Investing in the most promising lithium stocks can be incredibly lucrative over the long term. The rise in popularity of electric vehicles has resulted in surging demand for lithium. Not only is it a critical element in powering the EV revolution, but it also has massive utility in multiple industries. Overall, investing in lithium stocks presents a desirable option for those looking to gain from this industry’s monstrous growth potential.
Additionally, increased demand for lithium has led to a price surge over the past few years. Moreover, industry analysts remain optimistic that a slowdown in the Chinese market will ease prices slightly in the coming year while still supporting high demand.
Furthermore, the global lithium market will likely experience significant growth in the foreseeable future. According to Grand View Research, the sector is projected to grow at a CAGR of 12% between 2022 and 2030.
For those looking to capitalize on this growth, these lithium stocks are worth a look.
| LAC | Lithium Americas | $25.23 |
| LITM | Snow Lake Resources | $2.37 |
| GNENF | Ganfeng Lithium Group | $9.22 |
| RIO | Rio Tinto | $79.35 |
| PILBF | Pilbara Minerals | $3.41 |
| PLL | Piedmont Lithium | $68.64 |
| LTHM | Livent | $25.92 |
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) is among the top lithium stocks to invest in for the long haul. The firm has sufficient liquidity, and its fundamentals are supported by a number of significant strategic assets.
Notably, the company’s operations in Argentina and Nevada are advancing toward production. Its crown jewel is the Thacker Pass Project in Nevada, which is reportedly the largest known deposit of its kind in the U.S. Accordingly, with these resources under its belt, LAC is well on its way to becoming an industry leader in this sector.
Indeed, the importance of Thacker Pass should not be overlooked, as LAC is in the perfect position to take full advantage of the federal government’s investment in the lithium sector to support domestic EV production. Thus, investors are presented with a long-term investment opportunity in LAC stock at current levels.
Snow Lake Resources (LITM)
Snow Lake Resources (NASDAQ:LITM) is a leading mineral exploration firm in Winnipeg, Canada. It boasts a whopping 59,587 acres of land, of which a mere 1% has been explored. Amazingly, the company has found that this small percentage of its overall acreage contains 11.1 million metric tonnes of lithium. Needless to say, the firm has a tremendous upside based on its potential reserves.
Snow Lake plans to produce 160,000 tonnes of 6% lithium a year from 2025, which should be enough material to manufacture five million EV batteries over ten years. This incredibly impressive output will ensure that the company remains a driving force in the rapidly-growing EV market. Currently, Snow Lake is not generating revenue. However, the company’s long-term prospects remain bright, considering future demand resulting from electrification over time.
Ganfeng Lithium Group (GNENF)
Ganfeng Lithium Group (OTCMKTS:GNENF) is a leader in lithium battery technology, boasting comprehensive expertise covering every process in the lithium supply chain. Its dedication to all facets of the lithium battery supply chain makes this company a standout in the sector.
China is leading the charge in electric vehicle adoption worldwide, with its share of global EV sales exceeding 60% last year. At the forefront of this revolution is Ganfeng, which is China’s largest lithium metal producer.
The firm has plans to increase its production capacity by 500% relative to 2021 levels through 2030. This will result in the company producing 600,000 tonnes of lithium carbonate equivalent a year. Accordingly, with an ambitious outlook and stellar top- and bottom-line growth, Ganfeng can become a significant player in the EV sector.
Rio Tinto (RIO)
Rio Tinto (NYSE:RIO) is a more mature and reliable metals and mining player. The company deals in some of the most sought-after resources in the world, including copper and other minerals such as lithium. Additionally, its lithium business unit has been gaining attention for its vast potential to support the global rollout of EVs. Still, the sheer variety of resources produced by Rio Tinto ought to be enticing for commodities investors.
Furthermore, the firm’s impressive dividend yield of 8.6% demonstrates the company’s commitment to ensuring that shareholders benefit from its success. Rio Tinto investors enjoy rock-solid financials, with a stable balance sheet and strong profitability margins. Additionally, the company’s gross profit and EBITDA margins have grown impressively over the past five years, signaling operational excellence from its team.
Pilbara Minerals (PILBF)
Pilbara Minerals (OTCMKTS:PILBF) is an Australian lithium and tantalite mining giant. This company is Australia’s leading lithium exploration mining company overall.
Located in Australia’s resource-rich Pilbara region, the company plays a massive role in Australian mineral production. Additionally, with two fully operational projects currently underway and plans to expand further via a joint venture with POSCO Holdings and an off-take agreement with Ganfeng Lithium, Pilbara is set to become an even bigger force on the global stage.
Pilbara Minerals had an incredibly successful fiscal year in 2022, achieving rapid revenue and profit growth to end the year with a cash balance of over $400 million. This phenomenal growth can be attributed to their well-positioned products taking advantage of the global push towards electrification in transportation. Indeed, while PILBF stock has gained over 55% in the past year, I think this stock is poised for even more significant gains over time.
Piedmont Lithium (PLL)
Piedmont Lithium (NASDAQ:PLL) is uniquely positioned to be a leader in the lithium hydroxide industry with projects across the U.S., Quebec, and Ghana. The company operates in the lucrative Carolina Tin Spodumene Belt, providing one of the most affordable sources of lithium hydroxide. Additionally, the company’s convenient production locations, which are relatively close to high-growth EV supply chains, positions the company well to take market share in this high-growth space.
Piedmont Lithium recently achieved a significant milestone, being selected for a $141.7 million grant from the U.S. Department of Energy. It’s one of the first projects to be funded by the President’s Bipartisan Infrastructure Law which seeks to expand domestic manufacturing of batteries for EVs and electrical grid components. Consequently, analysts at Refinitiv estimate that PLL stock offers a fantastic 65% upside from current price levels.
Livent (LTHM)
Last on this list of lithium stocks to buy is Livent (NYSE:LTHM). Indeed, this company is an impressive global player in the lithium market, with 17 offices and manufacturing facilities worldwide. Its largest site is in North Carolina, but the focus is on Argentina, where th company willsoon embark on the next phase of carbonate capacity expansion. Commercial production is predicted to launch by 2023.
Livent Corporation is setting ambitious goals and taking giant strides to reach them. Accordingly, the company is expanding in three key regions. As production grows in Argentina, China, and Canada, Livent also predicts 15,000 tonnes of production from its Chinese operations by late 2023. Additionally, this is a lithium producer with an abundant 30-year expected mine life in Quebec by 2026.
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On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.