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.
The good news for local investors is that Australia is one of the world's biggest lithium producers and home to several ASX lithium stocks. As such, Australian investors are well placed to cash in on the latest hot stock. However, like any trend, there will be major winners and losers along the way.
5 best performing lithium stocks on the ASX (over the last 12 months)
Latin Resources Ltd (LRS)
Leo Lithium Ltd (LLL)
Delta Lithium Ltd (DLI)
Liontown Resources Ltd (LTR)
Pilbara Minerals (PLS)
Read on to find out what you need to know about lithium shares.
ASX Lithium stocks
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.
Company summary
Mineral Resources Limited, together with subsidiaries, operates as a mining services company in Australia, Asia, and internationally. It operates through five segments: Mining Services, Iron Ore, Lithium, Energy, and Other Commodities. The company offers contract crushing, screening, and processing; specialized mine services, including materials handling, plant and equipment hire and maintenance, tails recovery, and aggregate crushing; and design, engineering, and construction services for resources sector. It also manages the processing, production, logistics, ship loading, marketing, and export of commodities on behalf of tenement owners; and provides specialist parts to the mining, quarrying, and recycling industries. In addition, the company has a portfolio of iron ore assets; and holds interests in the Mount Marion and Wodgina lithium projects located in Western Australia. Mineral Resources Limited was founded in 1993 and is based in Osborne Park, Australia.
Pilbara Minerals Limited engages in the exploration, development, and operation of mineral resources in Australia. The company primarily explores for lithium. It primarily holds a 100% interest in the Pilgangoora lithium-tantalum project located in the Pilbara region of Western Australia. The company was incorporated in 2005 and is based in West Perth, Australia.
Allkem Limited engages in the exploration, development, and production of lithium and boron in Argentina. The company's flagship project is the Olaroz Lithium Facility located in Jujuy province in northern Argentina. Allkem Limited was incorporated in 2005 and is based in Brisbane, Australia.
Historical performance
Stock information
Market capitalization: $5852489216
PEG ratio: -2.7
Dividend yield: 0%
Company summary
Galaxy Resources Limited engages in the production of lithium concentrate and exploration of minerals in Australia, Canada, and Argentina. Its flagship project is the Sal de Vida project located in Catamarca province, Argentina. The company was incorporated in 1996 and is headquartered in Perth, Australia. As of August 16, 2021, Galaxy Resources Limited operates as a subsidiary of Orocobre Limited.
Historical performance
Stock information
Market capitalization: $2669937664
P/E ratio: 32.1951
PEG ratio: 0
Dividend yield: 0%
Company summary
Piedmont Lithium Inc., a development stage company, engages in the exploration and development of resource projects in the United States. The company primarily holds a 100% interest in the Carolina Lithium Project that include an area of approximately 3,706 acres located within the Carolina Tin-Spodumene Belt situated to the northwest of Charlotte, North Carolina in the United States. It also owns a real property of approximately 5 acres in Bessemer City, North Carolina; and 61-acre property in Kings Mountain, North Carolina. The company was founded in 2016 and is headquartered in Belmont, North Carolina.
Historical performance
Company summary
Latin Resources Limited explores and develops mining projects in Australia, Peru, Argentina, and Brazil. The company primarily explores for lithium, copper, and gold deposits. Its flagship project is the Salinas Lithium project, which consists of approximately 38,000 hectares located in the district of Minas Gerais, Brazil. The company was incorporated in 2008 and is headquartered in West Leederville, Australia.
Historical performance
Stock information
Market capitalization: $434530080
PEG ratio: 0
Company summary
Leo Lithium Limited engages in the exploration for lithium minerals in Mali. Its flagship project is the Goulamina lithium project that covers an area of 101 square kilometres land located in the Bougouni Region of southern Mali. The company was incorporated in 2020 and is based in West Perth, Australia.
Historical performance
Company summary
Delta Lithium Limited explores for and develops lithium properties in Western Australia. Its flagship project includes the Mt Ida lithium project that comprises of 30 tenements located to the north-west of Menzies in Western Australia. The company was formerly known as Red Dirt Metals Limited and changed its name to Delta Lithium Limited in April 2023. Delta Lithium Limited was incorporated in 2003 and is based in Subiaco, Australia.
