In this article, we will be taking a look at the 16 biggest lithium stocks to invest in.
Metals, minerals, and various resources have historically played a vital role in the worldwide economy and, consequently, in financial markets. Given their sustained demand, businesses engaged in their exploration, supply, and processing have remained significant. Lithium stands out as a notable metal that has rapidly gained importance for corporations and individuals globally due to several factors. In an era marked by a critical juncture concerning climate change, lithium has transcended its past status as a minor mineral, overshadowed by silver and gold, to become pivotal in the fight against carbon emissions. Classified as a soft, silvery-white alkali metal, sourced from brine reservoirs and lithium-rich minerals like spodumene, lithium has become indispensable for manufacturing almost all traction batteries powering electric vehicles (EVs) and consumer electronics.
Despite the existence of electric vehicles for several years, recent advancements in technology and cost reduction have made them a more feasible choice for consumers. Concurrently, the demand for lithium to meet consumer demands has surged. According to a report from the International Energy Agency, the demand for lithium, particularly for use in EVs and battery storage, is projected to skyrocket by more than 40 times between 2020 and 2040.
As per Fortune Business Insights, the global lithium market achieved a valuation of $37.8 billion in 2022. Forecasts indicate a robust growth trajectory, with the market expected to reach $89.9 billion by 2030, reflecting a notable CAGR of 22.1% from 2023 to 2030. The surge in demand for hybrid and electric vehicles, coupled with the need for energy-intensive portable electronics and storage systems, has significantly propelled the market’s advancement. The increasing embrace of electric vehicles stems from heightened environmental awareness, driven by concerns about pollution, leading to a preference for vehicles that contribute to lower carbon emissions. Electric vehicles are hailed as an eco-conscious choice, emitting fewer greenhouse gases over their lifecycle compared to conventional vehicles. Tesla, Inc. (NASDAQ:TSLA) is actively engaged in developing advanced EV batteries, with a particular focus on lithium iron phosphate batteries. This initiative aims to drive down vehicle costs, extend the vehicle’s range beyond 400 miles, and potentially increase the battery’s lifespan to an impressive 1 million miles.
Anticipated to undergo substantial, sustained growth, the lithium market presents a promising opportunity for investors to benefit from these long-term trends. In this piece, we will delve into prominent companies within the worldwide lithium battery market, featuring Livent Corporation (NYSE:LTHM), Tesla, Inc., and Albemarle Corporation (NYSE:ALB), among others detailed further below.
Photo by Mika Baumeister on Unsplash
Our Methodology
We have shortlisted the 16 biggest lithium stocks based on their market capitalization as of September 29. While there are many stocks that provide limited exposure to the lithium industry, we have shortlisted only those stocks that are either pure plays on lithium, benefit greatly from the growth of the lithium industry, or provide substantial exposure to the industry through their core operations. Additionally, we have provided hedge fund sentiments to provide further information regarding each stock on this list.
Lithium Stocks List: 16 Biggest Lithium Stocks
16. Li-Cycle Holdings Corp. (NYSE:LICY)
Market Capitalization as of September 29: $632.28 million
Li-Cycle Holdings Corp. (NYSE:LICY) is a Canadian firm dedicated to the recovery and recycling of lithium-ion battery resources. Its expertise lies in the extraction of valuable components from used batteries, encompassing lithium, nickel, cobalt, graphite, copper, and aluminum. Furthermore, Li-Cycle Holdings Corp. provides an array of products derived from these materials, including lithium carbonate, cobalt sulphate, nickel sulphate, and manganese carbonate.
