5 Lithium Stocks Billionaires Are Loading Up On

In this article, we discuss 5 lithium stocks billionaires are loading up on. If you want to see more stocks in this selection, check out 10 Lithium Stocks Billionaires Are Loading Up On. 

5. FREYR Battery (NYSE:FREY)

Number of Hedge Fund Holders: 20

Number of Billionaire Investors: 7

FREYR Battery (NYSE:FREY) is involved in the manufacturing and distribution of battery cells used in applications such as energy storage systems, electric mobility, marine, and aviation. The company specializes in the design and production of lithium-ion battery cell facilities. FREYR Battery (NYSE:FREY) stock was held 7 billionaire in the first quarter of 2023, including billionaire Louis Bacon’s Moore Global Investments. 

On March 28, FREYR Battery (NYSE:FREY) disclosed its discussions regarding a potential strategic alliance with Glencore, Caterpillar, Siemens, and Nidec. The aim of this coalition is to expand the implementation of sustainable battery solutions across Europe, North America, and other regions. Once established, this strategic partnership will enable exploration of shared interests throughout the battery value chain. Possible areas of collaboration include battery cell manufacturing, integration of battery packs and modules, digital and software services, mining and refining, stationary storage applications for the power market, electric transportation, as well as recycling and end-of-life solutions.

According to Insider Monkey’s first quarter database, 20 hedge funds were bullish on FREYR Battery (NYSE:FREY), compared to 27 funds in the prior quarter.

4. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)

Number of Hedge Fund Holders: 20

Number of Billionaire Investors: 7

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is involved in the production and distribution of specialized plant nutrients, derivatives of iodine and lithium, potassium chloride and sulfate, and industrial chemicals. The company provides lithium carbonates for a wide range of applications, including batteries, ceramic and enamel industries, heat-resistant glass, air conditioning chemicals, steel extrusion, primary aluminum smelting, pharmaceuticals, gunpowder manufacturing, and more. Additionally, it supplies lithium hydroxide for the lubricating greases industry and cathodes for batteries. Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a popular lithium stock among billionaires as of Q1 2023. 

On May 24, Joel Jackson, an analyst from BMO Capital, maintained an Outperform rating on Sociedad Química y Minera de Chile S.A. (NYSE:SQM) but lowered the firm’s price target on the shares to $105 from $130. The analyst has adjusted the expected average selling price (ASP) of lithium for 2023, reducing it from approximately $45,000 per metric ton to around $38,000 per metric ton. However, the expected price for 2024 remains at $25,000 per metric ton. The firm suggests that SQM still has significant potential for share price growth over time if the lithium ASP remains around $25,000 per metric ton and lithium volumes continue to increase from Atacama and the future Australian spodumene/hydroxide joint venture project.

According to Insider Monkey’s first quarter database, 20 hedge funds were bullish on Sociedad Química y Minera de Chile S.A. (NYSE:SQM), compared to 25 funds in the last quarter. Billionaire Ken Griffin of Citadel Investment Group is the biggest stakeholder in the company, with 1.5 million shares worth $125 million. 

Here is what ClearBridge Investments has to say about Sociedad Química y Minera de Chile S.A. (NYSE:SQM) in its Q1 2021 investor letter:

“Among materials names in our structural bucket, we sold SQM as the stock hit our price target. Lithium prices remain at levels well below previous highs and while we expect they may reach higher levels in the future; high pricing likely encourages additional supply onto the market.”

3. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 33

Number of Billionaire Investors: 8

Rio Tinto Group (NYSE:RIO) is involved in the global exploration, extraction, and refinement of mineral resources. Their product range includes lithium, aluminum, copper, iron ore, diamonds, gold, borates, titanium dioxide, salt, silver, and molybdenum. It is one of the top lithium stocks on the radar of billionaires. 

