Best ASX Lithium stocks 2022 has been called “the new gasoline” or “the new petroleum” for good reason. Battery consumption and production are growing at an alarming rate, and this could have a dramatic impact on how we power our world over the next few decades.
Investors tend to focus on the largest names in electric cars, such as Tesla Motors (NASDAQ TSLA) or Panasonic.
Let’s discuss the 5 Best ASX Lithium Stocks Australia To Buy In 2022.
5 Best ASX lithium stocks 2022 | Stocks of lithium that could explode in 2022 and 2023
Although lithium stocks fluctuate in price every day, this is a long-term investment. I have listed 5 Australian lithium stocks ASX that are worth investing in 2022.
1. Lake Resources Ltd (ASX : LKE).
This is our top pick for 2022. When it becomes the next major lithium producer after Altura Mining, Pilbara Minerals and Galaxy Resources, its potential for appreciation is quite high. LKE has recently signed an offtake agreement (ETR: LXS) with German specialty chemicals company LANXESS AG (ETR. LXS). This is a sign that the market is beginning to take LKE seriously. LKE is a lithium company which has been in existence since 2005 but was not well-known until early 2018. Management was forced to sell its assets in 2012 when it became clear that the brine extraction technology they were using wasn’t going anywhere soon.
LKE raised $8 million AU in 2017 and purchased back its original brine assets. OTOCORB’s Brine Extraction is exactly what it did. It now has a market capital of AU$1.24b and is one of Australia’s biggest lithium producers. LKE bought another brine asset in WA near Greenbushes for $6m AU in 2018. They have entered into a binding offtake agreement (ETR: LXS) with a division LANXESS AG (ETR : LXS), a German specialty chemical company. LKE is a producer of mid-tier with 18,000 tonnes LCE per annum starting in 2020.
LKE is not getting enough attention in the market, according to our view. It is a company that has many near-term catalysts and therefore massively undervalued. LKE is a great investment for lithium in 2022, according to our opinion.
2. Core Lithium (ASX : CXO)
CXO is a great investment option for potential returns. This is because the company’s financial performance shows that it has been growing year after year. If you invest now, there is a high chance that your investment will grow over the years.
CXO shares are $1.35AUD at the time of writing, which is an extraordinary growth rate in this company’s stock. It continues to grow and is expected to make huge returns in 2022 due its large projects. CXO will allow investors to not only reap decent returns right now but in the long-term as well.
3. Lithium Australia (ASX : LIT).
LIT, a lithium stock, looks very promising for investors. It recently acquired two projects in Australia and Canada that could double its total output. The company was founded in 2005, when LIT was called ADX. It changed its name to Lithium Australia NL in 2010 and began exploring lithium in Canada with Dr James Nelson, University of British Columbia. LIT began looking for opportunities in Australia and acquired Jervois Mining Ltd. This is a focus on the hardrock sector with one asset.
The company has a market capitalisation in excess of $1 billion. LIT’s fortunes are changed in 2013 when it acquired the PLS project of Galaxy Resources Ltd., majority-owned by Clive Palmer, a mining magnate. The project includes a significant portion of the country’s lithium resources as well as about half the world’s spodumene reserves.
LIT continued its progress in 2014 when it purchased Mineral Deposits Limited’s flagship project, located in Lake Taldy (Queensland). This project is a hard-rock lithium deposit that contains one of the most high-grade hard rock lithium deposits in Australia and North America.
The project is at an advanced stage and has the potential for a production of 40,000mt. The project could be developed in stages. The first stage is expected to start in 2020. LIT also recently acquired Lithium Power International Limited (Lithium Power), and e-Cobalt Solutions Inc.
4. Arizona lithium (ASX : AZL).
Arizona lithium (ASX.AZL), our new pick for the top lithium share to purchase in 2022, is now available. This company has had a great run over the last few months with a 52-week high of $0.20 followed by a 52-week low of $0.04. They are a trusted company that was founded in 1969. Morningstar Quantitative estimates that this share is worth $0.21 at the current valuation. However, some forecasts suggest it could easily reach $1AUD.
We predict that AZL will be worth $ 0.38 AUD by 2022. Current AZL share prices are $0.16AUD
5. Global Lithium (ASX : GL1)
GL1 is another exploration company. Currently, the company is focused on Marble Bar lithium project. It is located in North Pilbara Craton, Western Australia. Manna lithium project, which Breaker Resources also owns 80% of GL1, is another project. The project was started by both companies in 2022. GL1 also signed a 10-year deal for spodumene concentrate from Suzhou TA&A Ultra Clean Technology on March 3, 2022.
The current GL1 share price of $1.75 AUD is compared to a 52-week high of $2.79AUD and low of 0.24AUD. Morningstar estimates that GL1 has a fair value of $2.84 AUD. You can now see if this is a worthwhile investment.
Will lithium stocks rise?
There are many reasons why lithium stocks will rise. These include increasing demand for lithium and the increasing demand for electric cars. Lithium will be used to make batteries. Lithium is also in high demand in the medical sector. This demand is constant and will continue to drive demand for lithium.
What should I do if I want to invest in lithium stocks
Yes, lithium stocks and ETFs that invest in lithium are a great way to diversify your portfolio.
According to major analyses, lithium demand is on the rise. In 2030, it will reach 2 million tonnes.
You know that lithium is being used in batteries, and the demand for electric cars is growing. This means that lithium demand will increase.
To see huge gains in 2022, keep an eye out for the below-listed lithium shares.
List of Australian lithium mining companies
ASX: Small Cap Lithium Stocks
- METALS AUSTRALIA – (ASX:MLS)
- SHREE MINERALS (ASX:SHH)
- TAMBOURAH METALS (ASX:TMB)
- BRYAH RESOURCES (ASX:BYH)
The stocks mentioned above are related to lithium exploration and mining. This is why we ranked them as the Best Australian lithium shares under 15 million. These stocks should be kept under the radar.
FAQ
You should definitely buy Australian lithium stocks. This is because Australian lithium is highly sought after due to its high quality. The production rate of Australian lithium mining companies is high. They can mine and sell lithium quickly in the market, and they can make money fast. So, there are better chances that Australian lithium shares will give you higher returns than other lithium stocks.
What lithium stock should I buy ASX?
These are the top lithium stocks you can buy on ASX:
- Lake Resources Ltd (ASX : LKE).
- Core Lithium (ASX : CXO
- Lithium Australia (ASX : LIT).
- Arizona lithium (ASX : AZL).
- Global Lithium (ASX GL1)
Why is lithium stock going up?
The main reason lithium share prices have risen is the increasing market demand for lithium. This is because Electric Vehicles demand is growing and lithium is the main source of power for EV batteries.
How do I buy lithium stocks?
There are several ways to purchase lithium stocks. You can either invest directly in exploration companies or mining companies, or you can buy ETFs that are composed of certain lithium companies. If you’re looking to buy lithium stocks in Australia, Commsec offers the best platform.
Conclusion
These are the top ASX lithium stocks you can invest in now in 2022. They have shown great potential for growth, both now and in the future. You will find that your money is growing faster than you think if you pick one of these options today.
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