On September 26, Li-Cycle Holdings Corp. celebrated the opening of its first Spoke recycling facility in Europe, situated in Sülzetal near Magdeburg in Saxony-Anhalt, Germany. This Spoke efficiently employs Li-Cycle’s patented and eco-friendly ‘Generation 3’ Spoke technology to directly manage diverse lithium-ion battery waste, encompassing complete electric vehicle battery packs. Notably, this process negates the necessity for discharging, dismantling, or thermal treatment. The primary production line is presently operational, while a parallel line is projected to commence operations by late 2023. Each primary line is capable of processing up to 10,000 tonnes of lithium-ion battery material annually. Additionally, plans for an extra 10,000 tonnes of supporting capacity are in place, aiming for a combined processing capacity of 30,000 tonnes annually for the facility. This positions the Germany Spoke as one of the major entities within Li-Cycle’s existing portfolio and one of the significant facilities of its kind across Europe.
According to Insider Monkey’s second quarter database, 10 hedge funds were bullish on Li-Cycle Holdings Corp., compared to 12 funds in the prior quarter. Zilvinas Mecelis’ Covalis Capital is the largest stakeholder of the company, with a little over 12 million shares worth roughly $66.72 million.
Much like Livent Corporation, Tesla, Inc., and Albemarle Corporation, Li-Cycle Holdings Corp. is a stock investors should take note of.
15. FREYR Battery (NYSE:FREY)
Market Capitalization as of September 29: $683.13 million
FREYR Battery (NYSE:FREY) is actively involved in manufacturing and marketing battery cells used for stationary energy storage, electric mobility, and marine applications across Europe and globally. The corporation’s objective is to offer large-scale environmentally friendly battery solutions, contributing to the reduction of global emissions.
At the end of Q2 2023, 18 hedge funds were bullish on FREYR Battery and disclosed stakes worth $171.7 million in the company. This is compared to 20 positions in the preceding quarter with stakes worth $176.1 million. As of Q2, Todd J. Kantor’s Encompass Capital Advisors is the top investor in the company and has a position worth $64.99 million.
14. Piedmont Lithium Inc. (NASDAQ:PLL)
Market Capitalization as of September 29: $762.07 million
Piedmont Lithium Inc. (NASDAQ:PLL) is recognized as a top-tier producer of lithium, known for its cost-effectiveness on a global scale. Operating in the exploration stage, this company is actively involved in exploring and advancing resource projects within the United States. Its primary asset is a complete ownership stake in the Carolina Lithium Project, encompassing around 3,116 acres situated within the Carolina Tin-Spodumene Belt.
In mid-August of 2023, Piedmont Lithium Inc. reached an agreement to finance the Ewoyaa lithium project in Ghana, securing a 22.5% ownership stake. This aligns with their previous contract with Atlantic Lithium from July 2021, where Piedmont Lithium Inc. had the option to acquire a 50% stake in the project. Initially, the company will acquire a 22.5% interest by funding the definitive feasibility study (DFS). To obtain the remaining 27.5% stake, Piedmont plan to invest an additional $70 million in development capital. Furthermore, the company has committed to sharing the remaining project capital costs equally with Atlantic, amounting to a total of $185 million. Piedmont’s total financial contribution is estimated to be approximately $128 million. However, this investment is pending final approvals from government and regulatory bodies.
By the end of the second quarter of 2023, 14 hedge funds demonstrated keen interest in Piedmont Lithium Inc., revealing positions valued at $66.25 million within the company. This marked an increase from the the 13 hedge funds in the previous quarter.
13. Enovix Corporation (NASDAQ:ENVX)
Market Capitalization as of September 29: $2.01 billion
Enovix Corporation (NASDAQ:ENVX) holds a prominent position in the advancement and manufacture of advanced silicon-anode lithium-ion batteries. The company’s exclusive 3D cell design enhances energy density while preserving a long cycle life. Enovix Corporation is recognized as one of the major players in the lithium stock domain.
On September 22, Enovix Corporation declared its acquisition of Routejade, a reputable Korean battery manufacturer. The deal encompasses about 6.2 million shares of Enovix common stock and approximately $16.5 million in cash, assuming a complete purchase of Routejade. This strategic acquisition affords the company vertical integration involving electrode coating and battery pack manufacturing. Additionally, it brings in a well-established lithium-ion battery enterprise with operational facilities in Korea, along with valuable supplementary products, clientele, and suppliers. The transaction’s conclusion is anticipated in the fourth quarter of 2023, promising immediate accretion to Enovix Corporation.
