If you are searching for a new investment opportunity, you may be interested in lithium stocks. Now abundant lithium stocks might burst at any moment due to their strong demand.
Lithium-ion rechargeable batteries are becoming increasingly prevalent in electric vehicles (EVs), so it is not surprising that many people are eager to invest. It is unquestionably a viable choice, and its demand will continue to rise.
Every day, lithium’s numerous applications are put to the test, and we’re not just talking about rechargeable batteries. Lithium is also utilized in medicine (for the treatment of certain diseases) in the manufacture of glass and ceramics. It would help if you considered lithium stocks as one of your following significant investments. Include the following lithium penny stocks in your portfolio.
10 Best Cheap Lithium Stocks to Buy in 2022
1. United States Antimony Corp. (NYSE: UAMY)
While UAMY shares are down almost 6 percent today, this is a modest correction in the lithium market. United States Antimony Corp. might still be worth keeping an eye on. It only announced a partnership arrangement with Perpetua Resources a week ago to investigate the viability of antimony concentrates processing.
Perpetua Resources is now working on obtaining permits for a massive antimony and gold potential in Idaho at its Stibnite Gold Project. This cooperation should significantly boost both corporations’ presence in the mining industry. United States Antimony is a natural resource corporation producing precious metals, zeolite, antimony, and lithium.
In February, the firm stated that it had completed a registered direct offering of common shares for $14.3 million. The intention is to use this money to develop infrastructure at its antimony operations in Mexico and Montana.
In addition, the monies will be used to collect geological and survey information from the Los Juarez mining area. With all of these remarkable developments, UAMY appears to have future potential. However, whether or not it can provide its mined materials in a timely way is critical.
2. Sigma Lithium (NASDAQ: SGML)
Sigma Lithium’s Grota does the Cirilo hard-rock lithium project in Minas Gerais, Brazil, and has been producing lithium at a pilot-scale since 2018. Sigma anticipates an annual Phase I output of 220,000 MT.
The company’s mission is to become “one of the world’s major manufacturers of high-purity, ecologically sustainable lithium products at the lowest cost.” The construction of Sigma’s Greentech dense media separation manufacturing facility will make the company’s activities vertically integrated. The Bank of America (NYSE: BAC) recently designated it as one of the “Top 50 Stocks for 10 Scarcity Themes.” The company highlighted its environmental, social, and government initiatives at the end of March, including donating 7,000 food baskets to the region in which it works.
Sigma then released its yearly results for 2021 alongside an update on the on-time development of its Phase 1 manufacturing facility. The firm has recently updated its feasibility assessment to include a potential increase in production capacity to 450,000 MT per year. On April 7, it hit a year-to-date high of C$22.18, and on May 4, it hit a new 2022 high of C$22.21, despite the lack of exploration-related news. Despite a drop in its share price since January, the cost of Sigma has continued to rise.
3. Livent (NYSE: LTHM)
Livent is a global manufacturer of lithium with operations in North America, South America, Europe, and Asia. The firm manufactures lithium-based products for applications including energy storage and battery systems, as well as plastics, aerospace, and the pharmaceutical industry.
Livent’s performance has been unpredictable this year, with several peaks and dips. Since its 2022 starting price of US$25.42 was not exceeded until April, when many lithium companies saw significant returns owing to high lithium prices, it has spent most of the year below its current price. Livent’s doubling of its ownership in Nemaska Lithium, bringing it to 50 percent, and its Q1 results ignited a surge from US$21.37 on May 2 to a year-to-date high of US$28.55 on May 4; this was a gain of roughly 15.5 percent. The company’s shares dropped close to the US$20 mark in late April. The company’s sales increased by 17 percent quarter-over-quarter and 56 percent year-over-year in Q1.
4. Aqua Metals Inc. (NASDAQ: AQMS)
AQMS is a recycling firm for metals that specializes in hydrometallurgical AquaRefining. This unique process utilizes a water solution at ambient temperature to purify metals with minimal environmental effect. Aqua Metals provides worldwide equipment, supplies, services, and licenses for its AquaRefining technology as part of its commercial activities. This is significant and might change the recycling of metals.
