In 2022, lithium prices soared to record highs, but the following year posed challenges, witnessing declines in carbonate and hydroxide prices until April. However, the long-term demand outlook for lithium remains positive. Despite these market fluctuations, some lithium stocks experienced significant growth in 2023, and today they’re still steadily thriving in the market. Here are some of the top lithium stock markets to check out if you want to invest in one today:
Atlas Lithium
Atlas Lithium, valued at $356.72 million with a current share price of $32.07 and a year-to-date gain of 358.8%, focuses on developing battery metals projects in Brazil. Notably, its Neves project area within the Minas Gerais hard-rock lithium project is a key focus, with the recent unveiling of the Anitta pegmatite target. The company aims for Phase 1 production to commence by Q4 2024 after fast-tracking environmental permitting in June. Atlas plans to establish a lithium concentrate processing facility capable of producing 300,000 metric tons annually, supported by a $65 million investment from Mitsui. Exploration successes include discovering new high-grade lithium zones and bolstering its team with industry experts. With well-capitalized initiatives and promising exploration updates, Atlas is poised for growth in 2024.
Future Battery Minerals
Formerly Auroch Minerals, Future Battery Minerals (FBM) rebranded in March to emphasize its lithium and nickel focus. With projects like Kangaroo Hills in Western Australia and a claystone project in Nevada, FBM’s share price surged 41.51% in 2023. Exploration updates from Kangaroo Hills and Nevada, showcasing significant lithium discoveries, drove investor optimism. Despite mid-October setbacks and leadership changes, FBM remained committed to expanding its lithium resources. The year concluded with plans for further drilling and a maiden resource estimate for Nevada in Q1 2024.
Sigma Lithium
Sigma Lithium, with a market cap of $3.21 billion and a current share price of $29.27, achieved significant milestones in 2023. Operating through its subsidiary Sigma Brazil, it initiated Phase 1 production of its Grota do Cirilo hard-rock lithium project, reaching 75% of capacity by April. Notably, its Quintuple Zero Green Lithium product, recognized as the “most sustainable lithium in the world,” propelled its market value. Strategic agreements with Yahua and Glencore further boosted its share price. Ongoing exploration aims to expand resources, while Sigma explores acquisition opportunities and plans to list Sigma Brazil on major stock exchanges.
Solis Minerals
Solis Minerals, operating in South America’s exploration sector, focuses on battery metals properties, notably the Estrela and Mina Verhelma lithium projects in Brazil’s Borborema province. The company saw a surge in its share price after announcing plans to acquire the Jaguar hard-rock lithium project, known for high-grade spodumene content. Trading halts and subsequent peaks followed, reaching C$1.04 in July. However, setbacks arose with failed negotiations for Jaguar, leading to withdrawal. Solis then turned to the Mina Verhelma project, initiating drilling programs. Despite initial excitement, share prices declined throughout 2023, ending the year at C$0.14.
Volt Lithium
Volt Lithium, formerly Allied Copper, aims to revolutionize lithium extraction from oilfield brines using its proprietary direct lithium extraction (DLE) technology. With a market cap of C$29.97 million and a current share price of C$0.245, the company experienced significant growth in 2023. Key milestones included the introduction of IES-300 technology, achieving 93% lithium recoveries with reduced costs. The publication of an initial resource estimate for the Rainbow Lake project and successful DLE pilot results further boosted investor confidence. The termination of copper asset agreements in August solidified its lithium focus. The year closed with the commissioning of a permanent demonstration plant and the release of a promising preliminary economic assessment for Rainbow Lake.
Wildcat Resources
Wildcat Resources, an explorer of lithium and gold, concentrates on prime mining regions in Australia, notably the Tabba Tabba lithium-tantalum and Bolt Cutter lithium projects in Western Australia’s Pilbara region. In 2023, its shares surged from AU$0.03 to AU$0.69. This leap followed a binding acquisition deal for the Tabba Tabba project, which hadn’t been explored since 2014. Noteworthy drill results in October, including an 85-meter interval with 1.5% lithium oxide, propelled share prices to an annual peak of AU$0.915. By year-end, shares stabilized at AU$0.695, with ongoing developments indicating continued exploration vigor.
Frequently Asked Questions When Investing in Lithium
Should one invest in lithium?
Yes, you can invest if you have the resources. The recent spike in lithium prices and the subsequent increase in lithium stocks have attracted investor interest. Investors are deliberating whether to enter the market now or wait for a possible decline. Analysts are optimistic about the future of the market, citing the continued success of electric vehicles and the projected steady rise in lithium demand. They anticipate a strong outlook for the lithium market in the foreseeable future.
Where to mine lithium?
Australia and Chile are the top producers of lithium globally, with Australia primarily extracting it from hard-rock deposits and Chile from lithium brines. Chile is part of the Lithium Triangle with Argentina and Bolivia, though their output is lower. China, Argentina, and Brazil also rank among the top five lithium-producing countries.
What is the estimated amount of lithium present on Earth?
The exact total amount of lithium present on Earth is currently unknown. However, according to estimates by the US Geological Survey, global reserves are approximately 22 billion metric tons (MT). Among these reserves, Chile accounts for 9.2 billion MT, while Australia holds 5.7 billion MT.
How to buy lithium stocks?
Investors can access lithium stocks globally through various exchanges using brokers or investment platforms. Before investing, thorough research on companies is crucial, considering factors like financial health and growth prospects. Establishing investment goals and conducting due diligence aligned with financial objectives are essential steps. When selecting a broker or investment app, factors like reputation, fees, and investment approach should be considered.
How to start investing in lithium stocks?
Investors interested in the lithium market have multiple investment options. They can invest in lithium stocks for sector exposure, consider the Global X Lithium & Battery Tech ETF (NYSE: LIT) for diversification, or explore lithium futures for more experienced investment strategies.
Where can you use lithium?
Lithium finds diverse uses across various industries. While its prominence in lithium-ion batteries, powering electric vehicles and electronic gadgets, is well-known, it is also utilized in pharmaceuticals, ceramics, lubricants, grease, and heat-resistant glass. However, it’s primarily the burgeoning electric vehicle sector that is driving its demand.
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