In this article, we will discuss the 15 biggest lithium battery stocks.
At a time when the world is at a crossroads with regard to climate change, lithium has risen from once being an inconsequential mineral compared to silver and gold, to being critical in the move against carbon emissions. Characterized as a soft, silver-white alkali metal that is found within brine reservoirs and lithium-containing rocks, such as spodumene, lithium is vital for the production of virtually all traction batteries currently used in EVs as well as consumer electronics. Although electric vehicles have been around for some years now, they have only recently become a more viable option for consumers, thanks to technological advances and a decrease in cost. In tandem, the need for lithium to meet consumer ends has increased as well. Based on a report by the International Energy Agency, the demand for lithium for use in EVs and battery storage is forecast to grow by over 40 times between 2020 and 2040.
According to an industry analysis report by Grand View Research, the global lithium market size was valued at $6.83 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.0% from 2022 to 2030. 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 more sustainable energy alternatives. That said, however, meeting the demand for lithium will not be a trivial problem, as a report by McKinsey states that the surging EV demand in 2020 has seen lithium prices skyrocket by around 550% in a year. By the beginning of March 2022, lithium carbonate prices had passed $75,000 per metric ton while lithium hydroxide prices had exceeded $65,000 per metric ton.
The lithium market is expected to experience strong secular growth and stocks playing in this industry 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), among others discussed below.
Photo by Kumpan Electric on Unsplash
Our Methodology
To determine the 15 biggest stocks, 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. The stocks on this list are ranked according to the number of hedge funds that hold stakes within them.
Lithium Stocks List: 15 Biggest Lithium Stocks
15. 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. Ranked among the biggest lithium stocks, the company’s flagship project is located in southern Arkansas, where it is engaged in the testing and proving of the commercial viability of sustainable lithium extraction from over 150,000 acres of permitted brine operations.
On November 1, Standard Lithium Ltd. announced that the company has received Notices of Allowance for its first two U.S. patent applications for its DLE technology from the USPTO. Additionally, the company announced that it has completed all necessary agreements with Lanxess Corporation to secure access to a proposed commercial lithium plant site.
At the end of Q3 2022, 3 hedge funds were long Standard Lithium Ltd. 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.
Much like Livent Corporation, Sociedad Quimica y Minera, and Albemarle Corporation, Standard Lithium Ltd. is a decent lithium stock.
14. 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 holds 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 27 mineral rights covering an area of approximately 191 square kilometers.
On December 5, Canaccord analyst Katie Lachapelle raised the price target on Sigma Lithium Corporation to C$64 from C$45 and maintained a Speculative Buy rating on the shares of the company. As of December 19, the stock has gained 232.51% year-to-date.
At the end of Q3 2022, 8 hedge funds held stakes in Sigma Lithium Corporation. 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 and has a stake worth $16.2 million in the company.
13. Piedmont Lithium Inc. (NASDAQ:PLL)
Number Of Hedge Fund Holders: 12
One of the world’s lowest-cost producers of lithium, Piedmont Lithium Inc. (NASDAQ:PLL) is an exploration stage company that 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 3,116 acres located within the Carolina Tin-Spodumene Belt.
DA Davidson analyst Matt Summerville raised the price target on Piedmont Lithium Inc. to $90 from $85 and maintained a Buy rating on the shares. The analyst cites the recent developments across the company’s global lithium assets, including a $142 million DoE grant for Tennessee Lithium.
At the close of the third quarter of 2022, 12 hedge funds were eager on Piedmont Lithium Inc. 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.
12. Energizer Holdings, Inc. (NYSE:ENR)
Number Of Hedge Fund Holders: 13
Energizer Holdings, Inc. (NYSE:ENR) manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide hearing aid using lithium, alkaline, and carbon zinc, among other minerals and metals. The company has been recognized globally by its renowned brand Energizer, Eveready, Rayovac, and Varta.
Earlier this November, Barclays analyst Lauren Lieberman raised her price target on Energizer Holdings, Inc. to $35 from $32 and kept an Overweight rating on the shares. According to the analyst, Energizer “will be a company that ultimately emerges stronger from the myriad challenges of the pandemic.”
Among the hedge funds being tracked by Insider Monkey, New York-based firm GAMCO Investors is a leading shareholder in Energizer Holdings, Inc., with 1.3 million shares worth more than $38 million.
11. QuantumScape Corporation (NYSE:QS)
Number Of Hedge Fund Holders: 14
QuantumScape Corporation (NYSE:QS) is an American company that develops solid state lithium metal batteries for electric vehicles. QuantumScape Corporation began shipping the “A0” samples of its battery cells to its automaker clients on December 20, a key milestone that the company was expecting to reach by the end of the year. These samples are nearly full-size prototypes that will allow the automakers to test and begin the process of validating the company’s technology for automotive use.
Earlier this September, Truist analyst Jordan Levy initiated coverage of QuantumScape Corporation with a Hold rating and $10 price target. According to the analyst, the company has become a leading name in the rapidly growing EV battery industry space and has generated interest from numerous auto OEMs, including a multi-year JV with Volkswagen. Levy adds however that while QuantumScape batteries could eventually come to play a significant role in advancing EV performance and costs, he sees “limited near-term upside” in the current market.
At the end of the third quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $76.46 million in QuantumScape Corporation, compared to 19 in the previous quarter worth $84 million.