At the end of last month, AQMS released its financial results for the first quarter of 2021 and other company updates. AQMS announced that it had received the initial insurance reimbursement for its $1.4 million business interruption claim, putting the total collected insurance at $25 million.
Additionally, it announced an investment of around $1.5 million in LiNiCo, an innovation in lithium-ion battery recycling. It intends to develop a partnership to improve its ability to recycle lithium.
5. Electrameccanica Vehicles Corp. (NASDAQ: SOLO)
We’ve covered Electrameccanica Vehicles Corp. multiple times in the past few months as a penny stock. Although it is not a pure-play lithium stock, its electric cars place it in the lithium business. The firm makes and builds computer-oriented, ecologically friendly EVs.
This includes its single-seat, purpose-built EV, the SOLO. The business claims that its three-wheeled vehicle might radically transform the EV industry. While many EVs are designed for speed or long-distance travel, few are constructed with the short-term commuter in mind.
In addition, the business just recruited EV pioneer Kevin Pavlov as its new Chief Operating Officer. With over 20 years of experience in the EV business, Pavlov may contribute a wealth of knowledge to the organization.
Henry Reisner, executive vice president of Electrameccanica, commented, “Kevin’s determination and expertise will be crucial in scaling up SOLO mass production and creating our U.S. assembly plant. I am excited to collaborate with Kevin and the team to move Electrameccanica to the next level, allowing me to focus on the e-Roadster vehicle line.
In its March announcement of fourth-quarter and full-year 2020 results, the business claimed that it strives to make its new plant fully operational. The factory could produce 20,000 SOLOs each year when it is completed.
In addition, the business reported delivering the first shipment of SOLO EVs to the U.S. as part of its extensive deployment plan. In light of this information, the SOLO stock appears to be a fascinating investment for the global EV and lithium markets. Whether or whether it belongs on your watchlist is entirely up to you.
6. Controlled Thermal Resources
The renewable energy firm Controlled Thermal Resources delivers lithium resources.
This company publicly-traded firm not listed on a major exchange. If you wish to purchase this item, you must go via an intermediary. Additionally, you can utilize a stock trading tool that enables the purchase of unlisted firms.
This firm was added to the list because GM had just formed a partnership with them. This might result in years of dependable corporate growth, and a reliable company and an increase in cash flow typically result in a stock price increase.
The nature of the partnership is as follows:
- GM invested millions of dollars in the company’s “Hell’s Kitchen” initiative in California. It is the first business to invest in Hell’s Kitchen and has its first dibs on produced lithium. The lithium is supplied domestically and responsibly.
- Additionally, there is the possibility of a multi-year relationship with GM. All of these might be highly beneficial for CTR’s stock price.
- The leadership group has been creating and managing renewable energy projects at the Salton Sea. This has been the case for at least 25 years, providing a firm basis and a proven track record for success with GM.
7. Ultralife Corporation (NASDAQ: ULBI)
Ultralife Corporation designs, manufacture, installs and maintains power, communication, and electronic systems globally with its subsidiaries. The firm serves the government, the military, and the private sector.
The business is divided into two divisions: Battery & Energy Products and Communications Systems.
The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium-ion cells, multi-kilowatt module lithium-ion battery systems, and uninterruptible power supplies; as well as rugged military and commercial battery charging systems and accessories, such as intelligent chargers, multi-bay charging systems, and various cables.
The Communications Systems segment offers communications systems and accessories to support military communications systems, including radio frequency amplifiers, power supplies, cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications. Such as vehicle adapters, power enhanced rifleman appliqué systems, and SATCOM systems. The military communications systems and accessories in this market are intended to improve and expand the functionality of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers.
SWE SEA SAFE and SWE DRILL-DATA are two of the brands under which it markets its goods. It also distributes its products through original equipment manufacturers, industrial and defense supply wholesalers, and directly to the United States and worldwide defense agencies.
In addition, the firm offers its 9-volt batteries to a larger consumer market via national and regional retail chains and online merchants.
