8 Best Lithium Stocks Of October 2023 (2024)

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Albemarle Corp is among the largest and most prominent lithium stocks. The company is one of the leading lithium miners, with a market value on par with other leading commodities names like Barrick Gold Corporation (GOLD).

Lithium prices have been weak in 2023, and ALB stock has been volatile as a result. Thanks to the company’s scale, plus the long-term forecasts for EV demand, Albemarle remains one of the best lithium stocks available on the market today.

On the heels of a massive production expansion plan in South Carolina, ALB is now projecting its annual capacity to be roughly 225,000 metric tons of lithium. The company says this should roughly triple by 2030.

Chile is well-known around the world for its mineral riches, and Sociedad Química y Minera de Chile—commonly known as SQM—is at the center of the South American country’s mining industry.

SQM produces other minerals, but lithium plays an outsized role in the company’s business. In 2022, the company posted the highest revenues in its corporate history, topping $10.7 billion in sales. Around 76% of that amount was attributable to lithium and related products.

The company is also the single largest taxpayer in Chile, which has prompted recent discussion about the government taking an increased stake. Generally, government ownership is a double-edged sword as it comes with the increased risk of political meddling.

Shares of SQM were up nicely until late 2022, when they took a tumble on weaker lithium prices coupled with fears that the company might not get a fair price for the increased government stake.

Mid-cap lithium stock Mineral Resources Limited is a global materials company headquartered in Australia with a portfolio that includes iron ore mining and logistics services in addition to its robust lithium output.

In fiscal year 2022, Mineral Resources recorded nearly $380 million in dedicated earnings from its lithium business. And looking forward, a proposed joint venture with Albemarle could yield even bigger results down the road.

In the U.S., Mineral Resources is traded over the counter. That means liquidity is much lower for this stock, with an average volume of only about 1,000 shares traded each day.

Livent is a smaller operation than many others on this list, but nevertheless it’s a comfortably profitable lithium stock. The company’s sole line of business is battery-grade lithium hydroxide, making it a great pure-play option.

LTHM is growing fast, based on big plans, which include more than $1 billion in capital spending to expand capacity in its Argentina operations through 2026.

These investments and others around the world continue to boost both LTHM’s footprint as well as its revenue stream. In the current fiscal year, Wall Street’s consensus estimate is for more than 30% expansion in Livent’s top line—followed by another 23% growth in fiscal year 2024.

The smallest company on this list as measured by market cap, Lithium Americas stands out as one of the best lithium stocks in terms of five-year appreciation. The stock has almost tripled in value since the summer of 2018, dwarfing the performance of the bigger players.

Additionally, LAC is listed on the NYSE and very liquid, with volume comfortably above 1 million shares traded each day.

There admittedly isn’t a ton of analyst coverage here, given that this is a niche company of smaller size. But while we may not have expert forecasts, we do have an outlook for continued profitability from the company going forward.

On top of that, General Motors just pledged a $650 million equity investment into LAC in part to provide certainty around its electric vehicle business, proving that Lithium Americas has a direct connection to the future growth of the EV market.

The returns of all other stocks look downright pathetic when compared with Sigma Lithium, a Canadian company that has brought investors a better than 3,000% return over the past three years.

Part of that massive run has simply been a function of accessibility, as shares previously listed on the Toronto stock exchange were also listed on the Nasdaq stock exchange in the U.S. toward the end of 2021.

Analysts expect SGML to operate at a loss this fiscal year—and adding to uncertainty is a rather embarrassing notice that “transition challenges” related to the deployment of new software and systems recently pushed back its annual filing.

Given all this, there’s certainly reasons to doubt whether the meteoric rise of Sigma can continue uninterrupted in the months to come. But its jaw-dropping run makes the name a worthy addition to this list of the best lithium stocks.

Based in China, Ganfeng Lithium Group operates globally, with mining interests in Australia and Africa.

The company is legitimate from a size and operational perspective, but its dual-listed shares are currently available on the Hong Kong Stock Exchange and the Shenzhen Stock Exchange, and not on any major U.S. exchange. That means you’re trading OTC, with daily volume of only a few hundred shares.

As long as you trade responsibly using limit orders and small lot sizes, the unique nature of this Chinese lithium company definitely makes it a stock to watch.

It continues to invest heavily in Chinese operations, including a recent report it will invest about $360 million in the Chinese city of Xiangyang to build a new lithium battery project, increasing its influence on the local EV marketplace.

Australia’s Pilbara rounds out this list of the top lithium stocks. The company owns a 100% stake in a lithium project located in the Pilbara region of Western Australia.

Though not exactly small, Pilbara is a bit difficult to research given that it trades over the counter and lacks analyst coverage in the U.S. Nevertheless, average daily trading volume is more than 200,000 shares, and its 2022 annual report shows it is indeed profitable with more than $500 million in adjusted earnings.

There’s a bit more uncertainty in this under-the-radar stock, but its five-year performance shows that there may be nice rewards for those who aren’t turned off by the risks.