In this article, we will discuss the top Australian Lithium Stocks; lithium shares on the ASX have been one of the most popular investments on the market. In recent years Australian Lithium Stocks have overtaken technology equities. These were popular before the COVID-19 epidemic that flipped the market on its head.
As the globe continues to develop a new sector for producing electric vehicles (EVs). The price of Australian Lithium Stocks has skyrocketed.
According to Trading Economics, the price of Australian Lithium Stocks has risen by 80% so far this year. Additionally, “growing demand coincides with declining supply.”
This is particularly true for emerging firms that are gaining popularity as they expand. The price of a firm’s stock may rise because investors believe the company will generate money in the future rather than because it is now profitable.
A rising stock price does not necessarily indicate that a firm is doing well or that its management is doing well. When considering ASX lithium shares as an investment, it is not enough to look at how the share prices have moved lately. You must thoroughly investigate each factor to ensure that it is reputable.
Australian Lithium Stocks
In the past year, dozens of new lithium stocks have been listed on the Australian Securities Exchange (ASX). Take advantage of Australian investors‘ growing interest in lithium explorers and producers.
When there is already a lot of interest in a certain industry, amazing stories might help share prices go up. It’s common for a “virtuous cycle” to start when the price goes up. This is because people buy because of a great story. This brings in people who are hopeful about making quick money. They then raise the price, which brings in even more hopeful people.
As the market moves from a buying frenzy to a more stable state. The early adopters’ paper gains tend to turn into real money.
How to buy Australian Lithium Stocks
- Sign up for a stock market exchange like Webull or E*Trade to start trading.
- Do your research to find the right stocks for you. Use our news and analysis tools to keep up with what’s happening in the lithium industry and elsewhere.
- Choose a way to move forward. Your trading strategy will tell you when to get into and out of a trade. You can “go long” and buy the stocks or “go short” and sell it, depending on the direction of the price.
- Put safety first and do what you need to do to stay safe. Before signing any agreements, ensure you fully understand the rules for risk management.
- Choose the size of the trade and go for it. Stop-loss orders and other orders for managing risk can be put on the trade and confirmed.
- Make sure your trade is closed at the right time. If you’re making money in a trade, stick to your plan and get out at the target price.
The Best Australian Lithium Stocks
Pilbara Minerals (ASX: PLS)
As a low-cost, long-term, sustainable lithium producer, Pilbara Minerals is prepared for the “global energy transition.”It boasts that it is “100% owner of the world’s biggest independent hard-rock lithium facility“. It is the “top ASX-listed pure-play lithium firm.”
They work with Ganfeng Lithium and General Lithium. They produce spodumene, and tantalite concentrates. This is at their Pilgangoora mine in the Pilbara region.
To meet the rising demand for renewable energy technologies, the firm plans to become an “integrated lithium raw materials and chemicals supplier in the years to come.”
Piedmont Lithium (ASX: PLL)
Piedmont Lithium has said that “building a world-class integrated lithium corporation in the United States” is the firm’s primary objective. It has a foothold in the Carolina Tin Spodumene Belt. This is known as the “cradle of the lithium industry” in North Carolina.
Core Lithium (ASX: CXO)
Core Lithium’s Finniss Project in Australia’s Northern Territory is one of the country’s least-priced spodumene lithium ventures. A formal feasibility study paid for by the prospector revealed that the mine could produce 173,000tpa of lithium concentrate over ten years.
This year, with the price of lithium at an all-time high and operating margins at an all-time high. Managing Director Stephen Biggins’ “main mission” is to get the Finniss Project to produce its first batch of high-quality lithium concentrate.
The mine offers “arguably the greatest infrastructure and supply network to Asia of any Australian lithium project,” giving it a significant market edge. Darwin Port, just 88 kilometers distant, is the nearest port to Asia.
Loneer (ASX: INR)
Loneer has the potential to become the first firm in the United States to manufacture lithium compounds in more than sixty years. There are only two lithium-boron deposits known to exist anywhere in the globe. Both locations are in Nevada, and the miner has complete authority over the Rhyolite Ridge Lithium-Boron project.
The feasibility study for the year 2020 suggests that due to the presence of a world-class project and a globally significant deposit, this location has the potential to become a key supplier of lithium for decades to come.
The company has begun doing research for a significant financing initiative with the United States Department of Energy. It has signed a deal to provide NexTech batteries sourced from the mine.
Sayona Mining (ASX: SYA)
Sayona Mining is a new lithium producer based in Western Australia with assets in Quebec, Canada. Following North American Lithium’s acquisition, it partnered with Piedmont Lithium to do business in Quebec.
It also owns 60% of the Moblan project, which it intends to integrate with the adjacent Authier and Tansim projects to become a worldwide center.
The firm holds a substantial gold and lithium tenement in Western Australia. It is “dedicated to downstream processing in Quebec to service the rapidly developing North American battery and electric vehicle (EV) industry.”
Liontown Resources (ASX: LTR)
According to their goal statement, Liontown Resources wants to “find, develop, and provide battery materials required for the fast-increasing Electric Vehicle and Energy Storage industries.“
It has two lithium deposits in Western Australia and is actively seeking to expand its holdings via acquisitions, joint partnerships, and other strategic measures. The Kathleen Valley deposit is the project’s foundation and one of the world’s biggest and greatest hard rock lithium deposits.
The project is planned to generate 500,000 tons of 6% lithium oxide concentrate per year for the next 23 years after production begins in 2024. Buldania, the company’s second project, might contain more than 15 million tonnes (1%) of lithium oxide.
Mineral Resources (ASX: MIN)
Mineral Resources primarily mines iron ore and lithium in Western Australia and the Northern Territory, but its operations are expanding to include a diverse range of goods and services.
Wodgina Lithium is significant because it contains the world’s largest hard-rock lithium deposit, which can be mined for another 30 years. Following a brief hiatus, it and the US mining company Albemarle are now co-managing the project.
They intend to begin mining operations in the third quarter of this year. It also has a 50% stake in the Mount Marion lithium property, which it shares with Ganfeng Lithium.
Because it has expanded into iron ore and works with large international corporations, MIN is a safer bet for investors who don’t want to take risks.
Allkem (ASX: AKE)
Orocobre and Galaxy Resources, two of the biggest names in the lithium industry, merged to form Allkem last year.
It owns a global portfolio of lithium chemicals, including many of the best. The headquarters of the company are in Buenos Aires. It has lithium operations in Argentina, Australia, and Japan, with plans to expand to meet rising demand.
Toyota, the Jujuy provincial government, and Prime Planet Energy & Solutions are all associated with the company. By 2026, it hopes to have tripled its output and discovered 10% of the world’s lithium.
Finally, there are several ways to invest in Australian Lithium Stocks. Lithium can be extracted from three deposits: brine, pegmatite, and sedimentary. Australia is the world’s largest producer of sedimentary lithium. People interested in lithium frequently divide their funds among the three types.