ASX lithium stocks, Best Lithium Stocks Asx, Lithium shares to buy in 2024
Did you know most of the lithium are used to makebatteries? Rechargable battery for mobiles, laptops, cameras and electrical vehicle industries would be nothing without lithium stocks. Lithium is a key component of batteries used in electric vehicles and energy storage systems, making it a critical resource in the renewable energy industry. The Australian Securities Exchange (ASX) plays a significant role in the global lithium market, with several top ASX lithium stocks listed on its exchange.
In this article, we will provide an overview of the best lithium stocks to buy in Australia. Moreover we’ll discuss why to invest in in them aND spotlight the criteria, key factors, risk and challenges to consider when investing in ASX lithium stocks. Let’s talk about 10 Best Lithium stocks ASX tobuy in2023.
Page Contents
- 1 ASX Lithium Stocks: An Overview
- 2 Factors To Consider When Investing in ASX Lithium Shares for Long Term
- 3.1 1. Pilbara Minerals Limited (ASX:PLS)
- 3.2 2. Rio Tinto Ltd (ASX:RIO)
- 3.3 3. Allkem Limited (ASX:AKE)
- 3.4 4. Liontown Resources Limited (ASX:LTR)
- 3.5 5. De Grey Mining Limited (ASX: DEG)
- 3.6 6.Leo Lithium Limited (ASX: LLL)
- 3.7 7. Mineral Resources Limited (ASX:MIN)
- 3.8 8. Sayona Mining Limited (ASX:SYA)
- 3.9 9. Core Lithium Ltd (ASX:CXO)
- 3.10 10.Global Lithium Resources Ltd (ASX: GL1)
- 4 Why Invest In ASX Lithium Stocks?
- 5 Future Of Lithium Stocks
- 6 Risks And Challenges Of Investing In ASX Lithium Stocks
- 7 How to Buy Lithium Shares in Australia
- 7.0.1 Step 1: Choose a Brokerage Account
- 7.0.2 Step 2: Fund Your Account
- 7.0.3 Step 3: Research Lithium Companies
- 7.0.4 Step 4: Place Your Order
- 7.0.5 Step 5: Monitor Your Investment
- 8 Small Cap Lithium Stocks ASX
- 9 What This YouTuber says about ASX Lithium Stocks
- 10 FAQOn Lithium Stocks ASX
- 10.1 Is lithium a good investment?
- 10.2 What are the best Small cap lithium stocks asx?
- 10.3 How high will lithium stocks go?
- 11 Conclusion
ASX Lithium Stocks: An Overview
The global lithium market is witnessing remarkable growth, driven by the increased adoption of electric vehicles and the rising demand for renewable energy storage. As governments worldwide prioritize decarbonization, the need for lithium stocks has skyrocketed. According to industry experts, the lithium market is expected to expand significantly in the coming years, creating a favorable investment environment.
Several factors should be considered when evaluating ASX lithium stocks. Here are some factors to look at before you invest.
Industry Trend: The lithium industry is expected to boom in future as electric vehicle demands continue to rise, so lithium companies are expected to capitalize on these opportunities during the surge of stock prices.
Market capitalization: This is an important factor, as it reflects the size and scale of the company. Market cap should be at least more than $1 Billion. The higher the market cap, the lower risk and volatility in stock.
Revenue growth: It is another important factor, as it indicates the company’s ability to generate revenue and profits. Profit margin should be at least 10% higher considering last two year performance.
Stock Price YTD: Investors should keep an eye on year to date hike in the stock price percentage for better understanding of the stock performance.
Production capacity: Production capacity is also important, as it reflects the company’s ability to meet demand for lithium. Simply you can choose lithium company having capacity of producing more than 100,000 tonnes per annum.
Best Lithium Stocks ASX that Could Explode In 2022 & 2023
Lithium Stock price fluctuates on daily basis. It is a long term investments so we have summarized these 10 Best Lithium Stocks based on various factors so that Investors could use informed decision and easily make their mind before investing.
