If you’re investing in lithium stocks, you may want to consider some of the top-quality stocks from Australia’s stock exchange (ASX). After all, Australia possesses one of the largest reserves of this precious metal on the planet, and demand continues to rise as it’s used in more high-tech products.
Now that we’re just one month away from 2023, the market has room to grow tremendously from its current levels. Here are 11 ASX Lithium Stocks that could explode in 2023.
The rise of electric cars, thanks to Tesla and others, has been a huge boon for the lithium industry. But that’s just the start – the lithium market has exploded over the past decade, and there’s no sign of it slowing down anytime soon.
In this article, we’ll highlight the top 11 lithium stocks that could see some impressive gains in 2023 and beyond based on their current price, company management, and prospects.
What are the Best Lithium Stocks to Buy in ASX?
Here are the top Lithium Stocks to consider for investing in the Australian stock market.
|Name of Lithium Companies||ASX Code||Stock Price||Market Cap|
|Core Lithium||(ASX: CXO)||$1.40||$2.32 billion|
|Piedmont Lithium||(ASX: PLL)||$0.84||$1.38 billion|
|Pilbara Minerals Ltd||(ASX: PLS)||$4.76||$14.86 billion|
|Allkem Ltd||(ASX: AKE)||$14.00||$9.58 billion|
|Sayona Mining Ltd||(ASX: SYA)||$0.22||$1.85 billion|
|Lake Resources||(ASX: LKE)||$1.05||$1.45 billion|
|Panoramic Resources||(ASX: PAN)||$0.17||$369.16 million|
|AVZ Minerals Limited||(ASX: AVZ)||$0.78||$2.75 billion|
|Mineral Resources||(ASX: MIN)||$83.17||$13.32 billion|
|Liontown Resources||(ASX: LTR)||$1.97||$3.92 billion|
|Arizona Lithium||(ASX: AZL)||$0.078||$192.79 million|
Stock Price updated on 18.11.2022
1. Core Lithium (ASX: CXO)
A market capitalization of $2.32 billion is currently in place.
Currently, $1.40 is the stock price as of 18/11/2022.
The percentage of stake platforms that were purchased/sold from 1 January until 7 October 2022 is 65% / 35%.
With its Finniss lithium project in the Northern Territory, Core Lithium hopes to become one of Australia’s leading lithium producers. The project should produce more than 15 million tonnes of lithium by 2023.
Core Lithium is not just a lithium company: it also mines uranium and has one mine in South Australia and another in the Northern Territory. Over 100% of CXO’s share price has risen this year.
According to a prospector’s definitive feasibility study, the Finniss Project in the Northern Territory has 173,000tpa of lithium concentrate, with a 10-year mine life.
Amid a very high lithium price and operating margin environment, Stephen Biggins’ top priority is to produce high-quality lithium concentrate from the Finniss Project this year.
The one big advantage is the proximity to Darwin Port. At only 88km, it’s the closest port to Asia of any Australian lithium project.
2. Piedmont Lithium (ASX: PLL)
As part of its goal to develop a world-class integrated lithium business in the United States, Piedmont Lithium is interested in North Carolina’s Tin Spodumene Belt. It is strategically located to enter the US electric vehicle supply chain and to become one of the lowest-cost producers of lithium hydroxide.
The company has interests in three main lithium mines – North Carolina Lithium, its flagship mine, Sayona Quebec, where it owns 39%, and Ghana Lithium, where it owns 50% of pre-processed lithium.
A chemical plant is also developing to process lithium hydroxide for use in batteries and produce by-product minerals.
The current market cap of Piedmont Lithium is $1.38 billion. Despite the cost of production at the company’s flagship North Carolina mine being just over $3,000/t, the current spot price of lithium hydroxide is roughly $15,700/t, which can result in substantial profit margins.
Compared to other mines, particularly those in Australia, the company benefits from location advantages in terms of electricity, transport, and personnel costs.
3. Pilbara Minerals Ltd (ASX: PLS)
It currently has a Market Capitalisation of $14.86 billion.
Stock price: $4.76
62% of the stakes are purchased, and 38% are sold.
Pilbara Minerals is an Australian lithium-tantalum mining company. They own the Pilgangoora hard rock mining site 120 km south of Port Hedland, Australia.
Additionally, the company aims to increase its downstream value-added lithium market holdings by developing chemical conversion plants in South Korea and China.
The Pilgangoora Project in Western Australia, owned by Pilbara Minerals, has a 26-year mine life estimate and can produce 580,000 tonnes per year. A global lithium producer, PLS has seen its share price rise +45.9% YTD due to the increase of this commodity.
The market consensus is for Pilbara Minerals to earn $685 million in NPAT or 23 cents per share in FY22. Pilbara Minerals is currently trading at a PER of around 11 times FY22 earnings. Earnings growth is expected to average 5% per year for the next three years.
