Lithium Stocks Asx: Hello, and welcome to another powerful content. This content will help you to get the perfect information regarding Lithium Stocks Asx. Here we will explain about 11 best Lithium stocks to buy in 2022.
Introduction:
Table of Contents
Lithium is very important in the field of technology. It generally helps in powering our mobile phones, laptops, tablets, and vehicles. All these electronic gadgets need Lithium-ion (Li-ion) batteries. So, the demand for Lithium-ion is gradually increasing day by day.
Almost every person has access to a smartphone, tablet, or laptop.
However, EV sales are growing rapidly as many countries phase out gas-powered cars. According to the International Energy Agency report, sales of electric vehicles doubled in 2021.
11 Best Lithium Stocks To Buy In 2022
Lithium stocks fluctuate every day, but you may hold such stocks as a long-term investment. In this article, we have explained the 11 best lithium stocks ASX to buy in 2022.
1. Lithium Stocks Asx | Albemarle (NYSE: ALB)
Albemarle Corporation (NYSE: ALB) is a chemical manufacturing company in Charlotte, North Carolina, United States. In 2021, lithium accounted for 41% of its revenue, the largest of its three specialty chemical divisions.
The company has spread over 100 countries with more than 5,500 employees and it’s one of the largest Lithium producers in the world.
According to ALB’s report, Albemarle is growing strongly. Its quarterly sales exceeded $1.4 billion, and its recently adjusted EBITDA increased by 353%.
Advantages:
- Strong growth in earnings over the past few years
- The company is one of the largest lithium producers in the world.
- The presence of the company around the world.
Disadvantages:
- There were a few quarters in 2021 in which earnings were negative.
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2. Lake Resources Ltd (ASX: LKE)
In 2022, Lake Resources Ltd (ASX: LKE) is our top priority. This company is also on the list of leading Lithium producing companies. After announcing the collaboration with German chemicals company, LANXESS AG, the market is likely to take Lake Resources seriously.
Lake Resources Ltd. has been established around 18 years ago, but the company started gaining popularity in 2018. The management of the company sold out its assets in 2012 when they realized that its brine extraction technology won’t work.
After five years, Lake Resources successfully brought back the brine assets. A brine extraction process is exactly what OTOCORB did to become one of the largest lithium producers in Australia with a market cap of AU $1.25 Billion (approx). Lake purchased another brine asset AU $6 million in 2018, near Greenbushes, Western Australia.
Recently, LKE collaborated with a German chemical company, LANXESS AG (ETR: LXS). From 2020, LKE is expected to produce 18,000 tonnes of LCE per year. We believe the market has not given enough attention to LKE.
There are a lot of near-term catalysts for this company, but it is massively undervalued. That’s why we think LKE will make a great lithium investment in 2022.
Advantages:
- Top priority
- Popularity increases gradually
- Recent collaborations with top branded companies.
Disadvantages:
- It still needs more attention from the market.
- LKE is fundamentally strong but still, the market has not paid enough attention to LKE.
3. Sociedad Química y Minera de Chile (NYSE: SQM)
Sociedad Química y Minera de Chile is the world’s biggest Lithium producing company based in Chile. Apart from chemicals, the company also produces iodine, lithium, potassium, and plant nutrients.
In 2023, the company plans to produce 180,000 metric tons of lithium. Especially in Q2 2022, Sociedad Química y Minera de Chile’s earnings look strong.
The company generated more than $2.5 billion in revenue and had a profit margin of over 32.73%. There is $11.18% in dividends and $3.01 in diluted earnings per share for SQM.
Advantages:
- World’s leading Lithium company.
- Consistent in performance.
Disadvantages:
- Some concerns about the environmental regulations under the new Chilean president.
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4. Lithium Stocks Asx | Core Lithium (ASX: CXO)
It would be a good idea to invest in Core Lithium (ASX: CXO) if you were looking to get a great return on your investment. In fact, if you look at the company’s financial performance, you’ll see that it’s been gradually increasing day by day.
