8 Most Profitable Lithium Stocks to Invest In

1. Rio Tinto Group (NYSE:RIO)

Last Year’s Net Income: $11.55 billion

Number of Hedge Fund Holders: 39

Rio Tinto Group (NYSE:RIO) is a top global mining company focused on the exploration and production of minerals, crucial for industrial and energy applications. The company works across the iron ore, aluminum, copper, and minerals sectors, with a growing focus on lithium to support the energy transition. Rio Tinto has recently made key moves to grow its lithium portfolio and boost the integration of renewable energy.

To strengthen its lithium market stance, Rio Tinto Group (NYSE:RIO) acquired Arcadium Lithium for $6.7 billion in March 2025. This deal, which adds the Rincon lithium project, positions Rio Tinto Lithium as one of the top lithium producers worldwide. The company now aims to produce over 200,000 tons of lithium carbonate equivalent (LCE) annually by 2028. By using Arcadium’s prime assets coupled with Rio Tinto’s financial strength, the company aims for higher EBITDA and better cash flow in the future.

Rio Tinto Group (NYSE:RIO) posted robust financial results despite shifting market trends. Its underlying EBITDA fell just 2% to $23.3 billion, helped by stronger performance in aluminum and copper, even as iron ore prices dropped 11%. Meanwhile, operating cash flow stayed strong, up 3% with a 67% EBITDA cash conversion rate. The company spent $9.5 billion in capital, with net debt at $5.5 billion, while maintaining its 60% payout ratio for regular dividends, giving $6.5 billion to investors.

Rio Tinto Group (NYSE:RIO) is setting itself up for future growth by focusing on lithium and clean energy. The company is working to boost profits while supporting global climate initiatives by growing its key mineral assets and forming green energy partnerships.

Overall, Rio Tinto Group (NYSE:RIO) ranks first on our list of the Most Profitable Lithium Stocks to Invest In. While we acknowledge the potential of RIO, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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