4. Allkem Ltd (ASX: AKE)
Currently, $9.58 billion is the market capitalization.
A price of $14.00 was recorded on 18/11/2022 for the stock.
The percentage of stake platforms that have been bought or sold from 1 January 2022 to 7 October 2022 is 59% / 41%.
Last year, Allkem merged Orocobre and Galaxy Resources, giving the company global access to a diverse, high-quality portfolio of lithium chemicals. This Argentine company operates lithium projects across Australia, Argentina, and Japan, with development underway to meet significant market growth expectations.
Toyota, the Jujuy provincial government, and Prime Planet Energy & Solutions have partnered with the company, which plans to triple production and mine 10% of the world’s lithium by 2026.
Allkem, one of the biggest lithium pure-play companies in the ASX, provides end-to-end solutions for the lithium industry.
In addition to hard-rock lithium operations in Canada and Australia, the company holds lithium brine projects in Argentina and a lithium hydroxide conversion facility in Japan. In the second quarter of 2022, AKE’s revenues and net profits quadrupled, driving its share price up over 37% year-to-date.
Develop into a globally significant lithium producer with a 10% share of the lithium market by 2026—defined growth path with a three-fold increase in lithium production. Exploration and development projects at an early stage offer further upside potential.
5. Sayona Mining Ltd (ASX: SYA)
A market capitalization of $1.85 billion.
The stock price (as of 18/11/2022) is $0.22
The number of stake platforms purchased and sold between 1 January 2022 and 7 October 2022 is: 65% / 35%
This emerging lithium producer is in a strategic partnership with Piedmont Lithium in Quebec. They acquired North American Lithium in 2016.
Authier and Tansim projects and its 60% ownership of Moblan project will be integrated into this hub.
As well as a tenement portfolio for gold and lithium in Western Australia, the miner is committed to downstream processing in Quebec to supply the fast-growing North American battery and electric vehicle markets.
In Canada and Western Australia, Sayona Mining aims to become a significant player in the North American lithium market, as it now holds the region’s biggest lithium reserves.
Australia’s mining sites don’t stop at just lithium mining, with a gold eye. A year after Sayona Corporation began using 160,000 tons of lithium, its stock had climbed more than 69 percent, and its value skyrocketed in 2022, when the demand for the product skyrocketed.
6. Lake Resources (ASX: LKE)
Market capitalization: $1.45 billion
Stock price: $1.05
This holding rose by 61% and decreased by 39% between 1 Jan. 2022 – 7 Oct. 2022.
Lake Resources is a lithium developer using a proprietary process for extracting clean battery-quality lithium.
Its collaborator, Lilac Solutions, is developing a gentle water treatment that will leave water unaffected so it can be returned to its natural source rather than evaporating or removing it via mining. The Bill Gates-backed Breakthrough Energy Fund funded Lilac.
A prime location in the lithium triangle is where 40% of the world’s lithium is produced at the lowest cost. LKE’s Kachi project covers 2,200 square km in Argentina.
Another preoperational lithium mining company, Lake Resources, is located in South America’s lithium triangle, where 40% of the global lithium is produced at the lowest price.
The company’s assets are all within the borders of Argentina and are estimated to contain more than 4.4Mt of high-quality lithium.
In addition to being one of the cleanest mining companies on the planet, the company is committed to following environmental, social, and governance practices. In 2022, LKE’s share price is up +5.13%.
7. Panoramic Resources (ASX: PAN)
The share price is $0.17.
A market capitalization of $543.5 million
There is no dividend yield on this stock.
Cash on hand: $30 million
Together with its subsidiaries, Panoramic Resources Limited engages in the exploration, evaluation, and development of nickel, cobalt, and copper.
Panoramic Resources holds 100% of the interests in the Savannah nickel project, located in East Kimberly, Western Australia.
They were incorporated in 2001, with headquarters in Perth, Australia. While it’s a Small Cap company, Panoramic is the second-largest Australian producer of nickel sulphide.
Its Savannah and Lanfranchi Projects are both located in Western Australia. PAN also holds projects focused on gold and platinum group metals.
This company’s vision for the near future is to expand the exploration and production base to make them a major player in the ASX 100 index. Currently, nickel is a relatively good business venture.
8. AVZ Minerals Limited (ASX: AVZ)
This company has a stock market capitalization of $2.75b.
Stock value as of 18/11/2022: $0.78
Stake Platform Market Share (from Jan 1, 2022 – Oct 7, 2022): 62%/38%
In the Democratic Republic of the Congo, AVZ Minerals focuses exclusively on its Manono lithium-rich pegmatite deposit, one of the largest in the world.
To increase the value of the project, the miner will leverage its expertise in the DRC, finance, and project development.
