`The best lithium stocks to buy question coupled with answers from this article is only possible because as an investor, it has become apparent that things cannot remain the way they are.
The need for lithium ranges from environmental issues to logistics and energy problems, some things have to change.
Investors who do not find themselves out there mining the lithium can place bets on the likelihood of certain companies doing very well. These companies can either be mining, distributing, exploring, or using the lithium generated, but some people need them.
This article is a solid attempt at helping retail investors who do not know their way around topics like this. It could also serve as an indication of demand, and perhaps a current lack of supply capacity.
Introduction
Lithium is not regarded as a scarce resource, and so are the best lithium stocks to buy. It’s found on every continent, as stocks are found now in apps. Ores, i.e. pegmatites (e.g. Li-Al-Si containing spodumene), or salt lake brines, are the primary raw material sources.
According to recent estimations, known lithium deposits total more than 40 million tons of Li, or more than 210 million tons of lithium carbonate equivalents.
Even though the rising usage of lithium-ion batteries poses an obvious environmental concern and is not a long-term solution for fossil-fueled energy generation, nations all over the globe are committing to battery power as part of their carbon-neutrality goals.
Aside from the increasing production of electric cars, which will continue to drive demand for lithium-ion batteries, the battery’s lifespan remains limited. Lithium-ion batteries lose 70-90 percent of their capacity in just five years.
Because of their short lifespan, lithium-ion batteries will continue to be in high demand to replace those in commonly used battery-powered items like electric automobiles.
What are lithium stocks?
The shares of firms that mine or process lithium are known as lithium stocks. Traders cannot invest in lithium as a commodity, unlike other precious metals such as gold and palladium.
Investing in publicly traded lithium firms, on the other hand, might provide them with exposure. This is analogous to uranium stockpiles and actual uranium.
Lithium is mostly obtained from spodumene mines or brine sources. Australia has the most spodumene mines, despite being one of the world’s greatest lithium producers.
The majority of brine production takes place in South America. Lithium carbonate and lithium hydroxide are the two major kinds of lithium manufactured by enterprises.
As demand develops, producers concentrate on making lighter, quicker devices while also being mindful of the sorts of lithium utilized in their manufacturing.
The demand for lithium has risen dramatically in an environment where renewable technology is quickly advancing. Large firms like Tesla rely on lithium as a fundamental component of their products.
Whereas some traders are concerned about future market instability, others see investing in the best lithium stocks to buy as a fantastic way to profit from an industry with a tremendous surge in demand.
Best lithium stocks to buy in 2022
These are the best lithium stocks to buy that you can invest in to ride this wave of demand that may see these companies become giants.
#1 – Tesla, Inc.
Tesla, Inc. develops, manufactures, and sells completely electric automobiles and energy generating and storage technologies.
Vehicle servicing centers, supercharger stations, and self-driving capability are also available. On this list, it is the best lithium stock to buy. Check out how to buy Tesla stock here.
The business is divided into the following segments: Vehicles and energy generation and storage. Electric cars are designed, developed, manufactured, and sold in the Automotive industry.
Design, manufacture, installation, sale, and lease of stationary energy storage products and solar energy systems, as well as the sale of electricity generated by its solar energy systems to customers, are all part of the Energy Generation and Storage segment. It creates energy storage solutions in homes, businesses, and power plants.
Because lithium, a vital component in battery manufacture, has become so expensive, Elon Musk stated that Tesla may enter into the mining and refining industry directly and at scale.
“Lithium prices have reached ridiculous heights,” Musk said on Twitter. “Lithium occurs nearly everywhere on Earth, therefore there is no lack of the element itself, but extraction and refining are sluggish.”
#2 – Enphase Energy
Enphase Energy, a worldwide energy technology business established in Fremont, California, is the world’s top provider of microinverter-based solar and battery systems that allow consumers to harness the sun to create, use, save, and sell their power—all while controlling it all through a smart smartphone app.
With its microinverter-based technology, the business has transformed the solar sector and now offers solar, battery, and software solutions.
More than 42 million Enphase microinverters have been sold, and 1.9 million Enphase-based systems have been installed in more than 130 countries.
#3 – FMC Corporation
Following the previously disclosed plan to split FMC Lithium into a publicly listed company, FMC Corporation (NYSE: FMC) today announced that it will rename its lithium materials business as Livent Corporation (pronounced lye-vent).
The FMC Corporation is one of the world’s most valuable lithium suppliers. The corporation received top prizes in the Best R&D Pipeline and Best Biological Product (Biostimulant) categories at the Crop Science Forum and Award 2020.
After being in business for years, FMC Corporation has outstanding technology and strong customer relationships, and it continues to invest in discovering solutions that serve to improve people’s lives.
FMC is now the industry leader in three chemical markets: Agricultural, Specialty, and Industrial.
For more than 40 years, FMC has been a prominent manufacturer of lithium compounds. Livent’s strengths as a fully integrated lithium technology leader with a broad portfolio of products for electric vehicles and other energy storage applications, polymers and synthesis, lithium alloys, high-performance lubricants, and other specialty uses will be leveraged as an independent company.
#4 – Quantumscape Corporation
On our list of the best lithium stocks to purchase in 2022, Quantumscape Corporation is at the top of the list.