By the end of 2023’s second quarter, 20 out of the 910 hedge funds tracked by Insider Monkey had held a stake in Enovix Corporation. Peter S. Park’s Park West Asset Management is the company’s biggest hedge fund investor since it owns $97 million worth of shares.
12. Energizer Holdings, Inc. (NYSE:ENR)
Market Capitalization as of September 29: $2.29 billion
Energizer Holdings, Inc. (NYSE:ENR) is a global company that produces, markets, and distributes household batteries, specialty batteries, and lighting products across the world. They offer a range of batteries using various minerals and metals including lithium, alkaline, and carbon zinc, particularly for hearing aids. The company is well-known internationally for its prominent brands such as Energizer, Eveready, Rayovac, and Varta.
Earlier this July, Barclays adjusted the price target for Energizer Holdings, Inc., reducing it from $42 to $40 while maintaining an Overweight rating on the company’s shares. The analyst at Barclays continues to show a preference for staples companies that demonstrate clear potential for volume growth and those that offer attractive relative valuations. As the Q2 reports approached, investors were shifting their focus, moving away from simply rewarding margin-driven successes and instead prioritizing sales, particularly volume and performance, especially as pricing peaks. The Barclays analyst emphasizes sticking with companies that have a clearer outlook on volume in the short term or possess unique growth narratives, at least for the time being.
Among the hedge funds being tracked by Insider Monkey, New York-based firm GAMCO Investors is a leading shareholder in Energizer Holdings, Inc., with 1.26 million shares worth more than $42.4 million.
11. Lithium Americas Corp. (NYSE:LAC)
Market Capitalization as of September 29: $2.72 billion
Lithium Americas Corp. (NYSE:LAC) is a Canadian mining firm engaged in the extraction of lithium from spodumene and pegmatite ores in both the United States and Argentina. Leveraging its cost-effective production facilities and a robust foothold in the electric vehicle (EV) battery market, the company enjoys a competitive edge over its competitors.
Earlier this June, Lithium Americas Corp. stated that it had successfully manufactured lithium carbonate of a grade lower than that required for batteries at the Caucharí-Olaroz project in Argentina’s Jujuy province. The mining company highlighted that extra purification processing equipment, intended to attain battery-grade lithium carbonate, will be present on-site in the latter half of the year as per the outlined plan. Throughout the ramp-up phase towards reaching the production capacity of 40,000 units of battery-grade lithium carbonate equivalent, Lithium Americas anticipates Caucharí-Olaroz to function below its designated capacity, generating lithium carbonate that meets specifications lower than those for battery-quality.
As of the end of the second quarter of 2023, 12 hedge funds tracked by Insider Monkey reported owning stakes in Lithium Americas Corp.. Steve Cohen’s Point72 Asset Management is a leading stakeholder within the company, with a stake worth approximately $18.76 million.
Massif Capital made the following comment about Lithium Americas Corp. in its Q1 2023 investor letter:
“During the first quarter, Lithium Americas Corp. (NYSE:LAC) had several positive events, including a favorable record of decision ruling for Thacker Pass, paving the way for construction of the mine to start, a revised Thacker resource/cost estimates, and GM’s financing/offtake agreement. Even though LAC is non-producing and its stock is down 34% over the past year (compared to the larger lithium producer’s 3%), the stock remains one of our favorites with multiple catalysts (and still up roughly 600% from our initial purchase price):
- Cauchari-Olaroz Stage I first production in sight and Stage II initiation by year-end,
- Substantial earthworks beginning 2H23 at Thacker,
- Growth potential with greater guidance on Pastos Grandes, and
- Formal separation of North American Assets and Argentine assets into separate publicly traded entities
As Cauchari-Olaroz in Argentina and Thacker Pass come online, volumes will effectively be marked at leading-edge pricing. As such, it seems prudent to continue underwriting growth, especially given the firm’s experienced management team with a visible pipeline to incremental supply before 2025. These qualities make one or both post-separation entities attractive buyout targets for numerous suitors…” (Please click here to read the full text)
10. QuantumScape Corporation (NYSE:QS)
Market Capitalization as of September 29: $3.28 billion
QuantumScape Corporation (NYSE:QS), an enterprise in the developmental phase, is committed to introducing solid-state lithium-metal batteries tailored for electric vehicles and various applications. It stands as a notable lithium stock worth keeping an eye on.