| Company Name | Ticker | Market Cap | Stock Price | 52 Week High | 52 Week Low |
|---|---|---|---|---|---|
| Pilbara Minerals Limited | PLS | $15.35b | $5.12 | $5.66 | $2.36 |
| Rio Tinto Ltd | RIO | $167.24b | $117.85 | $128.78 | $87.60 |
| Allkem Limited | AKE | $10.40b | $16.31 | $17.04 | $9.32 |
| Liontown Resources Limited | LTR | $6.23b | $2.83 | $3.20 | $0.88 |
| De Grey Mining Ltd | DEG | $2.34b | $1.50 | $1.72 | $0.74 |
| Leo Lithium Limited | LLL | $1.12b | $1.14 | $1.28 | $0.39 |
| Sayona Mining Limited | SYA | $1.76b | $0.18 | $0.38 | $0.14 |
| Core Lithium Ltd | CXO | $1.75b | $0.94 | $1.88 | $0.72 |
| Global Lithium Resources Ltd | GL1 | $446.95m | $1.72 | $2.94 | $1.02 |
1. Pilbara Minerals Limited (ASX:PLS)
Market Cap: $15.35 Billion (as of July,2023)
Stock Price YTD: +41.44% (as of July,2023)
Production Capacity: 600,000 to 680,000 MTPA
Pilbara Minerals is a lithium and tantalum producer in Western Australia. The company owns and operates the Pilgangoora Lithium-Tantalum Project, which is one of the largest lithium ore deposits in the world. Recently the company has approved a $375 million investments on P1000 project for producing spodumene concentrate (High Purity lithium ore). The Pilangoora project is expected to produce more than 680,000 tonnes of hard rock lithium per annum. Apart from that P680 project has a capacity of 580,000 tonnes per annum, this means Pilbara Minerals has resources to boost its production capacity and capitalize on the growing demand of lithium products in coming years.
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Our Opinion: The Pilbara minerals (ASX:PLS) has a market cap of $15.35 billion AUD and it has long history in the lithium sector since its foundation. It has shown a stellar performance since last year and has jumped around 109.84% in its stock price by reaching an all time high value of $5.42 AUD. This shows a great potential as the stock price is increasingly exponentially also it is expected to move in upward trajectory in future as the company eyeing to invest upon other small cap lithium projects which makes it a key player in lithium production.
2. Rio Tinto Ltd (ASX:RIO)
Market Cap: $167.24 Billion (as of July,2023)
Stock Price YTD: +2.10% (as of July,2023)
Production Capacity: 150,000 to 565,500 MTPA
Rio Tinto Limited (ASX:RIO) is one of the largest mining in Australia. The company has invested in several lithium projects and operating in Serbia and Argentina. Recently the company announced a investment of $2.4 billion in the Jadar Valley project as per Mining Technology.
Rio Tinto also has invested a whopping $825 million in Rincon Lithium Project of Argentina. It is one of the oldest company with the highest market capitalization among all other Australian lithium producers. With the Jadar valley lithium project, it could become the largest lithium producer in Europe by the end of 2027. The stock price is steadily growing since the start of 2023 which shows a positive sign for investors.
They are extracting a variety of metals and minerals apart from lithium which includes iron ore, copper, uranium etc. So it could be a great opportunity for those who are looking to invest in metal stock also eyeing upon other minerals as well.
3. Allkem Limited (ASX:AKE)
Market Cap: $10.40 Billion (as of July,2023)
Stock Price YTD: +47.74% (as of July,2023)
Production Capacity: 16,000 to 17,500 MTPA
Allkem limited formerly known as Orocobre is a lithium miner and producer with operations in Argentina. The company operates the Olaroz Lithium Facility, which is one of the largest lithium brine operations in the world. The company boasts an impressive portfolio of lithium projects, with a particular emphasis on sustainable and environmentally friendly practices. With its expertise in lithium extraction and processing, Allkem Limited aims to not only meet the surging demand for lithium but also contribute to the global shift towards clean energy solutions. Investors seeking exposure to the lithium market should keep a close eye on Allkem Limited’s innovative projects and strategic advancements in the sector.
The stock price has increased more than 47% since the start of the year, with Livent and Allkem combining in a deal of $10.6 Billion deal, this could be a great opportunities for investors looking to gain exposure in lithium companies.
Also explore: Top 5 Australian lithium stocks to invest in 2024
4. Liontown Resources Limited (ASX:LTR)
Market Cap: $6.23 Billion (as of July,2023)
Stock Price YTD: +130.08% (as of July,2023)
Production Capacity: 150,000 to 200,000 MTPA
Liontown Resources Limited is an Australian lithium exploration and development company with a focus on the Kathleen Valley Lithium-Tantalum Project in Western Australia. The project has a significant resource base and is located in a region with good infrastructure, making it an attractive location for potential investors.
Liontown Resources has recently completed a scoping study for the project, which indicates strong economic potential and a long mine life. The company has also secured offtake agreements with major lithium producers, providing a strong foundation for the development of the Kathleen Valley Lithium-Tantalum Project. Overall, Liontown Resources is a promising investment opportunity for those interested in the lithium industry.
5. De Grey Mining Limited (ASX: DEG)
Market Cap: $2.34 Billion (as of July,2023)
Stock Price YTD: +11.48% (as of July,2023)
De Grey mining ltd (ASX: DEG) is one the Australian mining exploration company focused on lithium and gold extraction. The company has mainly focused on gold exploration, however they have confirmed the presence of high grade lithium ores. The stock price has grown strongly as compared to other lithium companies in Australia.
