% higher than last year.

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Also, the company is focused on investing in high-return projects to drive productivity. Undoubtedly, the company is well-positioned to benefit from the upsurge in the battery-grade lithium demand. Being an investor, you can invest in lithium mining shares, stocks of companies involved in lithium mining, and lithium battery stocks, presenting companies that make lithium-ion batteries. As the demand for lithium continues to ramp up and cause higher prices, analysts maintain their belief that OROCF is one of the best lithium stocks out there. This is evidenced in the consensus Moderate Buy rating and $11.40 price target, representing implied upside of 45%. One of the largest producers of lithium, Lithium Americas Corporation is ranked tenth in our list of 11 best lithium stocks to buy now.

This is one reason why there is a growing consensus that hard-rock lithium operations are more suitable for supplying the electric vehicle market. Passenger and commercial electric vehicles continue to be the main uses of Li-ion batteries in terms of capacities installed, followed by stationary storage. Livent Corp’s primary project is a brine deposit in Salar del Hombre Muerto in Argentina, which has been up and running for over 20 years. However, lithium is at the heart of its ‘aggressive growth’ strategy and it is the fastest growing and highest margin segment of Albemarle’s business.

Piedmont Lithium is a company that focuses on the exploration and development of lithium and other mineral properties. Lithium has become increasingly popular due to the booming electric vehicle industry. As an example, the company will be the largest source of lithium supply in Europe for at least the next 15 years. This includes investment in assets related to lithium, copper, among others. The balance sheet healthy gives the company scope to make big investments.