During the latter part of 2022, QuantumScape Corporation dispatched its initial prototypes featuring 24-layer solid-state cells to automakers for testing, which included Volkswagen. Presently, the battery manufacturer has secured a collaboration with a potential launch partner. However, details regarding the identity of this partner—whether it is the German car manufacturing giant, one of its subsidiaries, or an entirely different company—have not been disclosed. As per the company’s latest quarterly report, the objective of this collaboration with the undisclosed launch customer is to expedite the introduction of the technology into the electric vehicle market. QuantumScape Corporation has outlined that the initial commercial product will be a battery cell known as QSE-5, possessing a charge capacity of approximately 5 Ah. This variant is expected to boast an energy density exceeding 800 Wh/L and enable a charging capability from ten to 80 percent in approximately 15 minutes.
As per Insider Monkey’s database for the second quarter of 2023, 17 hedge funds were bullish on QuantumScape Corporation, compared to 15 funds in the previous quarter. Philippe Laffont’s Coatue Management has the largest position in the company, with 3.06 million shares valued at over $24.49 million.
9. Livent Corporation (NYSE:LTHM)
Market Capitalization as of September 29: $3.31 billion
Livent Corporation, a fully integrated lithium company, manufactures lithium for use in a range of lithium products, which are used primarily in lithium-based batteries, specialty polymers and chemical synthesis applications.
According to Livent Corporation’s financial results for the second quarter of 2023, the company achieved a revenue of $235.8 million, reflecting a 7% decrease from the first quarter of 2023 and an 8% increase compared to the second quarter of 2022. The reported GAAP net income for this quarter amounted to $90.2 million, equivalent to 43 cents per diluted share. This marked a decrease from the previous quarter’s net income of $114.8 million and an increase from the net income of $60.0 million in the same quarter last year. Additionally, the adjusted EBITDA for the quarter stood at $134.5 million, indicating a 15% decrease from the previous quarter but a significant 42% rise from the same quarter in the previous year.
At the end of Q2 2023, 31 hedge funds held stakes in Livent Corporation worth $194.19 million. This is compared to 32 positions in the previous quarter with stakes worth $162.78 million. Joho Capital is one of the top investors in Livent Corporation and has a position worth $19.47 million in the company as of Q2 2023.
8. Sigma Lithium Corporation (NASDAQ:SGML)
Market Capitalization as of September 29: $3.55 billion
Sigma Lithium Corporation (NASDAQ:SGML) stands as a prominent Canadian mining enterprise, specializing in the exploration and advancement of lithium deposits situated in Brazil. The company possesses full ownership of the Grota do Cirilo, Genipapo, Santa Clara, and São José properties, encompassing 27 mineral rights and spanning a total area of about 191 square kilometers.
On September 21, Sigma Lithium Corporation announced that it had succeeded in producing 22,500 tonnes of battery-grade, carbon-neutral lithium, referred to as “Triple Zero Green Lithium.” The product is devoid of hazardous chemicals and tailings, aligning with sustainability principles. This lithium has been readied at Vitoria Port for transportation to Glencore as stipulated in their partnership. The collaboration with Glencore is oriented towards establishing an eco-friendly, socially responsible lithium supply chain, ultimately serving the global electric vehicle market.