It is also currently in a legal battle; Chinese Zijin Mining, the country’s largest gold miner, has laid claim to 15% of the project, and AVZ has refuted these claims, claiming they are baseless and have nothing to do with the case.
This issue has been unresolved for the past four months, but AVZ assures that the results will be positive.
A British firm, AVZ Minerals, currently holds 75% of the Manono lithium project in the Democratic Republic of Congo. This is estimated to yield a substantial 400 million tons of lithium throughout its lifetime.
The operation has yet to be in effect, and the AVZ Minerals share price has dropped by 1.27% by the end of 2022.
9. Mineral Resources (ASX: MIN)
The market cap is $13.32 billion.
The stock’s price (as of 18/11/2022) is $83.17.
Stake Platform Activity: Bought: 42%; Sold: 58%
Mineral Resources operates a portfolio of mines across several regions, including Western Australia and the Northern Territory, but its core activities are the extraction of iron ore and lithium.
Key sites include Wodgina Lithium, the world’s largest hard-rock lithium deposit and expected to have a mine life of about 30 years.
The company operates the project in partnership with US giant Albemarle and, despite a production pause, is set to resume mining in Q3. It also has a 50% interest in the Mount Marion lithium project.
As MIN’s diversification into iron ore and global partnerships show, it is a safe choice for those with a fear of risk.
MIN is one of the world’s largest holders of hard rock lithium reserves, and by 2022 their mines in Australia are expected to produce 1.5 million tonnes of hard rock lithium for its projects.
In addition to lithium, the company mines iron ore and natural gas and has a corporate shared mining service.
10. Liontown Resources (ASX: LTR)
Total Value: $3.92 billion
Stock value (as of 18/11/2022): $1.97
This company’s equity portfolio changes between stock and securities to the extent that 66% of the trades over the last eight months have been long trades, and 34% have been short trades.
Liontown Resources seeks to identify, explore, and develop the minerals needed by the electric vehicle and energy storage industries that are on the rise.
It controls two lithium deposits in Western Australia, which it seeks to grow through partnerships and acquisitions and the exploration of new deposits. One of its major assets is the Kathleen Valley lithium project.
It is projected to supply 500,000 tons of 6% lithium oxide concentrate per year once production starts in 2024, with a mine life of 23 years. Additionally, it has over 15 million tons of 1% lithium oxide at The Kathleen Valley, and the Buldania lithium reserves of Liontown Resources are both preoperational.
11. Arizona lithium (ASX: AZL)
Formerly Hawkstone Mining Ltd, Arizona Lithium Ltd is a mining company engaged in mineral exploration and development.
It holds interests in the Big Sandy and Lordsburg Projects in the U.S. for lithium exploration, the Lone Pine Gold Project, and the Western Desert Project gold and copper exploration project.
Its U.S. asset portfolio holds investments in three markets: Gold, Gold/Copper, and Lithium. Income is derived from Australia and South Africa.
Hawkstone Mining Limited is a coal exploration company with projects including Mbila anthracite and Kangwane anthracite.
Arizona Lithium Limited has reported its earnings results for the fiscal year. The company said its revenue was AUD 0.028498 million as opposed to the previous year’s revenue of AUD 0.026702 million.
Annual net loss was $AUD 4.23 million, $AUD 3.46 million less than last year. The basic loss per share from continuing operations was $AUD 0.0048 compared to $AUD 0.0024 the previous year.
Diluted earnings per share from continuing operations were 0.0048 per share, up from 0.0024 last year. Basic earnings per share were 0.0019, up from 0.0024 last year.
Compared to the previous year, diluted loss per share has decreased from AUD 0.0024 to AUD 0.0019.
Should you Buy Lithium Stocks?
One of the most common questions investors ask is whether or not they should invest in lithium stocks. There are many great reasons why investing in lithium stocks could be a good idea.
For one thing, there’s a lot of demand for batteries and other energy storage forms, and this demand will likely only grow as renewable energy becomes more popular.
Plus, researchers have found that lithium mining can help reduce greenhouse gas emissions responsibly. So it’s worth looking at some of these top stocks on the ASX before you decide to invest in them.
Demand for lithium is expected to grow exponentially in the coming years. The global market will reach two million metric tons of lithium is met in 2030.
As you know, the demand for electric cars is rising while lithium is getting used in batteries, so the need for lithium is increasing.
Will Lithium Stocks Go Up?
It’s hard to say whether or not lithium stocks will go up in the next year. Many factors need to be considered. The best way to tell if you should invest is by looking at the company’s financials.
You can find this information on their website or the Australian Securities Exchange website. Investing in lithium stocks means investing in electric cars, which may become more popular.
Electric vehicles don’t require oil, so they’re environmentally friendly. What kind of investments are available? They don’t need oil to fuel them, so they’re environmentally friendly.
