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11 Best Lithium Battery Stocks to Buy Now

In this article, we will discuss the 11 best lithium battery stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Lithium Battery Stocks to Buy Now.

Electric vehicles are becoming increasingly popular, as economies look for ways to reduce their environmental impact. While electric vehicles have been around for many years, they have only recently become a more viable option for consumers, thanks to technological advances and a decrease in cost. Electric vehicles offer a number of advantages over traditional gasoline-powered cars, including lower emissions, cheaper operating costs, and a smaller environmental footprint. The adoption of electric vehicles across the globe is causing a surge in demand for lithium, a key element in EV batteries. According to the International Energy Agency, the demand for lithium for use in EVs and battery storage is expected to grow by over 40 times between 2020 and 2040.

The Lithium Battery Industry: An Analysis

According to an industry analysis report by Markets N Research, the global lithium-ion battery market was valued at $43.5 billion in 2021. The market is expected to grow at a compound annual rate of 22.80% from 2022 through 2028 and reach a valuation of $149.2 billion by the end of the forecasted period. This growth is attributed to favorable demand trends for consumer electronics worldwide, a surge in demand for rechargeable batteries, the rising adoption of electric vehicles, and government initiatives and incentives for growing the sales of electric vehicles. Region-wise, North America held the dominant market share of the global lithium-ion battery market and is expected to register the highest CAGR through the forecasted period, and within North America, the U.S. held the largest share of the market in 2021 and is expected to remain at the forefront through 2028.

The lithium battery market is expected to experience strong secular growth and lithium stocks can be an ideal way for investors to capitalize on these trends. This article will examine some of the leading companies operating in the global lithium battery market, which include Livent Corporation (NYSE:LTHM), Sociedad Quimica y Minera (NYSE:SQM), and Albemarle Corporation (NYSE:ALB) . These stocks, among others, are discussed in detail below.

Our Methodology

To determine the 11 best lithium battery stocks to buy now, we scoured industry analysis reports and identified key players operating in the space. We filtered out the best companies based on their market positions and project pipelines. Further, we gave weight to the market sentiment around each stock and included stocks that had positive analyst sentiment and positive hedge fund sentiment. These stocks are ranked according to their popularity among elite hedge funds, from least to most.

Best Lithium Battery Stocks to Buy Now

11. Standard Lithium Ltd. (NYSE:SLI)

Number of Hedge Fund Holders: 3

Standard Lithium Ltd. (NYSE:SLI) is a Canadian-based materials company that is involved in the lithium mining and processing industry. The company’s flagship project is the Lanxess project which spans over 150,000 acres and is located in southern Arkansas. The company’s DLE technology has the potential to reduce the recovery time for lithium extraction, and also lower carbon emissions while achieving a high-purity lithium chloride solution that can be used to produce battery-grade lithium. Standard Lithium Ltd. (NYSE:SLI) is ranked among the best lithium battery stocks to buy now.

On November 1, Standard Lithium Ltd. (NYSE:SLI) announced that the company has received Notices of Allowance for its first two U.S. patent applications for its DLE technology from the USPTO.

At the end of Q3 2022, 3 hedge funds were long Standard Lithium Ltd. (NYSE:SLI) and held positions worth $443,000 in the company. Of those, Millennium Management was the largest shareholder in the company and held a position worth $220,000.

10. Sigma Lithium Corporation (NASDAQ:SGML)

Number of Hedge Fund Holders: 8

Sigma Lithium Corporation (NASDAQ:SGML) is a leading Canadian mining company that is focused on the exploration and development of lithium deposits in Brazil. The company has a strong focus on the electric vehicle (EV) market, and its products are used in a variety of EV applications, including passenger cars, commercial vehicles, and industrial vehicles. The company wholly owns the Grota do Cirilo, Genipapo, Santa Clara, and São José properties which are comprised of 27 mineral rights and span roughly 191 square kilometers in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil.

Sigma Lithium Corporation (NASDAQ:SGML) is a leading supplier of battery-grade lithium and is one of the best lithium battery stocks to buy now. As of November 24, the stock has gained 236.45% year to date and the company is worth $3.15 billion on the open market.

At the end of Q3 2022, 8 hedge funds held stakes in Sigma Lithium Corporation (NASDAQ:SGML). The total value of these stakes amounted to $45.5 million, up from $23.7 million in the previous quarter with 3 positions. The hedge fund sentiment for the stock is positive. As of September 30, Potrero Capital Research is the largest investor in Sigma Lithium Corporation (NASDAQ:SGML) and has a stake worth $16.2 million in the company.

9. Piedmont Lithium Inc. (NASDAQ:PLL)

Number of Hedge Fund Holders: 12

Piedmont Lithium Inc. (NASDAQ:PLL) is an American mining company that focuses on the exploration and development of lithium deposits in the United States. The company’s flagship project is the 100%-owned Piedmont Lithium Project, located within the Carolina Tin-Spodumene Belt (TSB). Piedmont Lithium Inc. (NASDAQ:PLL) is a leading lithium producer that is positioned to capitalize on the growing electric vehicle (EV) market. The company is one of the world’s lowest-cost producers of lithium, and its products are used in a variety of applications, including EVs. Piedmont Lithium Inc. (NASDAQ:PLL) has a strong strategic position in the EV market and is well-positioned to benefit from the continued growth of the EV market. The stock is ranked among the best lithium battery stocks to buy now.

