12 Cheapest Stocks with Biggest Upside Potential

8. Rio Tinto Group (NYSE:RIO)

Upside Potential: 33.82%

Forward P/E Ratio as of January 15: 8.31

Stock Price as of January 15: $60.38

Number of Hedge Fund Investors: 30

Rio Tinto Group (NYSE:RIO) is a global mining company headquartered in London, United Kingdom. The company is a major producer of essential commodities such as aluminum, copper, iron ore, and, more recently, lithium.

Rio Tinto Group’s (NYSE:RIO) recent acquisition of Arcadium Lithium is a significant step in the company’s strategy to become a leading player in the lithium market. Arcadium is a global, vertically integrated lithium chemical producer with a diverse portfolio of Tier-1 assets. These assets include vast low-cost lithium brine operations in Argentina and hard rock mines in Quebec, Canada. By integrating Arcadium into its portfolio, Rio Tinto Group (NYSE:RIO) aims to position itself to meet the growing global demand for lithium, which is a critical component in electric vehicles and energy storage systems.

Furthermore, Arcadium’s expertise in Direct Lithium Extraction (DLE) technology, particularly through its ILiAD initiative, complements Rio Tinto Group’s (NYSE:RIO) existing technology development efforts. DLE technology offers a more sustainable and efficient method of extracting lithium, using less energy, water, and land while achieving higher recovery rates. This technology is crucial in meeting the environmental and sustainability standards that are increasingly important to consumers and regulatory bodies.