Lithium demand has soared, along with prices, since metal has become a critical component of global electric vehicle (EV) production. Lithium is a component of the batteries that power electric vehicles. Approximately 70% of Lithium generated globally is now used in EV batteries, according to the US Geological Survey. A report by the analytics firm Mordor Intelligence said the lithium industry was worth 280 kilotons in 2020 and is predicted to expand at a compound annual growth rate of 10% over the next five years, with Asia-Pacific consuming the majority of the metal.
Tesla, Ford Motor Company, and XPeng have all developed their lithium-ion batteries for electric vehicles. Lithium is also advancing due to EV demand. According to Fast Markets, a commodity price reporting firm, EV penetration will reach 25% by 2025 and 35% by 2030. Energy storage, 5G devices, and Internet-of-Things (IoT) infrastructure will expand during this period, requiring lithium batteries.
When investing in penny stocks, investors must look for opportunities across a variety of industries. Moreover, at the moment, there are many penny stocks in the lithium market worth monitoring. We will explore the 15 best lithium penny stocks to invest in this article.
1. Lithium Americas Corporation (NYSE: LAC)
First of all, there is Lithium Americas, a business devoted to developing lithium-related initiatives. It is advancing the Cauchari-Olaroz lithium brine project in Argentina's Jujuy province and Nevada's Thacker Pass lithium project. The company anticipates that these two facilities will be operational by 2023 and is well-positioned for expansion as the EV sector expands.
Demand for Lithium on a global scale would be a significant impetus for Lithium Americas' expansion. The company will be able to power various EV operations because of its mines in Argentina and Nevada. For example, its Nevada facility will benefit from potential synergies with Tesla's (NASDAQ: TSLA) Gigafactory in Texas and SpaceX businesses. Due to the high demand for Lithium, Lithium Americas may sign long-term deals with both of these companies. Is LAC stock worth highlighting to your portfolio of lithium stocks in light of this development?
2. Piedmont Lithium (NASDAQ: PLL)
Piedmont is a lithium exploration and development business focused on the Piedmont Lithium Project in North Carolina. It aspires to be a strategic domestic supplier of Lithium to the US's growing electric vehicle and battery storage markets. Additionally, the company is developing a world-class comprehensive lithium business to support the transition to a zero-emissions society. It will also catalyze the development of a clean energy economy in America. With its particular geographical location to resources, production operations, and potential consumers, it is well-positioned to be a long-term lithium hydroxide supplier.
The business presented an economic impact analysis for its Carolina Lithium Project on January 12, 2022. The research estimates that the direct output impact will exceed $530 million by 2027. Additionally, it anticipates a direct employment effect of 428 jobs and a total employment impact of 1,051 jobs. Piedmont Carolina Lithium will undertake the planned project as a single integrated facility consisting of three operations. This comprises quarrying, spodumene concentration, and by-product processing, among other activities. Additionally, it will feature approximately 30,000 tons of lithium hydroxide from spodumene concentrate annually.
3. Albemarle Corporation (NYSE: ALB)
Albemarle is a leading manufacturer of fine chemicals with three divisions. They are Lithium, bromine specialties, and catalysts, respectively. It fuels many of the world's largest and most vital businesses, ranging from energy to transportation and electronics. Additionally, it provides services to customers in over 90 countries.
Albemarle is now pursuing new fields of study. In particular, the company is now collaborating with 6K, a rising star in microwave-controlled plasma technology. Albemarle is investigating the usage of 6K's UniMelt technology for sustainable materials production under the terms of the present collaborative development agreement. Ideally, UniMelt might aid in developing "new lithium battery materials," as Albemarle puts it. Additionally, as Albemarle Chief Technology Officer Dr. Glen Merfeld explains, "the partnership lays a solid foundation for improved material development and future commercialization."
4. Sociedad Quimica y Minera (NYSE: SQM)
Finally, but certainly not least, is Sociedad Quimica y Minera, or SQM. In a nutshell, it is a multinational chemical corporation that concentrates on developing and producing a diverse range of goods. These include Lithium, ammonium nitrate, iodine, and thermo-salts. SQM serves the health, nutrition, renewable energy, and technology industries through its industry-leading portfolio. According to the company's forecasts, lithium sales volumes might reach over 100,000 metric tons in 2021. As the world's largest lithium producer, SQM stock may be another name to examine among lithium stocks at the moment.
To have a better idea of SQM's prospects, we could examine the company's most recent quarterly results. In November, the corporation reported a third-quarter green profit across the board. Notably, it reported massive sales growth of over 46 percent and net income growth of 6,130 percent. Not to add, earlier this month, SQM was awarded a lithium development contract by the Chilean government.