According to Insider Monkey’s first quarter database, 12 hedge funds were long Sigma Lithium Corporation, compared to 14 funds in the last quarter. Israel Englander’s Millennium Management is a prominent stakeholder of the company, with 496,165 shares worth approximately $19.95 million.
7. EnerSys (NYSE:ENS)
Market Capitalization as of September 29: $3.89 billion
EnerSys (NYSE:ENS) specializes in stored energy systems and technology solutions tailored for industrial uses. Their offerings encompass the manufacturing and distribution of lithium batteries for both reserve power and motive power, along with battery chargers, power equipment, battery accessories, and outdoor equipment enclosure systems. These products are supplied to customers across the globe.
On July 14, Michael Gallo at CL King initiated coverage on shares of EnerSys with a Buy rating. The analyst also announced a price target of $137 on the stock.
EnerSys was included in the portfolios of 29 investors by the conclusion of Q2 2023. Together, these investment funds held stakes valued at $350.3 million in the company, marking an increase from $329.6 million in the previous quarter across 23 positions. Notably, as of the second quarter, Herbert Frazier’s Hill City Capital emerged as the primary investor in EnerSys with a significant stake valued at $65.9 million.
Vulcan Value Partners made the following comment about EnerSys in its second quarter 2023 investor letter:
“EnerSys (NYSE:ENS) is a global leader in stored energy solutions for industrial applications. Pandemic related supply chain issues slowed revenue growth, depressed margins, and decreased free cash flow. Management has done a good job recapturing higher input costs. At their recent investment day, they confirmed that their growth drivers remain in place, though they may develop slower than the company originally forecast.”
6. FMC Corporation (NYSE:FMC)
Market Capitalization as of September 29: $8.35 billion
FMC Corporation (NYSE:FMC) is a chemical manufacturing enterprise based in Philadelphia, Pennsylvania, with its origins dating back to 1883 as a producer of insecticides. Over the years, the company has diversified into various industries. FMC Corporation has gained longstanding recognition for its pioneering work in developing and manufacturing alkyllithiums, aryllithiums, lithium amides, lithium alkoxides, and lithium metal hydrides. These compounds serve as crucial reducing agents in the production of pharmaceutical and agricultural intermediates.
FMC Corporation was a common component of the portfolios of 32 hedge funds out of the 910 tracked by Insider Monkey during the second quarter of 2023. Notable investors included Glenview Capital, Cardinal Capital, and Citadel Investment Group, among others.
FMC Corporation joins the ranks among the likes of Livent Corporation, Tesla, Inc., and Albemarle Corporation as one of the biggest lithium stocks to invest in.
5. Lucid Group, Inc. (NASDAQ:LCID)
Market Capitalization as of September 29: $12.76 billion
Lucid Group, Inc. (NASDAQ:LCID) is an American manufacturer of electric luxury sports cars and grand tourers headquartered in Newark, California. It supplies electric vehicles (EVs) with lithium-ion batteries, among more.
Lucid Group, Inc. did not meet the expected earnings for the second quarter of 2023 and fell short of analysts’ estimates for both earnings and revenue. Nevertheless, the company experienced a 55% year-over-year increase in Q2 revenue and substantially increased its car deliveries, reaching 1,404 units, which was more than double the 679 units delivered in Q2 2022. The management of Lucid Group, Inc. remains optimistic about their production targets, aiming to manufacture 10,000 vehicles in 2023, a notable increase from the 7,180 vehicles produced in 2022.
Lucid Group Inc. was seen in the 13F holdings of 18 hedge funds at the end of the second quarter. Their total stake value in the company was $98.8 million. This is compared to 16 hedge funds in the prior quarter with stakes worth $21.7 million.
4. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
Market Capitalization as of September 29: $16.14 billion
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a chemical enterprise based in Chile, specializing in the production of plant nutrients, iodine, lithium, and industrial chemicals. As one of the largest lithium producers globally, SQM primarily operates its main production facilities in the Atacama Desert within the Tarapacá and Antofagasta regions, leveraging the region’s abundant natural resources.