6.Leo Lithium Limited (ASX: LLL)
Market Cap: $1.12 Billion (as of July,2023)
Stock Price YTD: +132.65% (as of July,2023)
Production Capacity: 500,000 to 831,000 MTPA
Leo Lithium Limited is an emerging player in the lithium mining sector based in Australia. The company is dedicated to the exploration and development of lithium assets, capitalizing on the growing demand for lithium-ion batteries in the renewable energy and electric vehicle industries. Leo Lithium’s primary focus is on its flagship project, the Mt Cattlin Lithium Mine, located in Western Australia. With a strong commitment to sustainability and responsible mining practices, Leo Lithium aims to contribute to the clean energy transition while delivering value to its shareholders. The company’s strategic vision and expertise position it as a promising contender in the global lithium market.
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7. Mineral Resources Limited (ASX:MIN)
Market Cap: $14.06 Billion (as of July,2023)
Stock Price YTD: -3.06% (as of July,2023)
Production Capacity: 500,000 to 650,000 MTPA
Mineral Resources is a mining services company with a focus on lithium and iron ore. The company owns and operates the Wodgina Lithium Project in Western Australia. As one of Australia’s leading mining services companies, Mineral Resources has expanded its operations to include lithium production and exploration. The company owns and operates the world-class Mount Marion Lithium Project, located in Western Australia, which has a substantial resource of spodumene, a key mineral used in lithium-ion batteries.
8. Sayona Mining Limited (ASX:SYA)
Market Cap: $1.76 Billion (as of July,2023)
Stock Price YTD: -7.89% (as of July,2023)
Production Capacity: 200,000 to 250,000 MTPA
Sayona Mining ASX is a lithium exploration and development company with a focus on the Authier Lithium Project in Quebec, Canada. The company also has a joint venture with Piedmont Lithium for the development of the Tansim Lithium Project in Quebec.With a strong commitment to sustainable practices, Sayona Mining aims to not only meet the global demand for lithium but also contribute to a cleaner and greener future. By leveraging its expertise and strategic partnerships, Sayona Mining Limited is poised to play a crucial role in the advancement of lithium stocks.
9. Core Lithium Ltd (ASX:CXO)
Market Cap: $1.75 Billion (as of July,2023)
Stock Price YTD: -6.4% (as of July,2023)
Production Capacity: 160,000 to 175,000 MTPA
Core Lithium Ltd is an Australian lithium exploration and development company with a focus on the Finniss Lithium Project in the Northern Territory. The project is located in a region with good infrastructure and is close to major markets, making it an attractive location for potential investors. Core Lithium has recently completed a feasibility study for the project, which indicates strong economic potential and a long mine life. The company has also secured offtake agreements with major lithium producers, providing a strong foundation for the development of the Finniss Lithium Project. Overall, Core Lithium is a promising investment opportunity for those interested in the lithium industry.
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10.Global Lithium Resources Ltd (ASX: GL1)
Market Cap: $446.95 Million (as of July,2023)
Stock Price YTD: -1.99% (as of July,2023)
Production Capacity: 130,000 to 180,000 MTPA
Global Lithium Resources Ltd is a prominent player in the lithium mining industry, dedicated to the exploration and development of lithium deposits worldwide. With a focus on sustainable practices, Global Lithium Resources aims to meet the growing demand for lithium, a critical component in electric vehicle batteries and renewable energy storage systems. The company’s extensive portfolio includes lithium projects in key regions such as Australia, South America, and Europe. By leveraging advanced technologies and strategic partnerships, Global Lithium Resources strives to position itself as a leading supplier of lithium, contributing to the global shift towards clean and sustainable energy solutions.
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Why Invest In ASX Lithium Stocks?
Lithium is a key component in the manufacturing of batteries for electric vehicles, smartphones, and other electronic devices. With the increasing demand for electric vehicles and renewable energy storage, the demand for lithium is expected to rise in the coming years. This makes investing in lithium stocks a potentially profitable opportunity for investors.
One of the main reasons to invest in lithium stocks is the growing demand for electric vehicles. As more and more countries set targets to phase out petrol and diesel vehicles, the demand for electric vehicles is expected to rise significantly. Lithium-ion batteries are the most common type of battery used in electric vehicles, and this trend is expected to rise in the future.
Another reason to invest in lithium stocks is the increasing demand for renewable energy storage. As countries shift towards renewable energy sources, such as wind and solar power, there is a growing need for energy storage solutions. Lithium-ion batteries are an important component of these solutions, as they can store energy during times of excess production and release it during times of high demand.
