Lithium is one of the key ingredients used to power the modern world. Whether it's rechargeable batteries for phones, electric vehicles or grid storage, chances are it contains some sort of lithium.
Australia is one of the world's biggest lithium producers and therefore home to a number of lithium stocks that trade on the Australian Securities Exchange (ASX).
According to a Finder survey (Dec 2023), around 15% of Australian investors hold lithium shares.
But lithium prices have come under pressure over the last 12 months due to oversupply issues. That's seen share prices of some of Australia's biggest lithium producers, such as Pilbara Minerals (ASX: PLS) and Mineral Resources (ASX: MIN), plunge as much as 60%.
But while shares of major lithium producers are deep in the red so far in 2025, there are several smaller and more diversified companies that are outperforming the market. Lithium and battery materials fell 8.91% last month. These commodities are largely seen as the crucial building blocks of the green energy transition and these downward movements showed less confidence in the short-term demand for electric vehicles. It was a bumpy ride for anyone watching the sector closely in June. Taking a step back paints a much brighter picture. The sector rose 9.19% over the past three months and climbed 16.06% for the year to date.
Lithium market roundup
These are the 5 best-performing Australian lithium stocks over the last 12 months1. We only included stocks with a market cap of over $100 million.
This data was last updated on 20 April 2026.
While most lithium stocks have struggled over the past year due to falling lithium prices and concerns around oversupply, these ASX-listed companies have bucked the trend. Their outperformance isn’t necessarily tied to lithium prices alone, in fact, that’s part of the reason they’ve done well.
Native Mineral Resources (ASX: NMR) and Andean Silver (ASX: ASL) are still in exploration stages, with diversified portfolios that include gold, copper and silver. These metals have gained investor attention as safe-haven or strategic commodities, giving the companies broader appeal beyond just lithium.
Ecograf (ASX: EGR) is focused on producing battery-grade graphite rather than lithium, which helps shield it from direct exposure to lithium market swings. Investor optimism around critical minerals for EVs and battery supply chains has helped fuel its rise.
Core Lithium (ASX: CXO), while tightly tied to the lithium market, has managed modest gains due to strong production milestones and long-term customer contracts.
Delta Lithium (ASX: DLI) has seen its share price fall in the past year, but it has still outperformed the broader lithium sector. The company’s relatively strong funding position and project advancement timelines have helped cushion the blow.
In short, these stocks are outperforming because they’re not just lithium plays. They’re diversified, early-stage or strategically aligned with broader clean energy trends.
Lithium stocks are companies in the lithium industry. There are 2 main types of lithium companies: lithium producers and companies that rely on lithium as a raw material.
Companies that produce lithium can either mine hard rock or harvest lithium-brine deposits. Mining removes lithium from a mineral using a drill, while harvesting brine deposits extracts lithium that has dissolved in groundwater through evaporation.
The brine technique takes approximately 18 months, which is slower than traditional mining.
Many companies that use lithium generally focus on lithium-ion batteries and devices. For example, electric vehicles rely on lithium as the basis for their green technology.
Many of the major car manufacturers have been announcing partnerships with lithium miners. So price fluctuations and changes in the lithium market can directly affect the stock prices of companies that use lithium as a raw material.
Another way to invest in lithium is via an exchange-traded fund (ETF) that either tracks the price of lithium or a basket of lithium-related stocks.
There is currently only one dedicated lithium ETF on the ASX - the Global X Battery Tech & Lithium ETF (ASX: ACDC), which tracks the performance of global companies involved in the mining and refinement of lithium and the production of lithium batteries. The ACDC Lithium ETF has returned -3.10% year-on-year as of June 2025.
There are also a handful of global ETFs that track some part of the lithium or battery sector but don't trade on the ASX:
In order to trade these ETFs, you'll need to have an account with a share trading platform that offers access to the US stock market.
Lithium is a key ingredient in rechargeable batteries used in phones, laptops and electric vehicles (EVs). As demand for EVs and mobile tech grows, so does the need for lithium.
While the world is already using a lot of lithium, demand is set to swell, with the lithium battery market alone growing by $92 billion by 2025. Investment in next-gen vehicles is set to exceed $500 billion by 2030.2
But lithium isn’t just used in batteries – it also strengthens metals like aluminium (used in bikes and aircraft) and is even used in medicine to treat bipolar disorder.
"The bottom line is that you have countries, governments and bodies pushing to make the world emission free by 2050, car makers are transitioning from fuel engines to EVs – with many making fuel engine cars obsolete."
Despite the strong demand outlook, the industry faces a major challenge: oversupply. Global lithium production has ramped up faster than demand, pushing down prices and forcing some producers to pause or scale back operations.
Lithium producers, particularly in China and Australia, ramped up output in expectation of surging EV demand, however growth had slowed by 2023 as interest rates globally rose and government subsidies on EVs were cut.
Lithium-ion batteries also often require cobalt. Unfortunately, two-thirds of the world’s cobalt is mined in the Democratic Republic of Congo, making its supply susceptible to political instability.
And it doesn’t help that there’s no benchmark price for lithium. Unlike oil or gold, lithium pricing isn’t standardised, and most deals are made through private contracts. That means investors are often relying on data from a few listed companies and spot market estimates, which makes it harder to gauge the true state of the global market, and increases the risk of flying blind.
You'll need a brokerage account to buy lithium stocks or ETFs. Compare options in the table below.
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Australia is one of the world’s biggest lithium producers, so buying lithium shares here gives you direct exposure to a globally in-demand resource
But timing matters. Lithium prices have plunged in the past year due to oversupply, and many local miners have seen their profits and share prices fall since the peak of 2023.
That said, long-term demand for lithium remains strong, driven by electric vehicles, renewable energy storage, and global decarbonisation efforts.<
If you’re a long-term investor who can stomach short-term volatility, Aussie lithium stocks could offer value. Just make sure to research each company’s production status, costs, and market exposure, especially in a low-price environment. Diversifying across several stocks or using ETFs may help spread your risk.
To buy lithium shares, you’ll need a brokerage account. Weigh a few trading platforms to find a brokerage firm that best fits your investing needs.
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