Where Can You Find the Best Lithium Stocks to Buy in 2024?

Five lithium stocks, comprising both more speculative startup names for well-established mining corporations, have been recommended by Forbes Advisor as being worth looking at.

Where Can You Find the Best Lithium Stocks to Buy in 2023?
Rising demand for a component used to make a product doesn’t always translate to an increase in a company’s sales and earnings. (Photo via Getty Images)

Lithium Stocks to Purchase in February 2023

COMPANY MARKET CAP DESCRIPTION
Albemarle $26.0 billion One of the world’s largest suppliers of lithium.
Ganfeng Lithium $20.6 billion China’s largest producer of lithium.
Sociedad Quimica y Minera de Chile $22.8 billion Diversified chemicals and base material producer and major lithium producer.
Livent $3.5 billion Spun off from FMC in 2019 to create a lithium pure-play business.
Lithium Americas $2.6 billion Currently developing a lithium production site in Argentina with Ganfeng Lithium.

 

Prices for lithium metal have skyrocketed as a result of the fast increasing demand for EV batteries. Lithium’s price has increased fourfold in the 12 months leading up to September 2022, and it would be considerably higher if the U.S. currency hadn’t appreciated so much.

In addition to a large number of smaller startup operations that are in the early stages of resource exploration or development, there are only a few publicly traded firms that mine and refine lithium.
How to Buy Stocks in Lithium?

You can invest directly in businesses engaged in the mining and refining of lithium or indirectly by purchasing stock in businesses that supply the lithium industry, such as battery manufacturers and other energy storage companies.

As soon as your account is created and funded, you can begin trading. Simply search for the stock you want, click the “buy” button or link, enter the number of shares you want to buy or the price per fractional share that you want to pay, and then complete the order.

Do Lithium Stock Have ETFs?

Exchange-traded funds, or ETFs, are investment vehicles that concentrate on a specific investing theme or business type. Like mutual funds, they pool money from numerous investors, but they’re often less expensive, and when you submit buy and sell orders when the market is open, they are quickly carried out.

Several businesses provide lithium stock ETFs:

Amplify Lithium & Battery Technology ETF (BATT): BATT makes investments in businesses that make a sizable profit from the creation, usage, and distribution of lithium battery technology.

Global X Lithium & Battery Tech ETF (LIT): LIT makes investments in businesses involved in every stage of the lithium stock cycle, from mining to refinement to battery manufacturing. Its largest holding is Albemarle.

ARK Autonomous Technology & Robotics ETF (ARKQ): Although ARKQ isn’t specifically a lithium ETF, it does invest in businesses that are related to lithium, such as those who are engaged in autonomous technology and energy storage.

Maintain diversification through lithium stock equities

Investing in mining companies that create base materials and chemicals can take investors on a wild journey. Depending on the market value of the resource being mined and sold, stock values might be volatile and subject to rapid swings. Despite the fact that the global demand for batteries augurs favorably for lithium battery manufacturers, expect much turbulence along the way.

Bottom Line

One of the most intriguing options for investors today is lithium stock. This list’s inclusion of certain businesses that are still establishing their operations demonstrates how young the lithium industry is. Therefore, everything is still up in the air, and it’s unclear who will actually win and lose.

However, buying lithium stock is a simple process. You can add any of the stock tickers discussed in this article to your portfolio by searching them on an online brokerage. Or you might use your broker to purchase a lithium ETF.

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