7 Lithium Stocks with Huge Return Potential for Long-Term Investors

Lithium stocks may have slipped. But don’t write them off just yet. With plenty of demand forecasts suggesting we’ll run short of the metal, lithium prices could explode. According to International Energy Agency, “Global sales of electric cars are set to surge to yet another record this year, expanding their share of the overall car market to close to one-fifth.”

In addition, the IEA noted, “The new edition of the IEA’s annual Global Electric Vehicle Outlook shows that more than 10 million electric cars were sold worldwide in 2022 and that sales are expected to grow by another 35% this year to reach 14 million.”

Also, according to Stellantis CEO Carlos Tavares, “We now have 1.3 billion cars (that are) internal combustion engine power on the planet. We need to replace that with clean mobility. That will need a lot of lithium. But, not only the lithium may not be enough, but the concentration of lithium mining may create other geopolitical issues,” he said, as quoted by The Detroit News.

In short, use weakness in the lithium market as an opportunity to buy these top lithium stocks.

LTHM
Livent Corp.
$22.98
LAC
Lithium Americas
$19.91
BATT
Amplify Lithium and Battery Technology ETF
$12.44
LIT
Global X Lithium & Battery Tech ETF
$60.77
LITP
Sprott Lithium Miners ETF
$17.25
ALB
Albermarle
$180.61
PLL
Piedmont Lithium
$55.76

Livent Corp. (LTHM)

Source: Ralf Liebhold / Shutterstock

Lithium producer Livent (NYSE:LTHM) crushed earnings, posting earnings per share of 60 cents on $235.5 million in sales. The Street was only looking for 39 cents in earnings on sales of $230.2 million. Even better, LTHM raised its full-year guidance. It now expects its EBITDA to fall between $530 million and $600 million. That’s well above prior EBITDA guidance for $510 million to $530 million.

“Strong lithium demand growth continued in 2022,” said Paul Graves, president and CEO. “Published lithium prices in all forms have increased rapidly amid very tight market conditions, and Livent continues to achieve higher realized prices across its entire product portfolio.”

The company has 17 offices or manufacturing facilities, including its “largest and most diverse manufacturing facility” in North Carolina. It will also soon start phase two of its carbonate capacity expansion in Argentina, with commercial production expected to begin this year.

Lithium Americas (LAC)

Source: Wirestock Creators / Shutterstock.com

Lithium Americas (NYSE:LAC) is the developer of North America’s largest known lithium source, the Thacker Pass mine.

For that reason alone, that makes it one of the top lithium stocks to own. First, according to the International Energy Agency, the world will likely see lithium shortages by 2025. Two, LAC just started construction at its Thacker Pass lithium project. Third, the company just received a $650 million investment from General Motors (NYSE:GM) to accelerate the project’s development. Lithium Americas is expected to make its first delivery in the second half of 2026, at which point the profits should roll in.

Finally, Lithium Americas just completed the acquisition of Arena, which owned 65% of the Sal de la Puna project. “With the completion of the acquisition, we have taken a big step towards consolidating the Pastos Grandes basin,” said John Kanellitsas, Vice Chairman of Lithium Americas. “While our focus remains on near-term production startup at Caucharí-Olaroz, the addition of Arena provides increased flexibility as we continue to advance our growth plans in Argentina.”

Amplify Lithium & Battery Technology ETF (BATT)

Source: Shutterstock

Or, look to diversify, at a relatively low cost, with an exchange traded fund such as the Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT). With an expense ratio of 0.59%, the BATT ETF provides exposure to global companies deriving material revenue from developing, producing, and using lithium battery technology.

Some of its top holdings include Tesla (NASDAQ:TSLA), Albemarle (NYSE:ALB), Sociedad Quimica (NYSE:SQM), and Panasonic (OTCMKTS:PCRFY).

Global X Lithium & Battery Tech ETF (LIT)

Source: Shutterstock

Or, look at the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) as another hot lithium opportunity. With an expense ratio of 0.75%, the LIT ETF invests in the complete lithium cycle. Everything from mining and refining the metal through battery production.

Some of its top holdings include Albemarle, TDK Corp. (OTCMKTS:TTDKY), Panasonic, BYD Co. (OTCMKTS:BYDDF), Tesla, Livent Corp. (NYSE:LTHM), Piedmont Lithium (NASDAQ:PLL), and Standard Lithium (NYSEAMERICAN:SLI).

Sprott Lithium Miners ETF (LITP)

Source: Shutterstock

Another ETF to consider is the Sprott Lithium Miners ETF (NASDAQ:LITP). In fact, with an expense ratio of 0.65% and 34 holdings, this is the only ETF to provide pure-play exposure to lithium miners. These are the companies that supply a critical mineral for the batteries that store clean energy and support the EV revolution, as noted by Sprott ETFs.

Some of its top holdings include Alkem (OTCMKTS:OROCF), Pilbara Minerals (OTCMKTS:PILBF), Albemarle, Lithium Americas, Standard Lithium, and American Lithium (NASDAQ:AMLI).

Albemarle (ALB)

Source: IgorGolovniov/Shutterstock.com

There’s also Albemarle. Granted, it may not have the most attractive chart now.

However, don’t write this one off, either. In fact, with heavy EV demand, I’d use recent ALB weakness as a buying opportunity. Plus, as we wait for lithium prices to push higher and for ALB stock to recover, we can get paid to wait. Earlier this week, the company announced a quarterly dividend of 40 cents per share, or $1.60 annualized. It’s payable July 3 to shareholders of record as of June 16.

In addition, we also have to consider that global lithium demand is expected to grow five-fold by 2030. The U.S. is a significant driver of that demand, and Albemarle is a prominent name domestically, as InvestorPlace contributor Alex Sirois noted.

Piedmont Lithium (PLL)

Source: T. Schneider / Shutterstock.com

Rounding out this list of lithium stocks to buy is none other than Piedmont Lithium. I’d use weakness to accumulate this lithium stock, too. For one, the company strongly focuses on the Tin Spodumene Belt of North Carolina. It’s also called the “cradle of the lithium industry,” as Piedmont Lithium’s website notes.

Also, according to President and CEO Keith Phillips, “America’s pro-EV and battery manufacturing policies are providing an advantage to Piedmont at a time when many analysts are projecting lithium shortages to continue into the 2030s. In addition, Piedmont’s selection for a $141.7 million grant last year by the U.S. Department of Energy exemplifies America’s commitment to developing a domestic lithium supply chain.”

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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