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5 Best Lithium Stocks to Buy for Q1 2025
Lithium has become one of the most important metals as the world transitions from fossil fuels. It is widely used in the manufacture of batteries, which are popular in electric vehicles and energy storage units. Analysts expect that lithium’s demand will keep rising in the coming years. This article looks at some of the best lithium stocks for 2025.
What are the top lithium stocks to buy?
Copy link to sectionIn the table below, you can find our experts’ five best lithium stock picks. Click on the links to sign up with a broker and start investing, or continue reading to learn more about each lithium company.
| # | Stock ticker | Company name | Learn more |
|---|---|---|---|
| 1 | ALB | Albemarle | Learn more > |
| 2 | 002460 | Ganfeng Lithium | Learn more > |
| 3 | SQM | Sociedad Quimica y Minera de Chile | Learn more > |
| 4 | LTHM | Livent Corporation | Learn more > |
| 5 | LAC | Lithium Americas | Learn more > |
1. Albemarle (NYSE: ALB)
Copy link to section- Market Cap: $13.9 billion
- Forward P/E Ratio: 31
- 2023 Revenue: $9.6 billion.
- Country: Australia
Albermarle corporation is one of the worlds largest lithium producers. Headquartered in North Carolina, the company has lithium mining operations in the United States, Chile, and Australia. Additionally, it operates several battery-grade lithium manufacturing plants in China, Europe, and Australia.
Albemarle is listed in Australia and in the United States. In the past few years, the stock has dived sharply, falling by over 64% from its highest level in 2023. This drop happened as metals like lithium dropped because of oversupply.
Still, the company’s business is doing well as its revenue jumped to over $9.6 billion in 2023 from $7.32 billion a year earlier. While its profit dived to $1.57 billion, the management hopes that it will rebound in the coming years.
Albermarle is a good investment because of its market share in key industries, the quality of its assets, and the fact that most of its assets are in Australia. It has also become a bargain compared to other mining companies.
2. Ganfeng Lithium (SZSE: 002460)
Copy link to section- Market Cap: $8.7 billion
- Forward P/E Ratio: N/A
- 2023 Revenue: $4.65 billion
- Country: China
Gangfeng is China’s largest lithium company and offers the broadest exposure to the base metal of any company on our list. It has multiple lithium mining projects in the Chinese mainland and Australia, and has recently partnered with other miners in Ireland, Argentina, Mali, and Mexico.
In addition to its role as a lithium mining company, Ganfeng produces lithium batteries and provides a recycling facility that gives it wide exposure to the whole lithium supply chain. It sells its products in China and internationally, counting companies like BYD and Tesla as customers.
Investors looking to invest in a lithium stock will struggle to find another company offering the level of exposure Ganfeng does. Its international presence in lithium production and dominance in the ever-growing Chinese market put it in a great position to capitalise on the expected continuation of rising lithium prices.
The challenge for investing in Ganfeng Lithium is that it is not offered in the United States or in Europe. To invest in it, you might need to open a brokerage account in China, which is not an easy process.
3. Sociedad Quimica y Minera de Chile (NYSE: SQM)
Copy link to section- Market Cap: $13.4 billion
- Forward P/E Ratio: 11.2
- 2023 Revenue: $7.4 billion
- Country: Chile
Based in Chile, Sociedad Quimica y Minera produces a wide range of commodities such as iodine, nitrate, potassium, and lithium. Although located in South America, the company trades on the New York Stock Exchange and operates globally, with lithium sales in more than 110 countries.
Lithium makes up a small part of SQM’s business, but it claims to have the world’s highest concentration of the base metal. It supplies battery and industrial grade lithium and has grown lithium production to over 100,000 tons in 2021. Its share price has reflected its commitment to the lithium industry and has risen nearly 500% from 2020.
Sociedad Quimica y Minera de Chile isn’t a pure-play lithium stock and has a diversified business model. However, it appears to have taken steps to increase its share of the lithium market and has already joined forces with lithium miners in Australia, such as Kidman Resources. SQM offers a way to invest in lithium without risking it all on one specific chemical, making it one of the top lithium stocks for 2025.
While Sociedad Quimica y Minera de Chile is a Chilean company, it is publicly traded in the United States, where it averages about 200k shares per day. However, it is not covered widely by Wall Street analysts.