Furthermore, the supply of lithium is limited, with the majority of production concentrated in a few countries such as Australia, Chile, and Argentina. This limited supply and increasing demand for lithium make investing in lithium stocks a potentially profitable opportunity for investors.
Future Of Lithium Stocks
Looking ahead, the lithium market is expected to witness continuous growth and innovation. Emerging technologies and regulatory developments will play a significant role in shaping the lithium industry landscape. Investors should keep a close eye on trends such as lithium recycling, solid-state batteries, and government policies supporting clean energy transitions. These trends have the potential to impact the performance of lithium stocks in the coming years.
Risks And Challenges Of Investing In ASX Lithium Stocks
Investing in Australian lithium stocks is not without its risks and challenges. Market volatility is a significant risk, as lithium stocks can be highly sensitive to changes in market conditions. Regulatory changes, such as changes in government policies or regulations, can also impact the performance of ASX lithium stocks . Technological advancements, such as the development of new battery technologies, could also impact the demand for lithium. So these are the potential risks and challenges, investors should keep in mind while invest.
There are many ways to buy lithium shares in Australia about which, we’ve explained in step by step in details.
Step 1: Choose a Brokerage Account
The first step in buying lithium shares in Australia is to choose a brokerage account. A brokerage account is an online platform that allows you to buy and sell shares in companies listed on the Australian Securities Exchange (ASX). There are several brokerage accounts to choose from, including CommSec, CMC Markets, and IG Markets. When choosing a brokerage account, consider factors such as fees, trading tools, and customer support.
Step 2: Fund Your Account
Once you have chosen a brokerage account, you will need to fund your account. Most brokerage accounts allow you to fund your account using a bank transfer or credit card. Some brokerage accounts may also allow you to fund your account using other payment methods, such as PayPal or BPAY.
Step 3: Research Lithium Companies
Before buying lithium shares in Australia, it is important to research the companies you are interested in investing in. Consider factors such as the company’s market capitalization, revenue growth, and production capacity. Additionally, research recent news or developments that could impact the company’s future prospects.
Step 4: Place Your Order
Once you have researched lithium companies and determined which ones you want to invest in, you can place your order. Most brokerage accounts allow you to place a buy order online. When placing your order, consider factors such as the number of shares you want to buy, the price you are willing to pay, and the time frame for your investment.
Step 5: Monitor Your Investment
After you have bought lithium shares in Australia, it is important to monitor your investment. Keep track of the company’s performance and any news or developments that could impact the company’s future prospects. Additionally, consider setting up alerts or notifications to stay informed of any changes in the market or the company’s performance.
Small Cap Lithium Stocks ASX
Investing in lithium stocks can be a smart move for investors looking to capitalize on the growing demand for electric vehicles and renewable energy storage.
These are some of the best Small cap lithium stocks asx to keep on watchlist because we expect a huge price surge in the lithium share price by the end of 2025.
1.Lithium Australia Ltd (ASX:LIT)
2. Metals Australia (ASX:MLS)
3. Tambourah Metals (ASX: TMB)
What This YouTuber says about ASX Lithium Stocks
FAQOn Lithium Stocks ASX
Is lithium a good investment?
Yes Lithium is a good investments as the rising demand for lithium-ion batteries in electric vehicles and renewable energy storage has made lithium a compelling investment opportunity. With its unique properties, lithium is a crucial component in the production of these batteries. As the world moves towards cleaner energy solutions, the demand for lithium is expected to soar. So investment in lithium stocks could generate investors a wonderful profits.
What are the best Small cap lithium stocks asx?
If you’re looking to invest in the Australian lithium market, it’s essential to consider the best small-cap lithium stocks on the ASX.Lithium Australia Ltd (ASX:LIT) and Metals Australia (ASX:MLS) are two of the best small cap lithium stocks to buy. By investing in these small-cap lithium stocks, you can potentially ride the wave of the clean energy transition while diversifying your investment portfolio. With careful research and analysis, you can make informed decisions and capitalize on the promising prospects of the Australian lithium market.
How high will lithium stocks go?
As the demand for electric vehicles and renewable energy storage systems continues to grow, the lithium market is expected to experience significant growth in the coming years. This has led many investors to wonder how high lithium stocks will go. While it is impossible to predict the exact future performance of lithium stocks, many experts predict that the market will continue to grow as the demand for lithium batteries increases.
Conclusion
In conclusion, the ASX plays a significant role in the global lithium market, with several top lithium stocks listed on its exchange. When evaluatingASX lithium stocks, investors should consider factors such as market capitalization, revenue growth, and production capacity. However, investing in ASX lithium stocks is not without its risks and challenges, and investors should conduct further research and consult with a financial advisor before making any investment decisions.
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