In 2022, the top ASX lithium stocks will be called “the new gasoline” and “the new petroleum,” and with good reason. The rapid growth in battery consumption and production has the potential to greatly change how we power devices and vehicles in the years to come. The lithium market is now experiencing a surplus, likely impacting battery metal prices this year.
Australia, the world’s largest lithium producer, hosts several major global lithium miners. Investors looking to enter this market should become familiar with these prominent companies.
To assist with this, the Financial Planning News Organization has listed the top five ASX lithium stocks by market cap, using data from Trading View’s stock screener as of March 4, 2024.
Best 5 ASX Lithium Stocks To Watch in 2022 | Lithium Stocks that Could Explore in 2022, 2023
In 2022, the best ASX lithium stocks will be named “the new fuel” and “the new oil,” for good reason. The outstanding development in battery utilization and creation holds the possibility of fundamentally changing how we power gadgets and vehicles in the next few decades.
1. Lake Resources Ltd (ASX: LKE)
Our top pick for 2022 is Lake Assets (LKE). The organization is poised for major growth as it transforms into a leading lithium producer following the development of the Cosmic System assets, Pilbara Minerals, and Altura Mining. LKE has long secured a deal with German specialty synthetic materials conglomerate LANXESS AG (ETR: LXS ), which tells the market it should be taken seriously. Although LKE has been active since around 2005, it remained somewhat obscure until mid-2018. In 2012, the organization needed to auction off its resources because its saltwater extraction innovation would soon become unpopular.
In 2017, LKE successfully raised AUD 8 million and repurchased its initial brackish water resources. Brackish water extraction by OTOCORB has established it as one of Australia’s largest lithium producers, with a market capitalization of AUD 1.24 billion. In 2018, LKE acquired another saltwater resource near Greenbushes in Western Australia for AUD 6 million. Currently, they have entered into a binding offtake agreement with a division of LANXESS AG (ETR: LXS ), a German specialty chemicals company. LKE is a medium-sized producer with an estimated annual production of 18,000 metric tons of lithium carbonate equivalent (LCE) beginning in 2020.
In our view, LKE has been overlooked by the market. Despite several near-term catalysts, the company is undervalued. Therefore, we believe LKE will be a strong lithium investment in 2022.
2. Core Lithium (ASX: CXO)
Investing in a CXO can be a very profitable decision given the company’s continued financial growth. The company’s performance has been steadily improving every quarter and year, indicating strong potential for future returns.
At the time of writing, CXO’s share price is AUD 1.35, reflecting significant growth. With plenty of projects in the pipeline, the company is expected to post impressive profits in 2022. Hence, investors can expect not only good returns in the short term but also continuous growth in the future with CXO.
3. Lithium Australia (ASX: LIT)
Lithium Australia NL (LIT) is a promising lithium stock for investors. The company recently acquired two new projects, one in Australia and one in Canada, which together have the potential to double its total production. The company’s journey began in 2005 when it was known as ADX. In 2010, it was renamed Lithium Australia NL and began exploring lithium in Canada under the supervision of Dr. James Nelson from the University of British Columbia. LIT then joined Jervois Mining Ltd., pursuing opportunities in Australia. , which focuses on the hard rock sector with a single asset.
The company now boasts a market capitalization of nearly $1 billion. A turning point for LIT came in 2013 when it acquired Galaxy Resources Ltd., which acquired the PLS project. The company is largely owned by mining magnate Clive Palmer. The project contains a substantial portion of Australia’s known lithium resources and approximately half of the world’s known spodumene resources.
In 2014, LIT grew significantly by acquiring its flagship project at Lake Tildi, Queensland, from Mineral Reserves Limited. The project has a hard rock lithium deposit, one of the highest-grade deposits currently being discovered in both Australia and North America.
The project is on track to produce up to 40,000 metric tonnes. It is already in development, possibly nearing completion. We can build it in phases, with the initial phase starting in 2020.
Additionally, LIT recently expanded its portfolio by acquiring two companies: Lithium Power International Limited (Lithium Power) and e-Cobalt Solutions Inc. (e-Cobalt).
4. Arizona lithium (ASX: AZL)
Our latest pick for the best lithium stocks to invest in for 2022 is Arizona Lithium (ASX: AZL). The company has shown strong performance over the past few months, touching a high of $0.20 and a low of $0.04 over the past year. Founded in 1969, Arizona Lithium has a solid track record. According to Morningstar Quantitative, the stock currently has a fair value of $0.21, but some predictions suggest it could easily reach AUD1. We predict that the AZL price will reach AUD 0.38 by the end of 2022. Currently, AZL’s share price stands at AUD 0.16.
5. Global Lithium (ASX: GL1)
GL1 is a company that explores valuable resources, and at the moment, they are putting all their energy into their Marble Bar Lithium project. They own the entire project, which sits in Western Australia’s Northern Pilbara Craton. Another project they are involved in is the Manna lithium project with Breaker Resources, where GL1 has an 80% stake.