8. Global Battery Metals
The primary emphasis of Global Battery Metals is a mineral exploration, and it focuses on metals that contribute to the “rapid growth of battery power.” The company mines in Arizona, Ireland, and Peru. Gold and copper are also on its search list and are actively sought.
In February of 2021, the price of stocks rose dramatically. It increased to ninety cents, then decreased to around twenty-five cents. Now is a perfect moment to purchase. It seems that there are two possible outcomes.
As a lithium penny stock, Global Battery Metals may increase presently. The current increase has apparently lifted the stock from its all-time lows.
It may decline now and then rise dramatically in the future. It appears to be experiencing a short-term decline; however, the recent significant increase bodes well for the future.
Currently, global is at a low price. But it will likely accelerate as more and more electric vehicles are used. We are optimistic regarding Global Battery Metals. Now may be a good time to buy because the price is low but still above its 2019 low.
9. Westwater Resources, Inc. (NYSE: WWR)
Westwater Resources, Inc. works as a diversified developer of energy materials. It primarily searches for lithium, graphite, uranium, and vanadium reserves.
The principal project of the firm is the Coosa graphite project comprising roughly 41,965 acres in east-central Alabama.
It also maintains a stake in lithium projects, including the Columbus Basin project, which spans approximately 14,200 acres and consists of two blocks of unpatented placer claims in western Nevada, and the Sal Rica Project, which covers about 13,260 acres in northern Utah.
In addition, the corporation has stakes in other uranium projects, including 188,700 acres in the west-central region of New Mexico and Texas.
In August of 2017, the firm formerly known as Uranium Resources, Inc. changed its name to Westwater Resources, Inc. Westwater Resources, Inc. was established in 1977 in Centennial, Colorado.
10. Frontier Lithium (TSXV: FL)
Frontier Lithium aspires to become a supplier of lithium salts for the electric car and lithium-ion battery sectors. The firm claims that its PAK lithium project offers one of North America’s highest-grade, large-tonnage hard-rock lithium deposits in the form of rare low-iron spodumene. The project, which Frontier is presently constructing, is located on Electric Avenue in Ontario.
As of March 1, Frontier reported an updated indicated resource of 14 million metric tons (MT) averaging 1.4 percent lithium oxide, and an inferred resource of 18 million MT, an average of 1.37 percent lithium oxide at PAK’s Spark deposit. Later that month, the company concluded a prototype plant campaign for mineral processing. Since then, Frontier has hired Tony Zheng as its chief financial officer.
Frontier recently announced its exploration intentions for 2022, which would continue to focus on the Spark deposit. On May 4, the firm’s share price reached a yearly high of C$3.84 two days later.
Is Lithium an Attractive Investment in 2022?
If you actively watch the stock market, you must have observed the periodic shifts that occur. Prices increase and fall naturally, reflecting nothing more than a momentary shift in demand. However, lithium stocks still have the potential to skyrocket this or next year, making them an excellent investment opportunity. You should investigate the top stock investment applications if you are a novice.
From the outside, lithium stocks may appear to be declining and a terrible investment, but that would be presuming they will not rise in the future. Before the glut, lithium stocks were significantly greater in 2021 than at the start of 2022. Now may be one of the most delicate times to invest because prices are so low.
Being advised to invest during a current decline in lithium stock price might be scary if you are unaware of the cause of the fall—a sudden glut of lithium materials brought on the decline in the value of lithium stocks. The current decrease in demand is not attributable to a lack of demand but rather to the market’s plenty of supply.
Lithium is a costly element to acquire, and its price will continue to climb as more EVs are introduced to the market. It is investigating the leading lithium stocks before this spike might result in enormous rewards.
What Kind of Global Impact Does Lithium Have?
Indeed, anything so excellent must have some drawbacks, right? What are the actual disadvantages of using lithium batteries on a large scale? Is it moral to invest in something that causes harm? These are essential questions to ask before investing since you do not want your money to go to a poor cause.
A lithium battery is a far more effective and costly battery type. These batteries offer a high charge density and a longer lifespan, making recharging a far more realistic choice. They are prevalent in smartphones, tablets, and electric vehicles.