At the end of Q2 2023, 24 hedge funds were bullish on Sociedad Química y Minera de Chile S.A. and disclosed stakes worth $324.9 million in the company. This is compared to 20 positions in the preceding quarter with stakes worth $310.8 million in the company. As of the second quarter, Ken Griffin’s Citadel Investment Group is the largest shareholder in the company and has stakes worth $118.24 million in the company.
3. Albemarle Corporation (NYSE:ALB)
Market Capitalization as of September 29: $19.95 billion
Albemarle Corporation is a company focused on specialty chemicals manufacturing, with its headquarters situated in Charlotte, North Carolina. The company functions through three primary divisions: lithium, bromine specialties, and catalysts. Notably, Albemarle emerged as the largest supplier of lithium for electric vehicle batteries as of the year 2020.
Earlier this August, Albemarle Corporation released its results for the second quarter. The adjusted earnings per share (EPS) for the quarter stood at $7.33, surpassing expectations by $2.81. The quarterly revenue witnessed a substantial increase of 60.1% compared to the same period the previous year, although it fell short of estimates by $20 million.
At the close of Q2 2023, 41 hedge funds were long Albemarle Corporation and disclosed stakes worth $436.49 million in the company. The hedge fund sentiment for the stock is positive. As of the second quarter, Philippe Laffont’s Coatue Management is one of the top investors in Albemarle Corporation and has stakes worth $154.34 million in the company.
2. Rio Tinto Group (NYSE:RIO)
Market Capitalization as of September 29: $164.89 billion
Rio Tinto Group (NYSE: RIO) is dedicated to the exploration, mining, and processing of mineral resources on a global scale. Their portfolio encompasses a diverse array of minerals, such as lithium, aluminum, copper, iron ore, diamonds, gold, borates, titanium dioxide, salt, silver, and molybdenum. Rio Tinto Group is notably considered one of the top lithium stocks to keep an eye on.
On June 28, Rio Tinto Group unveiled plans to establish a battery laboratory in Australia, aimed at researching various technologies related to battery production, manufacturing, and chemistry. While iron ore remains a primary revenue source for Rio Tinto Group, the company is actively seeking to expand its production of commodities vital for the advancement of clean energy initiatives.
As of June 2023, 29 hedge funds among the 910 profiled by Insider Monkey had bought the firm’s shares. Rio Tinto Group’s largest hedge fund investor is Ken Fisher’s Fisher Asset Management since it owns 163,710 shares that are worth $11.7 million through a stake worth $950 million.
1. Tesla, Inc. (NASDAQ:TSLA)
Market Capitalization as of September 29: $784.06 billion
Tesla, Inc. is a multinational American company focusing on automotive and clean energy, with its headquarters located in Austin, Texas. The company specializes in the design and production of electric vehicles, stationary battery energy storage solutions ranging from household to grid-scale, as well as solar panels, solar shingles, and associated products and services.
Tesla, Inc. commenced the construction of its lithium refinery in the broader Corpus Christi region of Texas in May 2023. The completion of this facility will signify a substantial financial investment exceeding $1 billion in the Southwest Texas vicinity. This significant investment underscores the company’s proactive strategy to ensure a consistent supply of high-grade lithium hydroxide suitable for batteries within North America. Moreover, Tesla, Inc. is already engaged in the production of lithium-ion batteries at its Gigafactories, further solidifying its position as one of the top lithium stocks for investment.
According to Insider Monkey’s first quarter database, 79 hedge funds were bullish on Tesla, compared to 82 funds in the prior quarter. Catherine D. Wood’s ARK Investment Management is a prominent stakeholder of the company, with 4.8 million shares worth $1.26 billion.
Here’s what Baron Funds said about Tesla, Inc. in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text).
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This article is originally published at Insider Monkey.
