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These Are the Top 5 Lithium Stocks to Own Right Now

Lithium Americas is a Canadian company operating in the U.S. and Argentina. It closed 2021 on a high and this year is inches from reprising last year’s stock success. Despite nearly a sixfold surge in the global lithium prices last year and almost 67% year-to-date, Albemarle Corporation stock added 15% in the previous 52 weeks but lost 18.5% during the same period.

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In 2021 the price of lithium doubled compared to the previous year and set a record in its most important market, China. According to a Bloomberg forecast, the demand for lithium will grow between 25% and 35% per year during the next decade, and a significant deficit is expected in the second half of the decade.

Lithium is a key component for electric vehicle batteries whose extraction and treatment is undergoing a process of change, with the aim of being able to satisfy its enormous demand within a transition towards the green economy.

This is all well-grounded on what is going on right now. Inflation and fuel prices are soaring, which has revved up electric vehicle (EV) adoption in key markets such as the U.S. and Europe. Benchmark Minerals says that EV penetration rate of 4.3% in 2020 will jump to 30.7% in 2030.

As things stand, lithium stocks are sizzling in preparation for the supply crunch that awaits around the corner. In this context, these are the top five lithium stocks to own right now  

Lithium Americas Corp (NYSE:LAC)

Lithium Americas is a Canadian company operating in the U.S. and Argentina. It closed 2021 on a high and this year is inches from reprising last year’s stock success. The stock ramped up by 132.03% in 2021 on the soaring price of spodumene and lithium carbonate.

The latter’s spot price in China quadrupled while it grew by 79% globally. President Biden’s extra support to mining companies is giving LAC stock a big push, and it is currently rated as a “buy” by MarketWatch. 

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American Lithium Corp (OTCMKTS:LIACF)

American Lithium Corp. said it would launch the last phase of its first preliminary economic assessment on the Company’s TLC Lithium project with the appointment of DRA Global as lead engineer.

The firm has various advanced lithium exploration projects in Peru and two in the U.S, and recently announced the acquisition of Green Technology Metals Ltd (ASX:GT1) shares for a total of $10 million.  

Albemarle Corporation (NYSE:ALB)

Despite nearly a sixfold surge in the global lithium prices last year and almost 67% year-to-date, company stock added 15% in the previous 52 weeks but lost 18.5% during the same period.

Overvaluation and off-target management expectations slapped a “sell” rating on ALB back in November. However, the company has since recovered and a sizeable improvement is on the cards in 2022.

Judging by a solid market outlook, stout growth, the higher lithium demand, and reasonable valuation, the stock is anticipated to recover back to a positive trend in the next quarters.

Sociedad Química y Minera de Chile (NYSE:SQM)

Among the several mining chemicals, the Chilean company extracts there is lithium carbonate. With a market cap of $21 billion and stock price increase of 43.6% year on year, SQM is a stock to own as the globe transitions towards electric mobility.

According to Simply Wall St, earnings are forecast to grow by 22.3% over a year after growing 225% in the last year. The consensus outlook for earnings per share (EPS) in 2022 has improved. While the net income forecast is expected to grow 194% next year, the consensus price target rose from $77.42 to U$80.92.

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Rio Tinto Group (NYSE:RIO)

Rio Tinto shares have a PE ratio of 5.50 as of April 25, and they offer a forward yield of 11.77%. The stock’s value has jumped by 7.28% over the last six months.

Rio Tinto Group is one of the best lithium stocks to buy right now —it is a high-momentum value stock pick that offers a great dividend. The company is betting hard on becoming “zero-carbon” while its gaining popularity among top hedge funds.

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(Featured image by capitalstreet_fx06 via Pixabay)

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Jacob Wolinsky is the founder and CEO of ValueWalk. What started as a hobby ten years ago has turned into an acclaimed financial media empire with over five million views a month. Before doing ValueWalk full time, Jacob worked as a private equity analyst, small-cap stock analyst, and in hedge fund business development. Jacob lives with his wife and four kids in Passaic, New Jersey.

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