In this article, we will look at 10 best lithium stocks to buy now. If you want to skip reading about how and why lithium prices are skyrocketing, you can go directly to 5 Best Lithium Stock To Buy Now.
Lithium prices are rallying during the EV boom. As concerns about climate change and global warming alarm governments to take action, and the global economy transitions to electrified transport and abandons combustion engines, the demand for lithium is bound to skyrocket. The biggest industrial application of lithium as of now is its use in powertrains of electric vehicles. Every big player in the automobile manufacturing industry has announced its plans to go all-electric at some point in the future, with some targeting achieving net-zero carbon emissions by 2035, and others planning all-electric fleets by 2050. Lithium manufacturers and miners are looking at lucrative days ahead, as the demand for lithium grows catalyzed by global EV adoption.
Global EV Adoption
According to Statista, even though a semiconductor shortage resulted in a rough year for the automobile industry in 2021, global electric vehicle sales saw a two-fold increase compared to 2020, peaking at 6.6 million up from 3 million. According to the EV volumes data, cited by the International Energy Agency, all net growth in global car sales in 2021 can be attributed to EVs. China was leading in 2021 having almost tripled electric car sales from 1.2 to 3.4 million. Europe was the runner-up region that reported new car registrations up by 70% from 2020, hitting 2.3 million, roughly half of which had electric powertrains. For the first time in history, new car sales crossed 1 million in the United States, and more than half of which were electric cars.
Strong Demand For Lithium Ahead
According to S&P Global Commodity Insights, the demand for lithium is expected to further strengthen in 2022. S&P Global Platts data shows that seaborne lithium carbonate prices went up by 413% in 2021 and hit $32,600 per metric ton last December. Lithium hydroxide prices gained 254% over the same period to reach $31,900 per metric ton. Lithium chemical supply is expected to hit 636,000 metric tons, up from roughly 497,000 metric tons in 2021. The demand for lithium is forecasted to grow to 641,000 metric tons of lithium carbonate equivalent in 2022, up from 504,000 metric tons in 2021. This creates a deficit of 5,000 metric tons, down from a deficit of 8,000 metric tons in 2021, and according to S&P Global Market Intelligence, this deficit is expected to drive lithium prices to record highs in 2022.
Soaring lithium prices have resulted in EV manufacturers pondering about creating their own lithium power plants. This April, a tweet highlighted the exponential growth of the price of lithium from $4,450 per tonne in 2012 to $78,032 per tonne as of April 2022. Shortly after, Elon Musk, the CEO of Tesla, Inc. (NASDAQ:TSLA), was reported to be talking about exploring opportunities for Tesla, Inc. (NASDAQ:TSLA) to get into mining and refining lithium on its own unless prices for the commodity relax.
Prominent names in the lithium industry include Rio Tinto Group (NYSE:RIO), QuantumScape Corporation (NYSE:QS), and Albemarle Corporation (NYSE:ALB).
Our Methodology
To determine the 10 best lithium stocks to buy now we looked for companies that are continually making progress with expansions of their facilities and are racing to become the go-to suppliers for major EV companies. We included the analyst and investor sentiment for each stock mentioned. The hedge fund sentiment was calculated using Insider Monkey’s database, which as of the fourth quarter of 2021 tracks 924 elite hedge funds. We have ranked these stocks in an increasing number of hedge fund holders.
With this context in mind, let’s look at the 10 best lithium stocks to buy now.
10 Best Lithium Stocks To Buy Now
10. Sigma Lithium Corporation (NASDAQ:SGML)
Number of Hedge Fund Holders: 3
Sigma Lithium Corporation (NASDAQ:SGML) operates as a mining company headquartered in Canada. The company is involved in the development of hard rock lithium deposits in the Americas and aims to become a leading cost-effective supplier of lithium batteries for the EV industry. Last December, Sigma Lithium Corporation (NASDAQ:SGML) commenced on-site construction to build the foundation and infrastructure installation of its production plant, at the company’s Grota do Cirilo project.
