In this article, we will be taking a look at the 5 biggest lithium stocks to invest in. To go through our detailed analysis of the lithium and battery industry, you can go directly to see the Lithium Stocks List: 16 Biggest Lithium Stocks.
5. Lucid Group, Inc. (NASDAQ:LCID)
Market Capitalization as of September 29: $12.76 billion
Lucid Group, Inc. (NASDAQ:LCID) is an American manufacturer of electric luxury sports cars and grand tourers headquartered in Newark, California. It supplies electric vehicles (EVs) with lithium-ion batteries, among more.
Lucid Group, Inc. (NASDAQ:LCID) did not meet the expected earnings for the second quarter of 2023 and fell short of analysts’ estimates for both earnings and revenue. Nevertheless, the company experienced a 55% year-over-year increase in Q2 revenue and substantially increased its car deliveries, reaching 1,404 units, which was more than double the 679 units delivered in Q2 2022. The management of Lucid Group, Inc. (NASDAQ:LCID) remains optimistic about their production targets, aiming to manufacture 10,000 vehicles in 2023, a notable increase from the 7,180 vehicles produced in 2022.
Lucid Group Inc. (NASDAQ:LCID) was seen in the 13F holdings of 18 hedge funds at the end of the second quarter. Their total stake value in the company was $98.8 million. This is compared to 16 hedge funds in the prior quarter with stakes worth $21.7 million.
4. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
Market Capitalization as of September 29: $16.14 billion
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a chemical enterprise based in Chile, specializing in the production of plant nutrients, iodine, lithium, and industrial chemicals. As one of the largest lithium producers globally, SQM primarily operates its main production facilities in the Atacama Desert within the Tarapacá and Antofagasta regions, leveraging the region’s abundant natural resources.
At the end of Q2 2023, 24 hedge funds were bullish on Sociedad Química y Minera de Chile S.A. (NYSE:SQM) and disclosed stakes worth $324.9 million in the company. This is compared to 20 positions in the preceding quarter with stakes worth $310.8 million in the company. As of the second quarter, Ken Griffin’s Citadel Investment Group is the largest shareholder in the company and has stakes worth $118.24 million in the company.
3. Albemarle Corporation (NYSE:ALB)
Market Capitalization as of September 29: $19.95 billion
Albemarle Corporation (NYSE:ALB) is a company focused on specialty chemicals manufacturing, with its headquarters situated in Charlotte, North Carolina. The company functions through three primary divisions: lithium, bromine specialties, and catalysts. Notably, Albemarle emerged as the largest supplier of lithium for electric vehicle batteries as of the year 2020.
Earlier this August, Albemarle Corporation (NYSE:ALB) released its results for the second quarter. The adjusted earnings per share (EPS) for the quarter stood at $7.33, surpassing expectations by $2.81. The quarterly revenue witnessed a substantial increase of 60.1% compared to the same period the previous year, although it fell short of estimates by $20 million.
At the close of Q2 2023, 41 hedge funds were long Albemarle Corporation (NYSE:ALB) and disclosed stakes worth $436.49 million in the company. The hedge fund sentiment for the stock is positive. As of the second quarter, Philippe Laffont’s Coatue Management is one of the top investors in Albemarle Corporation (NYSE:ALB) and has stakes worth $154.34 million in the company.
2. Rio Tinto Group (NYSE:RIO)
Market Capitalization as of September 29: $164.89 billion
Rio Tinto Group (NYSE: RIO) is dedicated to the exploration, mining, and processing of mineral resources on a global scale. Their portfolio encompasses a diverse array of minerals, such as lithium, aluminum, copper, iron ore, diamonds, gold, borates, titanium dioxide, salt, silver, and molybdenum. Rio Tinto Group (NYSE: RIO) is notably considered one of the top lithium stocks to keep an eye on.
On June 28, Rio Tinto Group (NYSE: RIO) unveiled plans to establish a battery laboratory in Australia, aimed at researching various technologies related to battery production, manufacturing, and chemistry. While iron ore remains a primary revenue source for Rio Tinto Group (NYSE: RIO), the company is actively seeking to expand its production of commodities vital for the advancement of clean energy initiatives.
As of June 2023, 29 hedge funds among the 910 profiled by Insider Monkey had bought the firm’s shares. Rio Tinto Group (NYSE:RIO)’s largest hedge fund investor is Ken Fisher’s Fisher Asset Management since it owns 163,710 shares that are worth $11.7 million through a stake worth $950 million.
1. Tesla, Inc. (NASDAQ:TSLA)
Market Capitalization as of September 29: $784.06 billion
Tesla, Inc. (NASDAQ:TSLA) is a multinational American company focusing on automotive and clean energy, with its headquarters located in Austin, Texas. The company specializes in the design and production of electric vehicles, stationary battery energy storage solutions ranging from household to grid-scale, as well as solar panels, solar shingles, and associated products and services.
Tesla, Inc. (NASDAQ:TSLA) commenced the construction of its lithium refinery in the broader Corpus Christi region of Texas in May 2023. The completion of this facility will signify a substantial financial investment exceeding $1 billion in the Southwest Texas vicinity. This significant investment underscores the company’s proactive strategy to ensure a consistent supply of high-grade lithium hydroxide suitable for batteries within North America. Moreover, Tesla, Inc. (NASDAQ:TSLA) is already engaged in the production of lithium-ion batteries at its Gigafactories, further solidifying its position as one of the top lithium stocks for investment.
According to Insider Monkey’s first quarter database, 79 hedge funds were bullish on Tesla (NASDAQ:TSLA), compared to 82 funds in the prior quarter. Catherine D. Wood’s ARK Investment Management is a prominent stakeholder of the company, with 4.8 million shares worth $1.26 billion.
Here’s what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text).
You can also take a peek at 25 Bestselling Cars, Trucks, and SUVs of 2022 and 2023 and 10 Best Canadian ETFs.