5. United States Antimony Corp. (NYSE: UAMY)
While UAMY's shares are down roughly 6% today, this is a tiny correction in the lithium market. United States Antimony Corp., on the other hand, may still be worth monitoring. It recently announced the signing of a collaboration agreement with Perpetua Resources to investigate the viability of processing antimony concentrates.
Perpetua Resources is currently pursuing permits for its Stibnite Gold Project in Idaho, which contains sizable antimony and gold resource. This alliance has the potential to increase both companies' footprints in the mining industry significantly. To provide perspective, United States Antimony is a vertical integration natural resource corporation focused on producing precious metals, zeolite, antimony, and Lithium in particular.
The company reported in February that it had completed a $14.3 million registered direct offering of common stock. The cash will be used to upgrade infrastructure at the company's antimony operations in Mexico and Montana.
Additionally, the monies will acquire accurate geological and survey data for the Los Juarez mining property. With all of these great developments in mind, it appears that UAMY may have forward potential; however, much hinges on its ability to quickly supply its mined resources.
6. Livent (NYSE: LTHM)
Livent Corp., founded in 2018 and headquartered in Philadelphia, is a specialty chemicals firm focused on producing high-performance lithium compounds. Additionally, the company manufactures high-purity lithium metal, which is utilized to manufacture lightweight materials for the aerospace sector and non-rechargeable batteries. Apart from lithium products, Livent manufactures specialized polymers and performs chemical synthesis for customers in North and Latin America, the Middle East, Asia Pacific, Europe, and Africa.
7. Noram Lithium (OTC: NRVTF)
Noram Ventures Inc. is a mineral exploration business focused on acquiring and developing mineral properties in its infancy. This company, founded in 2010, is headquartered in Vancouver, British Columbia. Its flagship venture is the 14,740-acre Zeus lithium project in Nevada's Clayton Valley, adjacent to Albemarle Corp.'s Silver Peak mine. The company's Jumbo Flake Graphite property is a 15,048-hectare property in the Arrow Lakes region of British Columbia with over 26 mineral tenures. While Noram Ventures' stock is now in our stocks under the $5 category, the company is still in the discovery and development stage. It thus might represent an attractive long-term lithium investment potential.
8. Electra Meccanica Vehicles Corp. (NASDAQ: SOLO)
Electra Meccanica Vehicles Corp. is a popular penny stock discussed several times in recent months. While it is not a pure-play lithium company, it is involved in the lithium business through its electric vehicles. The company makes and builds ecologically friendly electric vehicles (EVs) for commuter use.
This includes its SOLO EV, a purpose-built single-seat electric vehicle. It is a three-wheeled vehicle that the business claims have the potential to disrupt the EV market completely. While many EVs are geared toward speed or long-distance travel, few are designed with the short-term commuter in mind.
Additionally, the business named Kevin Pavlov, an EV pioneer, as its new Chief Operating Officer. Pavlov may add significant expertise to the company with nearly two decades of experience in the electric vehicle market.
Additionally, the firm announced the delivery of the first shipment of SOLO EVs to the United States as part of its large-scale rollout strategy. Considering all of this, the SOLO stock appears to be a fascinating play on the global EV and lithium markets. It is totally up to you whether it warrants a spot on your watchlist.
9. Aqua Metals Inc. (NASDAQ: AQMS)
AQMS is a metals recycling company that specializes in aquametallurgical refining. This unique technique refines metals with minimal environmental impact using a room temperature water solution. Aqua Metals' business operations include providing equipment, supplies, services, and licensing for their AquaRefining process. This is a significant development that can transform the way metals are recycled.
Additionally, it announced an investment of around $1.5 million in LiNiCo, a pioneer in lithium-ion battery recycling. It hopes to establish a relationship to improve its ability to recycle Lithium.
10. Global Battery Metals (OTC: REZZF)
Global Battery Metals Ltd. is based in Vancouver, British Columbia, Canada, and is engaged in acquiring, exploring, and developing mines and mineral properties. Its largest ownership is a 55% interest in Peru's Lara Socos porphyry copper-molybdenum deposit. Additionally, the business has an option to buy a 90% interest in Ireland's North West Leinster Lithium Property and an interest in western Utah's Lithium King property.
Because REZZF and NRVTF are Canadian equities, they can be purchased directly on the TSE or through a broker with access to the US OTC market as American Depository Receipts.
11. Lithium Energi Exploration (TSXV: LEXI)
Lithium Energi Exploration is a lithium exploration, development, and acquisition business focused on South America's Lithium Triangle, with over 72,000 hectares of lithium brine concessions in Argentina.