As with most batteries, lithium batteries eventually end their useful life. There are still ways to recycle these batteries for future use, even though removing the battery’s components is difficult once its life has expired. However, the procedure of recycling is rather costly. It is more expensive than mining the ingredients to produce new batteries, so it is inefficient.
It is up to you to determine whether or not you want to invest in lithium mining stocks, even though a considerable amount of money is to be made from them.
How to Buy Lithium Penny Stocks
If this is unfamiliar ground for you, but you do not wish to miss out on the market’s potential, you should try to stay up. Lithium is a versatile material utilized in many applications for which there will always be a need.
Participating in stock trading might be somewhat intimidating. Those who have never invested before may feel like they are throwing their money away, mainly if they did not conduct adequate research before investing. You must be prepared and well-informed to invest in the top lithium battery stocks before their prices climb.
Choosing an Investment Platform
Without prior expertise, the concept of selecting a platform may seem daunting. You should be aware that each forum has its benefits and that particular stocks may not be accessible on some media.
Some may prohibit Chinese lithium stock trading, while others may not offer the leading lithium mining stocks you want. In addition, some platforms have more significant fees, while others have fewer limits on how you may trade. Examine the benefits of each forum, determine the type of trading you wish to engage in, and go from there.
Searching for Stocks
To locate the most significant stocks within your price range, you must investigate why their prices are what they are. Learn why Canadian lithium stocks are preferable to Chinese lithium stocks. What distinguishes lithium supplier stocks from lithium mining stocks?
If you want to see significant returns, you must comprehend your investments. For instance, if the price has decreased owing to a temporary overstock scenario, it will eventually increase.
Employ Your Method
Everyone has a favored method of trading. Sometimes it’s great to be patient, while it’s preferable to purchase low and sell high. You can’t always know how the market will transform, so if you’ve profited enough from your investment, selling immediately may be your best option.
For those who feel the market will continue to expand, patience may be the best option. Consider the crypto market: Bitcoin saw several rises and falls before reaching its current state. Those who were patient and stuck onto their Bitcoin investments over the long-term amassed riches, but there is no assurance.
Keeping a Sharp Watch
If you intend to sell your shares as soon as you are satisfied with their value or respond to a market decline, you will need to check the market often. Tracking your assets using appropriate stock portfolio tracking applications is also essential. The longer you go without searching, the greater your potential loss.
Will the Price of Lithium Rise?
Due to the numerous applications of lithium, its price is anticipated to increase. In addition, there is a global deficit in the metal’s supply. Consequently, not only will demand increase, but its scarcity will also boost its value.
If you want to maximize your investing capital, you should investigate lithium stocks that have the potential to explode. Once demand catches up with the existing lithium supply, the prices are expected to increase.
Is Now Too Late to Invest in Lithium Stocks?
Since the increase in electric vehicles is occurring gradually, investing in lithium is not yet a poor decision. There is still plenty of time to become involved in this industry before things take off.
Who Owns the Majority of Lithium?
Australia, Chile, and China contain the most significant amounts of lithium. Consider investing in a mining firm in one of these locations if you seek a long-term investment.
Who is Tesla’s Lithium Supplier?
Until the end of 2021, Tesla collaborated with Livent Corporation. Until the end of 2024, Tesla has a deal with Ganfeng Lithium.
What Will Substitute Lithium?
Lithium is now the most excellent material on the market for battery construction. However, this will not endure forever. Although it may be worthwhile to invest in today, better batteries are currently being researched and will be available in the future. This may be light-years away.
Sodium-ion batteries are expected to replace lithium-ion batteries shortly. They are reportedly seven times more efficient than standard batteries. In addition, they are manufactured using readily available and inexpensive materials.
Lithium stocks are an attractive investment opportunity for those seeking significant profits. EVs are here to stay, and the need for lithium among businesses continues to rise. In addition, the present glut that has caused a decline in the value of lithium stocks will soon subside. Therefore, it is a worthwhile purchase if you are not frightened of taking chances.