Wall Street sees upside to Piedmont Lithium Inc. (NASDAQ:PLL). On October 27, B. Riley analyst Matthew Key took coverage of Piedmont Lithium Inc. (NASDAQ:PLL) with a Buy rating and raised his price target to $108 from $95.

At the close of the third quarter of 2022, 12 hedge funds were eager on Piedmont Lithium Inc. (NASDAQ:PLL) and disclosed positions worth $34.3 million in the company. This is compared to 11 hedge funds in the previous quarter with stakes worth $30.3 million. The hedge fund sentiment for the stock is positive.

8. Lithium Americas Corp. (NYSE:LAC)

Number of Hedge Fund Holders: 14

Lithium Americas Corp. (NYSE:LAC) is a Canadian mining company focused on the global supply of lithium. The company has operations in the United States and Argentina and is well-positioned to benefit from the growing demand for EVs. The company’s low-cost production facilities and strong position in the EV battery market give it a competitive advantage over its peers. Lithium Americas Corp. (NYSE:LAC) is one of the best lithium battery stocks to buy now and is valued at $3.28 billion, as of November 24.

On November 11, B. Riley analyst Matthew Key revised his price target on Lithium Americas Corp. (NYSE:LAC) to $39 from $41 and maintained a Buy rating on the shares. This November, Evercore ISI analyst Stephen Richardson took coverage of Lithium Americas Corp. (NYSE:LAC) with an Outperform rating and a $35 price target.

At the end of Q3 2022, 14 hedge funds were bullish on Lithium Americas Corp. (NYSE:LAC) and disclosed stakes worth $172.3 million in the company. This is compared to 9 positions in the preceding quarter with stakes worth $110.8 million. The hedge fund sentiment for the stock is positive. As of September 30, Himension Capital is the largest shareholder in Lithium Americas Corp. (NYSE:LAC) and has a stake worth $85.6 million in the company.

7. Li-Cycle Holdings Corp. (NYSE:LICY)

Number of Hedge Fund Holders: 15

Li-Cycle Holdings Corp. (NYSE:LICY) is a leading North American company that provides solutions for the recycling of lithium-ion batteries. The company’s recycling process is designed to recover up to 95% of a battery’s lithium, cobalt, and other metals. Li-Cycle Holding Corp. (NYSE:LICY) is well-positioned to capitalize on the growing demand for lithium-ion battery recycling solutions. The company’s technology is proven and its recycling facility is up and running. With the growing adoption of electric vehicles and other battery-powered consumer electronics products, demand for lithium-ion battery recycling solutions is expected to grow significantly in the coming years. The stock ranks among the best lithium battery stocks to buy now.

Wall Street is bullish on Li-Cycle Holdings Corp. (NYSE:LICY). On September 19, Piper Sandler analyst Alexander Potter started coverage of Li-Cycle Holdings Corp. (NYSE:LICY) with an Overweight rating and a $10 price target. This September, Citi analyst P.J. Juvekar updated his price target on Li-Cycle Holdings Corp. (NYSE:LICY) to $8 from $10 and maintained a Buy rating on the shares.

At the close of the third quarter of 2022, 15 hedge funds were long Li-Cycle Holdings Corp. (NYSE:LICY) and held stakes worth $95.75 million in the company. Of those, Covalis Capital was the top investor that held a position worth $61.8 million in the company.

6. EnerSys (NYSE:ENS)

Number of Hedge Fund Holders: 18

EnerSys (NYSE:ENS) is a global leader in stored energy solutions for industrial applications. The company has over 20 years of experience in the design, manufacture, and distribution of batteries, chargers, and related equipment. The company’s batteries are used in commercial electric vehicles such as electric forklift trucks and it is among the world’s largest manufacturers of industrial batteries and chargers. In addition to industrial vehicles, the company’s batteries are used in a variety of applications including medical devices and consumer electronics.  EnerSys (NYSE:ENS) is ranked among the best lithium battery stocks to buy now.

On November 9, EnerSys (NYSE:ENS) announced earnings for the fiscal second quarter of 2023. The company reported earnings per share of $1.11 and outperformed consensus by $0.03. The company’s revenue for the quarter amounted to $899.40 million, up 13.65% year over year, and beat Wall Street estimates by $11.92 million.

At the end of Q3 2022, 18 hedge funds disclosed stakes in EnerSys (NYSE:ENS) worth $251.2 million. This is compared to 20 positions in the previous quarter with stakes worth $222.8 million. As of September 30, Scopia Capital is the top shareholder in EnerSys (NYSE:ENS) and has stakes worth $86.6 million in the company.

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Disclosure: None. 11 Best Lithium Battery Stocks to Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

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The “Toll Booth” Operator of the AI Energy Boom

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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Click to continue reading…