4. Arcadum Lithium (NYSE: ALTM)
Copy link to section- Market Cap: $4.6 billion
- Forward P/E Ratio: 18.49
- 2023 Revenue: $882 million
- Country: United States
Arcadium Lithium is a leading mining company that was formed with the merger of Allkem and Livent Corporation. The merger happened at a time when the price of lithium was in a deep dive. As a result, the logic was that the deal would help the two companies cut costs and create more synergies.
The deal also helped the two companies expand their geographical footprint. It now has a presence in Australia, Argentina, and Canada. Also, it helped it become the third-biggest company in the lithium industry.
Arcadium Lithium’s stock price has not done well since going public. It has crashed from almost $7 to about $4.20, giving it a market cap of over $4.6 billion. This decline could be a good entry point since I expect it to bounce back as lithium prices recover.
5. Lithium Americas (NYSE: LAC)
Copy link to section- Market Cap: $673 million
- Forward P/E Ratio: N/A
- 2023 Revenue: N/A
- Country: United States
Lithium Americas is a leading lithium mining company that is best known for having the biggest reserves in the United States. These reserves, which are in Nevada, are expected to come online in 2026.
The company completed a major strategy in 2023 that saw it separate from Lithium Argentina (LAAC). This separation was seen as a good way for the company to simplify its operations.
With its main asset being in Nevada, the company is still not making money. As a result, it has turned to the US government, which gave it a low-interest loan to help it develop its mine.
Therefore, there is a likelihood that the stock, which has now tumbled to an all-time low, willl start rebounding when it starts producing. The key risk is that the project could be delayed, which could force the management to dilute its shareholders.
Where to buy the best lithium stocks
Copy link to sectionIf you want to invest in any of the companies we’ve discussed above, you’ll need to register with an online broker that offers their shares. Below you can find a selection of our expertly selected platforms. Click on any of the links to register an account and buy the best rated lithium stocks.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
What is a lithium stock?
Copy link to sectionLithium stocks are shares in companies involved in the lithium industry, including mining, producing, and supplying lithium materials. Lithium is a soft, alkali metal crucial for manufacturing lithium-ion batteries used in electric vehicles (EVs), consumer electronics, and energy storage technologies.
Lithium producers are at the forefront of this industry, extracting lithium from various sources, including hard rock lithium deposits and lithium brine reservoirs. Australia and Chile are among the world’s largest lithium producers, contributing significantly to global lithium production.
Demand for lithium is expected to surge in the coming years, driven primarily by the growth of the EV market. Lithium-ion batteries power most EVs, and as EV sales continue to rise, so does the need for lithium.
Lithium is also used in other applications, including energy storage for renewable sources like solar and wind. As green energy becomes increasingly prevalent, the demand for lithium compounds, such as lithium carbonate and lithium hydroxide, is likely to remain high.
Given the anticipated growth in the EV and green energy sectors, investing in lithium stocks can be a long-term play. However, it’s important to note that this market can be volatile, and individual stocks may experience fluctuations in value, especially as lithium prices fall or supply chain disruptions occur.
Diversifying your portfolio through lithium ETFs like the Global X Lithium Battery Tech ETF that invests in a basket of global lithium stocks across the supply chain could be an easier option. .
Are lithium stocks a good investment?
Copy link to sectionYou should buy lithium stocks if you believe that the demand for lithium batteries and the EV market is going to continue to rise. While lithium has a broad range of uses, its most valuable in the production of batteries and, more specifically, in the electric vehicle sector.
As the world shifts away from traditional vehicles powered by petrol, EVs are expected to make up an increasing number of the total vehicles. The International Energy Agency predicts that by 2030 there may be as many as 125 million electric vehicles on the road. Such an increase would require significant growth in lithium production capacity, battery production, and other related lithium projects.
The lithium market remains volatile, however. There’s still a lot of uncertainty, and it’s difficult to predict which of the many lithium companies will be the ultimate winner from growth in the industry. One safer option is to invest in a lithium stock ETFs, such as the global x lithium & battery tech ETF, where you gain exposure to lots of lithium companies all at once.
Ultimately, whether lithium stocks are a good investment will depend on how big, and how quickly, the electric vehicle market grows. If you decide to invest, you should keep up to date with the latest lithium news and market analysis, which you can do on any of the links below.
Methodology: How we choose the best lithium stocks
Copy link to sectionAt Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.
- Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
- Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
- Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
- Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
- Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
- Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.
Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.