Historical performance
Company summary
Liontown Resources Limited engages in the exploration, evaluation, and development of mineral properties in Australia. The company explores for lithium, gold, vanadium, copper, and nickel deposits, as well as platinum group elements. Its flagship property is the Kathleen Valley lithium project located in Perth, Western Australia. The company was incorporated in 2006 and is headquartered in West Perth, Australia.
Historical performance
Stock information
Market capitalization: $2437124864
PEG ratio: 0
Company summary
De Grey Mining Limited engages in the exploration of mineral properties in Australia. It primarily holds a 100% interest in the Mallina Gold project covering an area of approximately 1,500 square kilometers located in the Pilbara region of Western Australia. De Grey Mining Limited was incorporated in 2000 and is based in West Perth, Australia.
Allkem Limited engages in the production and sale of lithium and boron in Argentina. Its flagship project is the Olaroz Lithium Facility located in Jujuy province in northern Argentina. Allkem Limited was incorporated in 2005 and is headquartered in Brisbane, Australia. As of January 4, 2024, Allkem Limited operates as a subsidiary of Arcadium Lithium plc .
Historical performance
Stock information
Market capitalization: $6304352256
P/E ratio: 9.5437
Dividend yield: 0%
Company summary
Anson Resources Limited engages in the acquisition, exploration, and development of mineral resources in the United States and Western Australia. The company offers lithium, bromine, caustic soda, boron, and iodine; and zinc, lead, silver, graphite, nickel-cobalt laterite, vanadium, and uranium deposits. Its flagship property is the Paradox Basin Brine project, which covers an area of 167 square kilometers located in the Utah, the United States of America. The company also holds an interest in the base metal projects comprising The Bull project, which covers an area of 82 square kilometers; Ajana Springs project that covers an area of 222 square kilometers; and Hooley Well project, which covers an area of 154 square kilometers located in Yilgarn Craton, Western Australia. In addition, it holds an interest in the Yellow Cat project located in Thompson District, Utah. The company was formerly known as Mayan Iron Corporation Limited and changed its name to Anson Resources Limited in January 2016. The company was incorporated in 2009 and is headquartered in Brisbane, Australia.
Historical performance
Company summary
European Metals Holdings Limited engages in the exploration and development of Cinovec lithium and tin resources projects in the Czech Republic. The company was formerly known as Equamineral Holdings Limited and changed its name to European Metals Holdings Limited in February 2014. European Metals Holdings Limited was incorporated in 2012 and is based in West Perth, Australia.
Historical performance
Company summary
Korab Resources Limited engages in the exploration and evaluation of mineral properties. The company explores for gold, silver, phosphate rock, magnesium, manganese, tin, iron ore, copper, nickel, cobalt, lead, zinc, lithium, and rare earth metals, as well as scandium, palladium, platinum, and base metals. Korab Resources Limited was incorporated in 1998 and is based in West Perth, Australia.
Historical performance
Stock information
Market capitalization: $2569350
PEG ratio: 0
Company summary
Piedmont Lithium Inc., a development stage company, engages in the exploration and development of resource projects in the United States. The company primarily holds a 100% interest in the Carolina Lithium Project that include an area of approximately 3,706 acres located within the Carolina Tin-Spodumene Belt situated to the northwest of Charlotte, North Carolina in the United States. It also owns a real property of approximately 5 acres in Bessemer City, North Carolina; and 61-acre property in Kings Mountain, North Carolina. The company was founded in 2016 and is headquartered in Belmont, North Carolina.
Historical performance
Company summary
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting. The Copper segment engages in mining and refining of copper, gold, silver, molybdenum, and other by-products and exploration activities. The Minerals segment is involved in mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets; diamond mining, sorting, and marketing; and development projects for battery materials, such as lithium. It also owns and operates open pit and underground mines; and refineries, smelters, processing plants and power, and shipping facilities. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.
Traka Resources Limited engages in the exploration of mineral properties. It explores for gold, copper, and rare earth elements. The company primarily holds 100% interest in the Gorge Creek project located in Queensland. It also has interests in the Musgraves and the Mt Cattlin Gold projects in Western Australia. The company was incorporated in 2003 and is based in West Perth, Australia.