Therefore, if you invest in this company, you have the best chance of achieving great returns. Currently, the Core Lithium Stock price is AU $1.8. Due to its huge projects, it is expected to generate huge returns in 2023.
By investing in CXO, investors will be able to earn decent returns in the future.
Advantages:
- Potential stock.
- Gradually increasing.
- High return expectations due to its projects
Disadvantages:
- After September 13, 2022, Core Lithium is experiencing some loss.
5. Lithium Americas (NYSE: LAC)
LAC is a lithium project developer in Argentina and the United States. There are operations in Nevada and Argentina focused on Thacker Pass and Cauchar-Olaroz.
According to Lithium Americas, Thacker Pass has the largest known lithium reserves in the United States. The projects are in the development phase, so they are currently experiencing some losses.
According to the company’s financial report for the second quarter of 2022, it posted a net loss of $16.57 million, down from $46.13 million in the first quarter. Some technical analyst predicts, LAC has a lot of potential to go in an upward direction.
Advantages:
- Present in two mines.
- Its stock has high upside potential if its projects successfully work.
Disadvantages:
- It has not yet generated any revenue.
6. Lithium Stocks Asx | Lithium Australia (ASX: LIT)
Lithium Australia (ASX: LIT) looks very promising for investors. The company recently acquired two new projects, one in Australia and one in Canada. Initially, LIT was known as ADX in 2005.
In 2010, the company changed its name to Lithium Australia NL and has begun researching lithium in Canada. The project ran under the supervision of Dr James Nelson. Several years ago, LIT explored opportunities in Australia, acquiring Jervois Mining Company, which primarily concentrates on hard rock mining.
Moreover, the market capitalization of LIT is around $1 billion. The company gained a new lease on life when Mineral Deposits Limited acquired its flagship project in Lake Taldy, Queensland, in 2014. There is no other hard rock lithium deposit being explored in Australia or North America that is as high grade as the project.
It is expected that this project will be capable of producing 40,000mt of materials, and it is at an advanced stage of development. In 2020, the first stage of this project could be started. Furthermore, LIT recently acquired e-Cobalt Solutions Inc. (e-Cobalt) and Lithium Power International Limited (Lithium Power).
Advantages:
- Recently acquired new projects.
- Capable of producing high Lithium.
Disadvantages:
- Currently, its stock is down.
7. Lithium Stocks Asx | Piedmont Lithium (Nasdaq: PLL)
Lithium company Piedmont Lithium is based in Charlotte, North Carolina.
According to the company, its North Carolina plant will supply the US and European markets with stationary storage and vehicle batteries.
According to the company’s president and CEO, Keith D. Phillips, 80% of lithium hydroxide currently comes from China. There was a deal signed between the company and Tesla, but it was later delayed.
PLL is also in development please like LAC. Therefore, in quarter four of its fiscal year 2022, the company did not report any profits, with a net loss of around $10 million.
In spite of this, analyst forecasts predict that its share price will increase by a median of 70% over the next 12 months.
Advantages:
- An American-based production aiming to shrink China’s 80% market share.
- Tesla signed a deal to supply lithium to the EV manufacturer.
Disadvantages:
- The project is still in the development phase.
- The company’s mine has raised concerns with environmental regulators.
8. Ganfeng Lithium (OTC: GNENF)
Lithium producer Ganfeng Lithium (OTC: GNENF) is China’s largest and third-largest lithium producer in the world. In addition to lithium resource development and recycling, Ganfeng is engaged in all aspects of the lithium supply chain. In addition to providing lithium, the company also provides lithium compounds for use in energy storage, vehicles, and consumer products. It is committed to sustainability, providing materials for clean energy, and following a circular development process.
The earnings report for Ganfeng shows positive signs for investors. In the second quarter of 2022, its revenue crossed $9 billion. Based on some technical analysis, it can be one of the best Lithium investments.
Advantages:
- It is the third-largest lithium producer in the world
- Exceptional profit margins
- The focus is on sustainability
Disadvantages:
- Chile, the largest source of lithium reserves, does not have any operations.