On May 26, Morgan Stanley analyst Alain Gabriel upgraded Rio Tinto Group (NYSE:RIO) to Overweight from Equal Weight. Despite concerns about demand and declining iron ore prices affecting Rio’s stock valuation, the analyst believes this presents a chance to invest in a company with exceptional assets, an expanding copper presence, improving operational performance, and excellent potential for capital returns. The analyst maintained an unchanged price target of 5,800 GBp on the stock and suggested that the current uncertainties surrounding the shares actually create buying opportunities for investors.

According to Insider Monkey’s first quarter database, 33 hedge funds were bullish on Rio Tinto Group (NYSE:RIO). Among these, 8 hedge funds were managed by billionaire investors, with Ken Griffin of Citadel Investment Group being one of them. 

2. Livent Corporation (NYSE:LTHM)

Number of Hedge Fund Holders: 32

Number of Billionaire Investors: 9

Livent Corporation (NYSE:LTHM) is a manufacturer and supplier of performance lithium compounds that are primarily utilized in lithium-based batteries, specialty polymers, and chemical synthesis applications. It is a lithium stock that is in high demand among billionaire investors.

On May 11, B. Riley analyst Matthew Key upgraded Livent Corporation (NYSE:LTHM) to Buy from Neutral with a price target of $32 following the company’s announcement of a merger agreement with Allkem. While the merger is still subject to regulatory and shareholder approval, the analyst believes that the transaction will result in the creation of a new US-listed lithium company valued at approximately $10.6 billion. In a research note to investors, the analyst expresses great optimism about the merger, highlighting the numerous advantages it brings to both Livent and Allkem. These advantages include increased scale, diversification of resources, and significant cost synergies due to the proximity of their assets, as stated by the firm.

According to Insider Monkey’s first quarter database, 32 hedge funds were bullish on Livent Corporation (NYSE:LTHM), compared to 29 funds in the prior quarter. Billionaire Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 1 million shares worth $23.7 million. 

Carillon Eagle Small Cap Growth Fund made the following comment about Livent Corporation (NYSE:LTHM) in its Q4 2022 investor letter:

“Livent Corporation (NYSE:LTHM) is a pure-play, fully integrated producer of performance lithium compounds. The stock underperformed amid investor concerns about how a potential decelerating rate of growth in overall electric vehicle (EV) production and demand, primarily in China, would affect the future price of lithium. Despite these potential near-term headwinds, longer-term the global lithium market remains tight, and we believe Livent plays a critical role in the battery value chain and remains well- positioned for the overall continued global adoption of EVs.”

1. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 41

Number of Billionaire Investors: 12

Albemarle Corporation (NYSE:ALB) specializes in the development, manufacturing, and marketing of engineered specialty chemicals. It operates through three segments – Lithium, Bromine, and Catalysts. The Lithium segment focuses on lithium compounds used in applications such as lithium batteries, greases, tires, plastics, catalysts, and pharmaceuticals, among others. Albemarle Corporation (NYSE:ALB) is one of the top lithium stocks that billionaires are loading up on. In Q1 2023, 12 billionaires, including Ray Dalio of Bridgewater Associates, were bullish on the stock. 

On May 2, Albemarle Corporation (NYSE:ALB) declared a quarterly dividend of $0.40 per share, in line with previous. The dividend is payable on July 3, to shareholders of record on June 16. 

According to Insider Monkey’s first quarter database, 41 hedge funds were long Albemarle Corporation (NYSE:ALB), compared to 46 funds in the earlier quarter. 

Carillon Tower Advisors made the following comment about Albemarle Corporation (NYSE:ALB) in its Q4 2022 investor letter:

“Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The stock gave back some of its recent gains amid investor concerns about how the future price of lithium could be affected by a potential decelerating rate of growth in overall electric vehicle (EV) production and demand, primarily in China. Despite these potential near-term headwinds, longer-term the global lithium market remains tight, and Albemarle plays a critical role in the battery value chain and remains well-positioned for the overall continued global adoption of EVs.”

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