Historical performance
Stock information
Market capitalization: $1750660
PEG ratio: 0
Company summary
Global Lithium Resources Limited engages in the evaluation, exploration, and development of lithium resources in Australia. The company holds 100% interest in the Marble Bar Lithium project located in the Pilbara, Western Australia. It also holds 100% interest in the exploration and future mining rights to lithium and lithium associated co-mineral rights in the Manna Lithium project located in the Goldfields, Western Australia. Global Lithium Resources Limited was incorporated in 2018 and is headquartered in Perth, Australia.
Historical performance
Company summary
Lanthanein Resources Limited, together with its subsidiaries, engages in the exploration and evaluation of mineral projects in Australia and Papua New Guinea. It explores for neodymium, praseodymium, lithium, gold, silver, and other base metals, as well as white kaolin clay and alumina feedstock. The company holds interest in the Gascoyne Rare Earth Elements project, located in the Gascoyne Region of Western Australia; and the Murraydium REE project, that covers an area of 872 square kilometers and located in the south-eastern region of South Australia. It also holds interest in the Koolya Project, that covers an area of 240 square kilometers and located near east of Perth, Western Australia; the Mt Clere REE and lithium project, that covers approximately an area of 350 square kilometers and located in the eastern Gascoyne Province; and the Tolukuma gold mining tenement located near north of the national Capital of Port Moresby, Papua New Guinea. The company was formerly known as Frontier Resources Limited and changed its name Lanthanein Resources Limited in May 2022. Lanthanein Resources Limited was incorporated in 2001 and is based in Perth, Australia.
Historical performance
Stock information
Market capitalization: $9774561
P/E ratio: 0
PEG ratio: 0
Company summary
Benz Mining Corp. engages in the acquisition, exploration, and exploitation of mineral properties in the Americas. The company holds interests in the Eastmain Gold project that comprises 155 contiguous mining claims covering an area of 8,172.71 hectares located to the northeast of Montreal; and the Windy Mountain property, which consists of 78 claims covering an area of 4,109.7 hectares. It also has an option to acquire a 100% interest in the Ruby Hill West and Ruby Hill East projects which consists of 545 claims covering an area of 28,731.9 hectares located west of the Eastmain gold project. The company was formerly known as Benz Capital Corp. and changed its name to Benz Mining Corp. in January 2015. The company was incorporated in 2011 and is headquartered in Vancouver, Canada. Benz Mining Corp. operates as a subsidiary of Chess Depositary Nominees Pty Ltd.
Historical performance
Company summary
Venus Metals Corporation Limited engages in the exploration of mineral tenements in Western Australia. It primarily explores for lithium, nickel, copper, gold, base metals, vanadium, rare earths, and platinum-group elements. The company was incorporated in 2006 and is based in Subiaco, Australia.
Historical performance
Stock information
Market capitalization: $15368048
P/E ratio: 0.5063
PEG ratio: 0
Company summary
Essential Metals Limited explores for and develops mineral properties in Australia. The company explores for gold, nickel, and other precious metals. Its flagship project is the 100% owned Pioneer Dome lithium project covering an area of 450 square kilometers in Western Australia. The company was formerly known as Pioneer Resources Limited. Essential Metals Limited was incorporated in 2003 and is based in West Perth, Australia.
Historical performance
Company summary
European Lithium Limited explores for and develops lithium deposits in Austria and Australia. The company focuses on the development of the Wolfsberg lithium project that consists of various original and overlapping exploration licenses, and a mining license covering various mining areas located in Carinthia. European Lithium Limited is headquartered in West Leederville, Australia.
Historical performance
Company summary
Lake Resources NL explores for and develops lithium brine projects in Argentina, Australia, and the United States. The company's flagship project is the Kachi lithium brine project located in Catamarca province, Argentina. It also explores for minerals. Lake Resources NL was incorporated in 1997 and is based in Sydney, Australia.