The two companies are collaborating on the project, which will start in 2022. Additionally, GL1 has secured a 10-year contract for spodumene concentrate with Suzhou TA&A Ultraclean Technology, commencing March 3, 2022. Currently, GL1’s share price is AUD 1.75. A high of $2.79 and a low of 0.24 AUD over the past 52 weeks. According to Morningstar, GL1 has a fair value of $2.84. Consider whether it is worth investing in the company at this price point.
Will lithium stocks go up?
Lithium stocks are poised to rise for several reasons. A major factor is the growing demand for electric vehicles, where lithium serves as a key component in battery production. Additionally, the medical industry is also heavily dependent on lithium, with a constant demand for drugs containing it. This steady demand ensures that the demand for lithium remains unabated.
Should I invest in lithium stocks?
It’s a smart move to broaden your investment portfolio by considering lithium stocks or lithium-focused ETFs. Demand for lithium continues to grow, with several prominent analysts estimating it could reach nearly 2 million metric tons by 2030. This increase is mainly due to the increasing popularity of electric vehicles, where lithium is a key component in batteries. As the demand for electric cars increases, so will the demand for lithium.
Apart from the above 5 best lithium shares, keep an eye on the others as well to see massive gains in 2022
The List of lithium mining companies in Australia
| Lithium companies | ASX Code |
| AVZ Minerals | AVZ |
| Core Lithium | CXO |
| Lake Resources | LKE |
| Liontown Resources | LTR |
| Mineral Resources | MIN |
| Orocobre Limited | ORE |
| Piedmont Lithium | PLL |
| Pilbara Minerals | PLS |
| Vulcan Energy | VUL |
| Global Lithium | GL1 |
Small-cap lithium stocks (ASX)
| Company Name | Stock Code |
| METALS AUSTRALIA | ASX: MLS |
| SHREE MINERALS | ASX: SHH |
| TAMBOURAH METALS | ASX: TMB |
| BRYAH RESOURCES | ASX: BYH |
Those stocks we just talked about? They are associated with lithium mining and exploration. That’s why we think they’re the top Australian lithium stocks with market caps under $15 million. Our advice? Keep an eye on them.
What did this YouTuber say about lithium stocks?
FAQs for investing in Lithium 2024
What is lithium?
Lithium holds the distinction of being the lightest metal you’ll find on the periodic table. It is quite versatile, finding its way into all sorts of things such as lithium-ion batteries, medicine, and various industrial uses such as making glass and steel.
Who owns lithium mines in Australia?
Several companies own lithium mines in Australia, including some of the largest ASX-listed lithium stocks. Apart from those mentioned earlier, there are others, such as Pilbara Minerals, which is operating in Pilgungoura. Arcadium Lithium, with Mount Caitlin mine; Jiangxi Ganfeng Lithium, a partnership with Mineral Resources at the Mount Marion mine; and Tianqi Lithium, which has a stake in Greenbushes through its stake in the mine operator, Talison Lithium.
Who is Australia’s largest lithium producer?
The largest lithium producer in Australia is Albemarle. They are involved in both the Greenbush and Woodgena hard rock lithium mines. Greenbushes stands as the world’s largest lithium mine, and Albemarle owns 49 percent of the company that operates it, called Talison Lithium. Additionally, Albemarle owns a 60 percent interest in the Wodgina mine, which is associated with mineral resources. He also co-owns the Camerton lithium production facility in a 60/40 partnership with Mineral Resources.
Should I buy Lithium Australia shares?
Investing in Australian lithium stocks is a smart move for several reasons. Firstly, Australian lithium boasts a high level of quality, which makes it highly sought after in the market. Secondly, Australian mining companies exhibit an impressive production rate, enabling them to extract and sell lithium quickly, thereby maximizing profits. As a result, Australian lithium shares are more likely to yield better returns than shares in other countries.
Why are lithium stocks going up?
The price of lithium shares is rising mainly due to the increasing demand for lithium in the market. This demand growth is fueled by the growing popularity of electric vehicles (EVs), where lithium serves as the primary source of power in their batteries.
How do I buy lithium stocks?
There are several ways to buy lithium stocks. You can invest directly in lithium mining or exploration companies, or choose an ETF composed of various lithium companies. If you want to buy lithium stocks in Australia, Commsec stands out as the top platform. For investments of more than AUD 500, or smaller investments of less than $500, the Superhero Trading Platform is a viable option.
What is the best Australian lithium stock to buy?
The best Australian lithium stocks to buy depend on a variety of factors, such as market conditions, company performance, and individual investment goals.
What is the best lithium stock to invest in?
Similarly, the best lithium stocks to invest in depend on market trends, company fundamentals, and personal investment strategies.
What is the lithium forecast for 2024?
The lithium forecast for 2024 may depend on factors such as demand for electric vehicles, technological developments, geopolitical factors, and supply chain dynamics.
What is the future of lithium in ASX?
The future of lithium on the ASX (Australian Securities Exchange) will likely be influenced by global demand for electric vehicles, renewable energy storage solutions, and advances in lithium extraction and processing technologies.
Conclusion: ASX Lithium Stocks
These are some of the ASX lithium stocks to consider investing in in 2022. They have been well-researched and show promising growth potential both in the near term and beyond. Investing in any of these stocks now can lead to significant returns until the end of the year.
