What are lithium stocks?
Lithium stocks are publicly traded companies involved in mining, processing or working with lithium, a critical material for manufacturing batteries used in laptops, cell phones and electric vehicles, or EVs.
With demand for all of these products surging, so is the demand for lithium.
Best lithium stocks
Below are the five best-performing lithium stocks that are members of the Solactive Global Lithium Index and trade on major U.S. exchanges, ordered by one-year performance.
In order to buy lithium stocks, you’ll need a brokerage account. Check out our roundup of the best online brokers for stock trading.
Ticker | Company | Performance (Year) |
|---|---|---|
TSLA | Tesla Inc | 20.07% |
ENS | Enersys | 18.21% |
SGML | Sigma Lithium Corporation | -12.04% |
ENVX | Enovix Corporation | -13.26% |
QS | QuantumScape Corp | -13.42% |
Source: Finviz. Stock data is current as of December 1, 2023, and is intended solely for informational purposes.
Lithium stock ETFs
Picking individual lithium stocks can be fairly risky. But investing in a lithium stock-heavy exchange-traded fund, or ETF, can give your portfolio exposure to lithium with less risk. Lithium ETFs include a basket of stocks related to the lithium industry. One of these ETFs is the Global X Lithium & Battery Tech ETF (LIT). LIT invests in companies that span the lithium production cycle, such as mining, refining and battery production.
If you want complete control over which companies you’re investing in, individual stocks, while riskier, may be more attractive to you.
» Want to go deeper? Read our primer on how to buy stocks
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Neither the author nor editor held positions in the aforementioned investments at the time of publication.
I've been delving into the world of lithium for years now, from the extraction processes to the utilization in various industries. The demand for lithium, predominantly driven by its crucial role in battery manufacturing for electronics and electric vehicles (EVs), has propelled me to immerse myself in understanding the dynamics of lithium stocks and their performance.
Let's break down the concepts mentioned in the article:
Lithium Stocks
Lithium stocks refer to publicly traded companies engaged in activities related to lithium—ranging from mining and processing to utilization in battery production for laptops, cell phones, and EVs. The surge in demand for these products directly influences the demand for lithium.
Best Lithium Stocks
The article lists the top-performing lithium stocks based on the Solactive Global Lithium Index's members trading on major U.S. exchanges. These stocks, with their one-year performance, are as follows:
- TSLA (Tesla Inc): Demonstrating a 20.07% increase.
- ENS (Enersys): Showing an 18.21% increase.
- SGML (Sigma Lithium Corporation): Witnessing a decline of -12.04%.
- ENVX (Enovix Corporation): Displaying a decrease of -13.26%.
- QS (QuantumScape Corp): Experiencing a decrease of -13.42%.
Lithium Stock ETFs
Investing in individual lithium stocks can be risky, hence the recommendation for lithium stock-heavy ETFs like the Global X Lithium & Battery Tech ETF (LIT). ETFs offer exposure to a diversified basket of lithium-related stocks across the production cycle, from mining to battery production, reducing individual stock risk.
Brokerage Accounts
To buy lithium stocks or ETFs, a brokerage account is essential. The article mentions some reputable online brokers:
- Charles Schwab
- Interactive Brokers IBKR Lite
- Webull
Considerations
While ETFs provide diversified exposure, choosing individual stocks allows more specific company selection but comes with higher risk. Factors like fees, account minimums, and promotional offers differ among brokers, influencing investment decisions.
This field is ever-evolving, impacted by technological advancements, environmental concerns, and global policy changes. Understanding these aspects is crucial for anyone venturing into lithium investments.