Bill Gates and Volkswagen have invested in QS, a startup firm. Solid-state lithium-metal batteries for electric cars are developed and commercialized by the firm.
The firm has developed a ground-breaking battery technology that can transform the electric vehicle (EV) industry.
Meanwhile, the company’s stock is down 10% year to date and 62.1 percent from its 52-week high.
Quantumscape Corporation’s cooperation with Porsche was recently mentioned in Manager Magazin, a German monthly business publication. Its solid-state batteries are planned to be used in the electric version of Porsche’s 911 sports vehicle.
QS formed a strategic relationship with Fluence, a stationary energy storage provider, in January 2022 to test and certify its solid-state batteries for use in its patented energy storage systems.
If the company’s testing phase with Fluence goes well, it will create significant profits for its owners.
#5 – Energizer Holdings, Inc.
Energizer Holdings, Inc., a common household battery provider, is ranked at the top of our list of the top lithium stocks to purchase right now.
ENR specializes in various battery types, including lithium, alkaline, carbon size, and silver oxide. The firm reported $0.83 earnings per share and $1.03 adjusted profits per share for the first quarter of 2022 on February 7, 2022.
The operational model of Energizer varies by country and area of the world, but it comprises a mix of independent and shared business operations between product categories.
Sales and marketing functions, as well as human resources, IT, and finance shared service expenses, are all examples of shared functions.
Energizer uses a fully allocated cost base, which divides up shared business operations among segments. These allocations are estimates and do not reflect the costs of such services if performed separately.
The acquisition of Battery and Auto Care by Energizer enhanced the company’s battery business. As a result, the corporation will position itself as a worldwide leader while diversifying its operations by adding brands.
It increased the size of its industrial facilities. In addition, it has streamlined its legacy plants to increase cost and efficiency during the last five years.
Energizer raised pricing on its legacy batteries to take advantage of high demand. In the United States, the prices of Energizer MAX and Energizer lithium products increased.
#6 – EnerSys (NYSE:ENS)
EnerSys, a global pioneer in stored energy solutions for industrial applications, designs and sells energy systems, motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories, and outdoor equipment enclosures to clients worldwide.
Telecommunication, broadband, and utility businesses and uninterruptible power supply employ Energy Systems, which include enclosures, power conversion, power distribution, and energy storage.
With the addition of high-performance NexSys® iON batteries to its power solution portfolio, EnerSys®, the global leader in stored energy solutions for industrial applications, is changing material handling operations.
NexSys® iON batteries are created using sustainable Nickel Manganese Cobalt (NMC) large format prismatic cell chemistry that has been thoroughly researched and manufactured to offer high energy capacity in a compact footprint, combining the latest lithium-ion chemistry with cost-effective flexibility.
They’re built to fulfill the Automotive / Rigorous Functional Safety Standard ISO 26262, which goes above and beyond typical industrial compliance requirements.
#7 – Albemarle Corporation
Albemarle, one of the world’s major makers of lithium compounds, is reacting with an investment at its Silver Peak, Nevada, facility, while other smaller companies are looking for investors to help them develop their lithium discoveries.
These businesses anticipate substantial global demand for the battery material, but they also claim that automakers in North America want a solid, long-term supply.
Albemarle’s distant Nevada plant, where it collects lithium from subterranean brines, is now the sole lithium recovery facility in the United States.
The firm claims that by 2025, it will have doubled its brine extraction capacity from $30 million to $50 million.
According to Norris, Albemarle is looking for more local lithium supplies that it can use if prices allow. Lithium-containing brines are controlled by the company in Arkansas as part of its bromine operation.
It may restart mining spodumene rock formations in Kings Mountain, North Carolina, with a lithium chemical facility. Until the discovery of cheaper lithium resources in South America in the 1980s, the region provided the majority of the world’s lithium.
Sedimentary deposits at Silver Peak are another source Albemarle is looking at. Norris argues that the lithium in the brines came from those clay deposits.
On the other hand, lithium concentrations in clay are lower than in brines and hard rock deposits.
#8 – Lithium Americas Corporation (NYSE:LAC)
Lithium Americas Corporation, one of the leading lithium manufacturers, is placed tenth on our list of the best lithium stocks to purchase right now. The corporation in Argentina and Nevada owns large-scale assets.
The Thacker Pass project is the centerpiece of LAC’s efforts. In September 1985, FMC Corporation purchased LAC.
In the United States and Argentina, Lithium Americas Corp. is a resource corporation. The firm searches for lithium deposits.
It has stakes in the Cauchari-Olaroz project in Argentina’s Jujuy region, the Thacker Pass project in northwestern Nevada, and the Pastos Grandes project in Argentina’s Salta province.
Western Lithium USA Corporation was its previous name until March 2016, when it was renamed Lithium Americas Corp. Lithium Americas Corp. was founded in 2007 and is based in Vancouver, British Columbia
Conclusion
Although the rising usage of lithium-ion batteries poses an obvious environmental concern and is not a long-term solution for fossil-fueled energy generation, nations all over the globe are committing to battery power as part of their carbon-neutrality goals.
Because of their short lifespan, lithium-ion batteries will continue to be in high demand to replace those in commonly used battery-powered items like electric automobiles.
The best lithium stocks to buy listed here may offer you the opportunity to profit from the lithium bull run.
References
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