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Lithium Stocks That Could Explode

Last modified: Jul 25, 2023

If you’re looking for something new to invest in, then you might be interested in lithium stocks. Currently, there are plenty of lithium stocks that could explode anytime due to their high demand. 

With the growing popularity of electric vehicles (EVs) and the development of new technology that uses lithium rechargeable batteries, no wonder so many people are looking to invest their money. It’s certainly an option worth considering, and that demand is only going to increase.

Lithium’s multiple uses are put to the test every passing day, and it’s not just rechargeable batteries we’re talking about. There’s also demand for lithium in medicine (treatment of certain disorders) and the production of glass and ceramics. Lithium stocks should be on your radar for one of your next big investments.

What Kind of Impact Does Lithium Make on the World?

Well, something so marvelous can’t be without its downsides, right? What are the actual drawbacks of the mass use of lithium batteries? Is it ethical to invest in something harmful? Before making any investment, these are questions worth asking as you don’t want your money to be put to a bad cause.

What Are Lithium Batteries?

Simply put, a lithium battery is a much more effective yet more expensive form of battery. These batteries have a high charge density, and they maintain a longer overall lifespan, making recharging a much more viable option. They’re widely used in smartphones, tablets, and EVs. 

The Environmental Impact

Like most batteries, lithium batteries reach the end of their lifespan at some point. While it’s not easy to retrieve the materials from the battery once its lifespan has ended, there are still methods of recycling these batteries for future usage. However, the recycling method is quite expensive. It’s pricier than mining the materials to create new batteries — so it’s not cost-effective.

The more significant impact comes from the mining side of things, and while there is a decent amount of money in lithium mining stocks, it’s up to you to decide whether or not that’s something you want to invest in.

Related: 5 Alternatives to Lithium Battery

Who Is Tesla’s Lithium Provider?

With Tesla’s popularity rising, the demand for their vehicles grows more and more, requiring a lot more lithium just to keep up. Therefore, Tesla has partnered with multiple different companies to meet their lithium needs, such as: 

  • Ganfeng Lithium Co (China)
  • Kidman Resources (Australia)
  • Pure Energy Minerals (Canada)
  • Joint venture partners Cadence Minerals and Bacanora Minerals (UK and Canada, respectively)

Ganfeng is the largest lithium producer in the world today.

How Much Do Lithium Stocks Cost?

A lot of the time, your ability to invest in something will depend on the stock prices. Stocks aren’t always accessible to those with less investing capital, which can be a problem. However, you’d be relieved to know that lithium stock prices vary so that anyone can take advantage of the possible lithium stock boom.

Before you invest, you should know what happened to lithium stocks. Why is there a sudden interest in investing, and why is the demand so high? 

Well, at first, it was Tesla leading with stylish and appealing EVs, but it’s no longer the only company with that focus in mind. Other car manufacturers are starting to follow suit, so the demand for lithium batteries is bound to increase rapidly. So, is lithium stock a good investment? It is; if you know where best to invest it.

When choosing what lithium company to invest in, you should consider your buying power. If you’re not looking to make a considerable investment, there are plenty of options with current prices as low as $15. But if you’re interested in making a significant investment with the hope of seeing a massive boom on a more successful company, consider stocks from companies like Albemarle (ALB) at around $200.

Is Lithium a Good Investment for 2022?

If you’re actively following the stock market, you must have noticed the changes that happen from time to time. Naturally, prices rise and fall, signifying nothing more than a temporary change in demand. However, there are still lithium stocks that could explode this or next year, making it very worthy of your investment. If you are a beginner - make sure to explore the best stock investment apps.

Are Lithium Stocks Currently Overvalued?

Well, it depends on when you’re reading this article, but those who are up to date with lithium stock prices know about the current dip in the market. From the outside, it might look like lithium stocks are on the decline and are a poor investment, but that would be assuming they’re not going to rise in the future. 

In 2021, lithium stocks were much higher than at the beginning of 2022, but that was before the oversupply. Now might be one of the best times to invest due to their much lower prices.

What Caused the Dip?

Being told to invest when there’s a current drop in lithium stock value might be quite alarming if you have no idea why that dip happened. 

The fall in lithium stock value was caused by a newly occurring oversupply in lithium materials. There’s much less demand right now, but that’s not due to the lack of need — but rather due to the excessive number of suppliers in the market. 

Lithium is an expensive material to get your hands on, and that demand is only going to rise again as EVs are being released to the market. Looking into the top lithium stocks before that rise could help you see some huge returns.

How Do I Buy Lithium Shares?

If you don’t know how to buy shares online, then you’ll want to sign up for a trading platform. You’re not directly investing in lithium; you’re investing in the shares of companies involved in lithium mining. 