In January, the company declared that it was increasing exploration and development with its joint venture partner Global Oil Management Group. Triangle Lithium Argentina is the name of the new joint venture. On March 24, the business announced that it had begun exploration drilling in the Antofalla basin alongside its new joint venture, Triangle Lithium Argentina. This news resulted in a sharp increase in the company's share price during the following weeks, rising from C$0.21 on March 24 to a year-to-date high of C$0.35 on April 11.
12. Frontier Lithium (TSXV: FL)
Frontier Lithium's objective is to become a manufacturer of lithium salts suitable for use in electric vehicles and lithium-ion batteries. According to the business, the PAK lithium project "contains one of the highest-grade, large-tonnage hard-rock lithium resources in North America in the form of a unique low-iron spodumene." Frontier is actively developing the project, which is located on Ontario's Electric Avenue.
Frontier's 2022 news has been centered on exploring PAK's Spark deposit. It released an updated indicated resource of 14 million tonnes averaging 1.4 percent lithium oxide, and an inferred resource of 18 million tonnes averaging 1.37 percent lithium oxide, on March 1. The company recently announced the conclusion of its mineral processing pilot plant program. On April 4, the company's share price reached a year-to-date high of C$3.60.
13. Controlled Thermal Resources
Controlled Thermal Resources is a lithium resource firm. This lithium penny stock is a non-listed firm that is publicly traded. To purchase this one, you must go through an intermediary. Additionally, you can use a stock trading tool to purchase unlisted companies.
We added this one to the list as General Motors just merged with the startup. This can signify years of consistent business. Stock prices almost always rise when a company's operations are stable, and its price flow is strong.
GM made a significant financial commitment to the "Hell's Kitchen" effort in the state of California. It is the first business to invest in Hell's Kitchen and has its first dibs on lithium production. Lithium is sourced ethically and locally.
Additionally, there is the chance of a multi-year agreement with General Motors. This might be highly advantageous for CTR's stock price. The leadership team has been responsible for creating and managing renewable energy sources in the Salton Sea. Moreover, it has been doing so for at least a quarter of a century. This builds a strong basis and a successful track record with GM.
14. Global Lithium (ASX: GL1)
Global Lithium concentrates its efforts on its 100 percent-owned Marble Bar lithium project in Western Australia's North Pilbara Craton. The Archer deposit has been the key exploration focus for the project; the business is currently planning a 60,000-meter reverse-circulation drilling program for Q1 of this year. In December 2021, Global Lithium bought an 80 percent stake in the Manna lithium project from Breaker Resources (ASX: BRB). In 2022, the two businesses want to collaborate on the exploration of the project.
Global Lithium said on March 3 that it had signed a ten-year offtake agreement for spodumene concentrate with Suzhou TA&A Ultra Clean Technology (SZSE:300309), Global Lithium's largest shareholder. Suzhou TA&A also plans to assist with construction financing. The company presented its half-year financial report for the period ended December 31, 2021, in mid-March. It followed up with an exploratory update on its Marble Bar and Manna lithium projects a week later. Following the release of the financial report, the company's share price increased and reached a year-to-date high of AU$2.73 on April 4.
15. Allkem Limited (OTC: OROCF)
Allkem Limited is a low-cost lithium carbonate and boron provider based in Australia.
In August 2021, the firm joined Galaxy Resources Ltd., another Australian lithium producer. Previously known as Orocobre, Allkem changed its name lately to reflect a shift in business. Together, the two companies operate Argentina's first brine-based lithium mine.
Argentina's dry and windy climate is perfect for brine-based lithium manufacturing. This project is anticipated to operate without interruption for well over 40 years, which bodes well for the corporation.
Allkem owns Borax Argentina, a boron producer and diversifier, along with its lithium operations.
Allkem delivered a good performance in Q3 with strong revenue and profits per share results, with fourth-quarter results imminent.
The stock of Allkem Limited has performed exceptionally well through 2021 and is currently trading at all-time highs. Shares are up more than 500 percent year to date, with no end in sight.
While the electric vehicle movement is the primary driver of lithium demand, Lithium is not only used in the automobile industry. United Airlines' recent announcement to purchase 100 fully electric 19-seat short-distance planes demonstrates this.
Several industry sources have confirmed that lithium carbonate and lithium hydroxide demand is expected to rise.
Bottom Line
The majority of lithium-related stocks have struggled with revenue growth and are significantly weighted toward future development potential enabled by the green revolution. Investors should anticipate that these stocks will be more volatile.
Despite the possibility of bigger price volatility in the short term, the tailwind created by the vast and fundamental developments in renewable energy is expected to acquire even more traction. Lithium consumption will continue to grow over the next decade.
As more investors become aware of the financial advantages associated with this commodity, the market is expected to witness increased activity. As a result, lithium stocks are one of the asset classes with the greatest potential for considerable price gain in the coming years.
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