Core Lithium Ltd engages in the development of lithium and various metal deposits in Northern Territory and South Australia. The company primarily explores for copper, gold, silver, uranium, lead, zinc, rare earth elements, and base metals. Its flagship project is the Finniss Lithium project located to the south of Darwin port in the Northern Territory; and Shoobridge Lithium, Anningie and Barrow Creek Lithium, Blueys and Inkheart Lead/Silver, the Bynoe Gold, and Napperby uranium projects located in the Northern Territory. It also holds an 100% interest in the Yerelina Zinc project that covering a totaling area of 500 square kilometers in northern South Australia; Jervois Domain project, which covers three exploration licenses located in the central Northern Territory; and Fitton project located in South Australia. Core Lithium Ltd was incorporated in 2010 and is based in Perth, Australia.
Historical performance
Stock information
Market capitalization: $224378704
PEG ratio: 0
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.
Finder survey: Which industries do Australians hold stocks in?
Response
Lithium
14.97%
Source: Finder survey by Pure Profile of 1145 Australians, December 2023
Lithium ETFs (ASX)
If you like the trend but are not sure how to get started, taking a basket approach might be a sound strategy.
Some exchange traded funds (ETFs) follow the full lithium cycle from mining through battery production, while others specialise in the battery industry. To date, there is only 1 ASX-listed pure-play lithium ETF:
If you're looking to follow the next investment trend, then lithium could be right up your alley. Lithium is set to become one of the major commodities needed for the modern world.
While lithium has been traditionally used in ceramic and glass production, it’s now more popularly used in rechargeable batteries for smartphones, laptops and electric cars.
Lithium also strengthens other metals. For example, lithium alloys, such as aluminium-lithium, are used in bicycle frames and aircraft. In the pharmaceutical industry, lithium is used to balance neurotransmitters in the brain to treat bipolar disorder.
The world is progressively more technology-driven, which increases our need for materials such as lithium.
Rechargeable lithium-ion (Li-ion) batteries have multiple applications – from consumer smartphones and laptops to military voice and data radios. Lithium plays an essential role across mobile technologies, with the demand for lithium-ion batteries poised to triple by 2025, according to an analysis by S&P Global.
A lot of this growth will come off the back of electric vehicles (EVs). The Australian Department of Industry, Science, Energy and Resources forecasts EV sales to grow from around 5 million units in 2021 to 30 million by 2030. Deloitte agrees, stating EV sales are set to reach 11.2 million in 2025 and then 31.1 million by 2030, which is 32% of the total market share.
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.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Risks of investing in ASX lithium stocks
Although the demand for lithium is soaring, lithium stocks have been drowning in a surge of new lithium producers from Chile, Argentina and Australia. When supply grows faster than demand, it can trigger a sharp price drop and cause stocks to become undervalued.
Lithium-ion batteries also 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 since global cobalt mine supplies are also at risk of disappearing, there may not be enough cobalt to manufacture these batteries.
And it doesn’t help that there’s no benchmark price for lithium. So investors in Australia can only base the value of the industry on a handful of companies. You’re flying blind without a full sense of the global market, leaving investors and banks struggling to manage risk.
Bottom line
We can find lithium products in our everyday lives. The increasing demand for lithium-ion batteries in mobile devices and electric vehicles keeps this stock on Australian investors’ radars.
But to invest in lithium, you’ll need a brokerage account. Weigh a few trading platforms to find a brokerage firm that best fits your investing needs.
Frequently asked questions
Jiangxi Ganfeng Lithium is considered the largest lithium supplier and miner in the world. The company has a market capitalisation of $27.38 billion and holds lithium resources in China, Australia, Argentina and Mexico.
Unlike most metals, there is no traded price for lithium. Many companies sell their lithium on long-term contracts.
Although the supply for lithium either exceeds or matches the demand in recent years, lithium is a comparatively rare element because you can only find it in low concentrations, according to the Handbook of Lithium and National Calcium.
Was this content helpful to you?
Thank you for your feedback!
To make sure you get accurate and helpful information, this guide has been edited by Moira Daniels as part of our fact-checking process.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs. See full bio
Kylie's expertise
Kylie has written 149 Finder guides across topics including:
If you’re thinking of investing in gold, our guide will explain how and where to buy gold in Australia as well as the pros and cons of investing in it.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
