How To Invest In ASX Lithium Shares (2024)

FAQs

Are lithium stocks a good buy ASX? ›

The one lithium miner that Goldman is recommending as a buy despite its bleak view for the battery making ingredient is IGO Ltd (ASX: IGO). It has a buy rating and $7.50 price target on IGO's shares. Goldman likes IGO due to its low cost Greenbushes operation, which remains profitable in the current environment.

In order to buy lithium stocks, you'll need a brokerage account. Check out our roundup of the best online brokers for stock trading. Source: Finviz. Stock data is current as of March 29, 2024, and is intended solely for informational purposes.

Arizona Lithium is bordering on breakeven, according to some Australian Metals and Mining analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$14m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today.

Core Lithium shares could still be overvalued

The team at Goldman Sachs agrees with this view and has a sell rating and 12 cents price target on Core Lithium's shares. This suggests potential downside of 20% from where its shares trade today.

Pilbara Minerals is 'ready for the global energy transformation,' and well-positioned to be a low-cost, long-term sustainable lithium producer. It describes itself as the 'leading ASX-listed pure-play lithium company, owning 100% of the world's largest, independent hard-rock lithium operation.

However, the long-term outlook of lithium stocks remains strong due to the strong uptick in demand for electric vehicles. As a result, experts are forecasting that lithium carbonate prices might stabilize between $20,000 and $25,000 per metric ton from 2024 to 2027.

At the end of 2021, Tesla inked a fresh three year lithium supply deal with top lithium producer Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460). The Chinese company will provide products to Tesla for three years starting in 2022.

There are no dividends for Arizona Lithium Limited (AZL).

Why is Arizona Lithium stock dropping? ›

Arizona Lithium Ltd (ASX: AZL)

The Arizona Lithium share price is down 6.5% to 7.95 cents. This appears to have been driven by the completion of the the lithium explorer's $12 million placement at a discount of 7 cents per share this morning.

Based on 8 Wall Street analysts offering 12 month price targets for Lithium Americas Corp. in the last 3 months. The average price target is $8.57 with a high forecast of $15.00 and a low forecast of $6.00.

In my view, lithium is poised to surge higher in the coming years and this will translate into multibagger returns from lithium stocks. The best time to buy is when sentiments are depressed than in times of euphoria. It's worth noting that the global demand for lithium batteries is likely to surge five-folds by 2030.

Albemarle Corporation (ALB)

That said, ALB remains the largest and perhaps the most prominent option for lithium investors as it boasts the biggest market value of any publicly traded stock in the U.S. with a focus on this battery metal.

Top Shareholders

State Street Global Advisors, Inc. The Vanguard Group, Inc. Sichuan Yahua Industrial Group Co., Ltd.

However, the long-term outlook of lithium stocks remains strong due to the strong uptick in demand for electric vehicles. As a result, experts are forecasting that lithium carbonate prices might stabilize between $20,000 and $25,000 per metric ton from 2024 to 2027.

The current decline in lithium prices can be primarily attributed to the slowing growth of electric vehicle sales in China. This is coupled with the broader slowdown in the Chinese economy. As demand remains sluggish at previous pricing levels and supply surpasses demand, prices have inevitably fallen.

Lithium prices are not expected to rebound to the euphoric levels observed in late 2022, at any time between now and the end of 2029, according to the Department of Industry and Resources. In 2023, a rush of investment in lithium production followed the high prices of 2022, driving a significant global supply surge.