Sigma Lithium Corporation (NASDAQ:SGML) is a compelling lithium stock to buy now as it has increasing momentum and bullish analyst and investor sentiment. As of April 26, the stock has gained an astounding 270.94% over the past twelve months. Moreover, this April, Canaccord analyst Katie Lachapelle raised her price target on Sigma Lithium Corporation (NASDAQ:SGML) to Canadian $25 from Canadian $24 and maintained a Speculative Buy rating on the shares.
Hedge funds are upping their stakes in Sigma Lithium Corporation (NASDAQ:SGML). Insider Monkey found that by the end of Q4 2021, Sigma Lithium Corporation (NASDAQ:SGML) was a part of 3 hedge fund portfolios that held collective stakes of $11.77 million in the company. Of these Waratah Capital Advisors was the most prominent shareholder. This is compared to 2 positions in the third quarter of 2021 with stakes worth $8.47 million. The hedge fund sentiment for the stock is positive.
Like Rio Tinto Group (NYSE:RIO), QuantumScape Corporation (NYSE:QS), Albemarle Corporation (NYSE:ALB), and Tesla, Inc. (NASDAQ:TSLA), Sigma Lithium Corporation (NASDAQ:SGML) is making efforts to expand its lithium facilities and is becoming a prominent name in the space.
9. CBAK Energy Technology, Inc. (NASDAQ:CBAT)
Number of Hedge Fund Holders: 5
CBAK Energy Technology, Inc. (NASDAQ:CBAT) manufactures and sells lithium batteries in Mainland China, the United States, Korea, Europe, and internationally. Last November, the company announced that it has commenced operations at its lithium power plants in Nanjing and Dalian. The company aims to address the growing demand for lithium batteries in the electric vehicle and energy storage sectors and is poised to grow in the near term as the world goes through an electric vehicle boom.
On April 14, 2022, CBAK Energy Technology, Inc. (NASDAQ:CBAT) reported earnings for the fiscal fourth quarter of 2021. The company reported earnings per share of $0.10 which equates to a net income of $61.5 million and generated revenues of $27.8 million, up 80.5% year over year from $15.4 million in Q3 2021.
Hedge funds are upping their stakes in CBAK Energy Technology, Inc. (NASDAQ:CBAT). At the close of Q4 2021, 5 hedge funds held long positions in CBAK Energy Technology, Inc. (NASDAQ:CBAT). The total stakes of these funds came to $3.6 million, up from $2.2 million in the previous quarter with 6 positions.
CBAK Energy Technology, Inc. (NASDAQ:CBAT) is one of the best lithium stocks to buy now. Other companies that are working on expanding their lithium operations include Rio Tinto Group (NYSE:RIO), QuantumScape Corporation (NYSE:QS), Albemarle Corporation (NYSE:ALB), and Tesla, Inc. (NASDAQ:TSLA).
8. Standard Lithium Ltd. (NYSE:SLI)
Number of Hedge Fund Holders: 9
Standard Lithium Ltd. (NYSE:SLI) explores for, develops, and processes lithium brine properties in the United States. Its flagship project is the Lanxess project with approximately 150,000 acres of brine leases located in southwestern Arkansas.
On February 24, Standard Lithium Ltd. (NYSE:SLI) announced that it has reached an agreement with LANXESS Corporation to accelerate the development of the first commercial lithium project in Arkansas, which will be constructed at the Lanxess facility in El Dorado. Standard Lithium Ltd. (NYSE:SLI) will control all development of the project leading up to and including the completion of the Front End Engineering Design study. Under the terms of the agreement, a minimum of 51% of equity will be granted to Standard Lithium Ltd. (NYSE:SLI) and the company may retain as much as 100% interest in the project.
This March, Stifel analyst Cole McGill resumed coverage of Standard Lithium Ltd. (NYSE:SLI) with a Buy rating and a Canadian $13 price target on the shares. The analyst believes that the company is well-positioned to benefit from the recent government policies that encourage domestic sourcing of critical minerals. Moreover, Standard Lithium Ltd. (NYSE:SLI) is experiencing bullish trading volumes and as of April 26, the stock’s trailing-twelve-month returns are up 93.99%.