What are some potential risks? One potential risk is that the value of stock prices could drop significantly due to a global recession or major disaster.
What are the Small Cap Lithium Stocks in ASX ?
Many of the best lithium stocks are small-cap companies with high growth potential. These include METALS AUSTRALIA (ASX: MLS), SHREE MINERALS (ASX: SHH), TAMBOURAH METALS (ASX: TMB), and BRYAH RESOURCES (ASX: BYH). As lithium prices continue to rise, these stocks are also expected to increase.
Things to Know About ASX Lithium Stocks
Even though the demand for a certain material used in a product increases, it doesn’t necessarily mean a company will see greater sales and profits for themselves.
Thus, market prices can depend on supply and demand: when demand exceeds supply, prices will rise, and prices can also depend on production costs, like opening a new lithium project.
The best alternatives to lithium batteries are nickel-based ones, which charge quicker, have no memory issues, and can be fully charged from the start of each cycle.
And a nickel-based battery will reach high temperatures more quickly than an alkaline battery, which will require a cooling system.
It is harder and more expensive to manufacture lithium batteries, making electric vehicles more expensive. Because it is used so often, Nickel can already be recycled profitably.
However, unless a giant technological breakthrough occurs, lithium is likely to be the metal that drives the EV revolution.
Although volatile, the market cap of market leader Tesla currently hovers around $900 billion, roughly equivalent to the combined market cap of every other automaker in the world.
OICA estimates 57 million vehicles were produced in total in 2021, but it produced less than one million.
As Elon Musk has hinted in the past, he intends to start a lithium company to gain control of the supply chain and has compared lithium mining to ‘mining money.’
Globally, electric vehicles are expected to reach 6.6 million in 2023, according to the IEA. As legislation prohibiting the sale or manufacture of ICE cars in the future is being passed across vast swaths of the world, including the EU, UK, USA, and China, lithium demand will increase tenfold by 2030.
Lithium Stocks FAQs
What is lithium?
Lithium is the lightest on the periodic table and has a wide range of applications, including lithium-ion batteries, pharmaceuticals, and industrial applications.
Where is lithium mined?
Hard rock deposits and evaporated brine deposits provide lithium for mining. The world’s largest producer of lithium comes from Australia’s Greenbushes mine. Like Argentina and Bolivia, Chile is located in South America’s Lithium Triangle and produces lithium from evaporated brines, including the Salar de Atacama. Sedimentary deposits can also contain lithium, but none are currently productive.
How do lithium-ion batteries work?
Rechargeable lithium-ion batteries rely on lithium-ion energy to provide power to the device. A lithium-ion battery contains one or more cells, depending on its storage capability, and each cell has an anode and a cathode, with an electrolyte between them. During use, lithium ions will flow from the cathode to the anode, stopping once they have all changed direction. When the battery is charging, ions flow in the opposite direction.
Who is the biggest lithium producer in Australia?
In Australia, Pilbara Minerals (PLS) owns the world’s largest hard-rock lithium operations and produces over 377,000 metric tons of lithium annually.
Is lithium a good long term investment?
While demand for batteries continues to grow worldwide, lithium prices are likely to follow suit. Still, it’s important to keep in mind that just like any other resource, there could be a supply glut that sends prices plunging, not unlike what has happened with coal.
What are some good lithium ETFs to invest in?
As a burgeoning market with many options available in lithium, there currently needs to be more ETFs in the market. With no lithium ETFs, investors are left with only the choice of Global X Battery Tech & Lithium ETF (ACDC). Find out more about other Australian exchange-traded funds.
Why are lithium stocks going up ?
The main reason is the increasing demand for lithium because of increased demand in the market. The main reason is also growing demand because there is an increase in the production of electric vehicles. Lithium batteries are used as power sources, and it is the only choice.
How to buy lithium stocks ?
You can open a position on ASX stocks via share trading or derivatives trading. Share trading entails that you are taking direct ownership of the stock. Consider derivatives trading, for example, allowing you to speculate on a company’s shares without actually buying the company’s stock.
Lithium is a key component of batteries. As we move from fossil fuels to renewable energy sources like solar, wind, and water, lithium will be one of the most valuable commodities on the planet.
Predictions are that demand for lithium could triple by 2030. The best way to get started investing in lithium stocks is by looking at companies with large land banks and high production rates. These are two of the biggest factors when valuing lithium mining companies.
It’s important to look at how much they have in reserves and how much they produce per year. There are also other types of lithium miners- those who work on recycling old batteries or extracting the metal from rock deposits. It’s important to do your research before you make any investments!
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Disclaimer – Predictions are dependent solely on past data and research. The actual performance of the stock market will vary as a result of both foreseen and unforeseen reasons. To protect your finances, we recommend that you perform some of your own research before investing in the stock market.