There are many available stock markets and exchanges for you to access, depending on where you’re based, such as: 

  • New York Stock Exchange (NYSE)
  • London Stock Exchange (LSE)
  • Nasdaq

The choice is yours, but learn more about each of them before investing.

Five Lithium Stocks You Should Consider Buying

If you’re looking for the best lithium stocks available, you should act fast, as these are only going to rise in price. 

There are plenty of lithium battery stocks to buy out there, but not all of them will bring high returns. A quick look at any lithium stocks list will show you a lot of repeated names. Those are the companies worth investing in. 

The Top 5 Lithium Stocks That Could Explode

If you’re looking to invest directly in lithium producers, here are your best options:

  • Lithium Americas Corporation (LAC) - NYSE
  • Livent Corporation (LTHM) - NYSE
  • Sociedad Quimica y Minera (SQM) - NYSE
  • Albemarle Corporation (ALB) - NYSE
  • Piedmont Lithium (PLL) - NASDAQ

Alternatively, if you don’t want to invest in lithium stocks, you could consider investing in lithium battery stocks. The demand for batteries is the main factor set to increase, unlike lithium itself, which can be used for several different applications. 

Then there are also lithium recycling stocks to invest in. Right now, recycling lithium batteries is more expensive than mining the minerals, so there’s a market for new and improved research and development for recycling lithium batteries. Consider that there are countless lithium batteries due to retire within the decade, and that’s far too many to let go to waste — the value of recycling these batteries is worth thinking about.

Lithium Stock Buying Guide

If this is new territory for you, but you don’t want to miss out on the market’s potential, then you should do your best to keep up. Lithium is a flexible material used for a wide range of applications, which is always going to have demand. 

Getting involved in stock trading can be quite daunting. For those who have never done it before, it might feel like you’re just throwing your money down the drain, especially if you didn’t do your research before investing. You have to be ready and informed if you want to catch the best lithium battery stocks before they rise in value.

Choosing a Trading Platform

Without any prior experience, the idea of picking a platform might sound challenging. You should know that each platform has its advantages, and you might not be able to access certain stocks from some platforms. 

Some might restrict Chinese lithium stock trading; others might not have the top lithium mining stocks you’re interested in. Additionally, some platforms have higher fees, while others provide fewer restrictions when it comes to how you trade. 

Check out the perks of each platform, find out what kind of trading you want to take part in, and go from there.

Researching Stocks

If you want to find the best stocks within your price range, you have to research them to find out why their value is what it is. Learn why you should consider Canadian lithium stocks over Chinese lithium stocks. And what is the difference between lithium supplier stocks and lithium mine stocks? 

If you want to see high returns, you need to understand what you’re investing in. For example, if the price has gone down due to a temporary oversupply situation — that’s something that will rise in due time.

Your Strategy

Everyone has their own preferred way of trading. Sometimes it’s better to be patient, and sometimes it’s best to buy in and get out as soon as you’re ahead. You can’t always know how the market will perform, and if you feel like you’ve made enough from your investment — selling quickly might be the best strategy for you. 

For those who believe that the market is only going to grow, waiting it out could be the best option. Look at the crypto market: Bitcoin saw a lot of rising and falling until it got to where it is now. Those who were patient and held onto their Bitcoin investments made fortunes in the long run — but there’s never a guarantee.

Keeping a Close Eye

If you’re planning to sell your shares as soon as you’re happy with their value or due to a dip in the market — you’ll need to monitor the market regularly. It is also important to find adequate stock portfolio tracking apps and track your investments. The longer you go without looking, the more you stand to lose.

In Conclusion

If you’d like to see high returns on your investments, lithium stocks are a promising option. EVs are here to stay, and more and more companies are growing their demand for lithium. Additionally, the current oversupply causing the stocks to decrease in value will eventually die down. So, it’s an investment worth making if you’re not afraid of risks.


What Will Replace Lithium?

When it comes to batteries, lithium is currently the best material available on the market. However, that’s not going to last forever. While it might be worth investing in now, new kinds of batteries are already being developed, which will be a better option in the future. Of course, that could be light-years away.  Sodium-ion batteries are set to be the next best alternative to lithium-ion batteries. They’re said to be up to seven times more efficient than conventional batteries. Plus, they’re made from very cheap and available material.

Will We Run Out of Lithium?

Of course, there can only be so much lithium on the planet, and we’re using it at an incredible rate. Therefore, we may run out of lithium over the next few decades.

Will Lithium Prices Go Up?

Due to so many different applications of lithium, the prices are likely to rise. On top of that, there is a global supply shortage of the metal. So not only will the demand increase, but its scarcity will naturally make the value rise.  That’s why it’s worth looking into lithium stocks that could explode if you want to make the most of your investment money. As it currently stands, the prices are set to rise once the demand has caught up with the current amount of lithium supply available.

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