Standard Lithium Ltd. (NYSE:SLI) is attracting bullish views from analysts and investors alike, which makes it rank among the best lithium stocks to buy now. Insider Monkey found that at the close of Q4 2021, 9 hedge funds were long Standard Lithium Ltd. (NYSE:SLI) with combined stakes of $12.97 million. This is compared to 5 positions in the previous quarter with stakes of $10.97 million.
7. Piedmont Lithium Inc. (NASDAQ:PLL)
Number of Hedge Fund Holders: 9
Piedmont Lithium Inc. (NASDAQ:PLL) operates as an exploration stage company and is involved in the exploration and development of resource projects in the United States. The company’s flagship project is the Carolina Lithium Project which spans an area of roughly 3,116 acres located in North Carolina. The stock is ranked high among the 10 best lithium stocks to buy now because of its activity in the space, and its bullish trading volume. As of April 26, the stock’s year-to-date returns are up 26.91% and the company boasts a market value of $1.23 billion.
The company plans on expanding its production capacity to over 60,000 metric tons of battery-grade lithium hydroxide per year, and on March 9, Piedmont Lithium Inc. (NASDAQ:PLL) completed its Preliminary Economic Assessment for its second lithium hydroxide plant in the United States. The PEA assumes a 30-year life of operations with a production capacity of 30,000 metric tons of battery-grade lithium hydroxide per year.
This March, JPMorgan analyst Tyler Langton raised his price target on Piedmont Lithium Inc. (NASDAQ:PLL) to $92 from $84 and maintained an Overweight rating on the shares. The analyst said that Piedmont Lithium Inc. (NASDAQ:PLL) is bound to see increased cash flows next year as its projects take off production. This makes Piedmont Lithium Inc. (NASDAQ:PLL) a cost-effective lithium producer in North American markets and a compelling vendor for electric vehicle companies.
According to Insider Monkey’s database, 9 hedge funds held long positions in Piedmont Lithium Inc.(NASDAQ:PLL) at the end of the fourth quarter of 2021. The total stakes of these funds were valued at $12.06 million. This is compared to 6 positions in the previous quarter with stakes worth $16.93 million.
6. Lithium Americas Corp. (NYSE:LAC)
Number of Hedge Fund Holders: 19
Lithium Americas Corp. (NYSE:LAC) operates as a resource company in the United States and Argentina and explores lithium deposits. The company aims to become a leading supplier for the domestic battery and EV industries and is making unparalleled efforts. This April, the company announced that it has filed for a Department of Energy loan to fund its wholly-owned Thacker Pass lithium project in Nevada. With this, Lithium Americas Corp. (NYSE:LAC) is well-positioned to establish a local lithium supply chain to support the production of electric vehicles in the U.S.
On April 5, Deutsche Bank analyst Corinne Blanchard raised her price target on Lithium Americas Corp. (NYSE:LAC) to $40 from $34 and maintained a Buy rating on the shares. Blanchard noted that lithium manufacturers and miners are poised to grow as we move into the second quarter and the prices for the commodity increase throughout the year. As of April 25, Lithium Americas Corp. (NYSE:LAC) has gained 77.45% over the past twelve months, making it a high-moment lithium stock to buy now.
Lithium Americas Corp. (NYSE:LAC) was spotted on 19 hedge fund portfolios at the end of the fourth quarter of 2021. The total stakes of these funds in the company exceeded $184.84 million, up from $94.15 million in the previous quarter with 12 positions. The investor sentiment for the stock is positive.
Himension Capital was the most prominent shareholder in Lithium Americas Corp. (NYSE:LAC) at the end of the fourth quarter of 2021. According to Insider Monkey, as of December 31, Himension Capital owns more than 2.34 million shares of stock which equate to a stake value of $68.33 million, representing 5.22% of Himension Capital’s 13F portfolio.
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Disclosure. None. 10 Best Lithium Stocks To Buy Now is originally published on Insider Monkey.