10. Lithium Americas Corp. (NYSE:LAC)
Number Of Hedge Fund Holders: 14
Lithium Americas Corp. (NYSE:LAC) is Canadian mining company that is involved in the mined lithium-bearing spodumene and pegmatite ores in the United States and Argentina. The company’s low-cost production facilities and strong position in the EV battery market give it a competitive advantage over its peers.
On December 15, Piper Sandler analyst Charles Neivert lowered the price target on Lithium Americas Corp. to $36 from $38 and kept an Overweight rating on the shares. As a result of the high electric vehicle costs and a slight easing in the near-term lithium demand growth rate, Neivert modestly reduced earnings estimates for the company. However, the new target still reflects considerable upside for the shares since, according to the analyst, lithium “will essentially be sold out for the foreseeable future.”
At the end of Q3 2022, 14 hedge funds were bullish on Lithium Americas Corp. 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. and has a stake worth $85.6 million in the company.
9. 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 recovers up to 95% of all battery materials found within a spent Li-ion battery and reintroduces the materials back into the supply chain.
On December 15, Citi analyst P.J. Juvekar lowered the price target on Li-Cycle Holdings Corp. to $7.50 from $8 and kept a Buy rating on the shares. Although there is an inclination to go back to cyclical chemical names after having lagged in 2022, Juvekar has decided to “stay defensive” going into 2023. He believes the impact of higher rates and uncertainty of the China reopening situation is likely to continue to impact the industry.
At the close of the third quarter of 2022, 15 hedge funds were long Li-Cycle Holdings Corp. 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.
8. EnerSys (NYSE:ENS)
Number Of Hedge Fund Holders: 18
EnerSys (NYSE:ENS) is a stored energy systems and technology provider for industrial applications. The company manufactures and distributes reserve power and motive power batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure systems to customers worldwide.
On November 9, EnerSys released its earnings for the fiscal second quarter of 2023. The company reported an EPS of $1.11, surpassing consensus estimates by $0.03. The company’s revenue for the quarter came in at $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 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 and has stakes worth $86.6 million in the company.
7. FREYR Battery (NYSE:FREY)
Number Of Hedge Fund Holders: 22
FREYR Battery (NYSE:FREY) engages in the production and sale of battery cells for stationary energy storage, electric mobility, and marine applications in Europe and internationally. The company aims to provide industrial scale clean battery solutions to reduce global emissions.
Earlier this October, Cowen analyst Gabe Daoud initiated coverage of FREYR Battery with an Outperform rating and no price target. The analyst calls FREYR “a de-SPAC that has less technology risk than other startups,” arguing that it stands out as a well-positioned advanced lithium-ion battery company leveraging MIT spin-out 24M’s mature technology and management’s manufacturing expertise.
At the end of Q3 2022, 22 hedge funds were bullish on FREYR Battery and disclosed stakes worth $381.2 million in the company. This is compared to 16 positions in the preceding quarter with stakes worth $205.2 million. The hedge fund sentiment for the stock is positive. As of Q3, Sylebra Capital Management is the top investor in the company and has a position worth $182.3 million.
6. FMC Corporation (NYSE:FMC)
Number Of Hedge Fund Holders: 28
FMC Corporation (NYSE:FMC) is an American chemical manufacturing company headquartered in Philadelphia, Pennsylvania, which originated as an insecticide producer in 1883 and later diversified into other industries. For decades, FMC Corporation has been recognized for its development and production of alkyllithiums, aryllithiums, lithium amides, lithium alkoxides and lithium metal hydrides, which are functionally used as reducing agents in the production of pharmaceutical and agricultural intermediates.
On November 15, Loop Capital analyst Christopher Kapsch upgraded FMC Corporation to Buy from Hold with a price target of $149, up from $132. The previous downgrade was based on the analyst’s belief that the stock’s valuation had gotten ahead of the story, but the company has executed well, which helped derisk its earnings progress. Kapsch adds that he is now picturing greater upside in FMC shares.
Ken Griffin’s Citadel Investment Group is FMC Corporation’s largest investor through a $130.17 million stake. As of Q3 2022, 28 hedge funds have positions in FMC Corporation, compared to 29 in the previous quarter.
Aristotle Capital Management mentioned FMC Corporation in its Q1 2022 investor letter. Here is what the firm has to say:
“FMC is an agricultural sciences company providing solutions for the protection of crops from different pests. Its products are used by farmers to ensure bugs, weeds and fungi do not negatively impact their harvest. Headquartered in Philadelphia, Pennsylvania, the company has a rich history dating back to 1883 when inventor John Bean set out to build a better insecticide spray pump. Over the decades, through acquisitions, FMC became a disparate collection of chemical companies. FMC has transformed itself to solely focus on crop chemicals, having acquired DuPont’s crop chemicals portfolio in 2017, and completed the separation of its lithium business in 2019. FMC is now one of the largest patented crop protection companies globally.…” (Click here to see the full text)
Similar to Livent Corporation, Sociedad Quimica y Minera, and Albemarle Corporation,FMC Corporation is a lithium stock that investors should keep their eyes on.
5. Enovix Corporation (NASDAQ:ENVX)
Number Of Hedge Fund Holders: 30
Enovix Corporation (NASDAQ:ENVX) is a leader in advanced silicon-anode lithium-ion battery development and production. The company’s proprietary 3D cell architecture increases energy density and maintains high cycle life. Enovix Corporation is ranked among the biggest lithium stocks.
B. Riley analyst Christopher Souther initiated coverage of Enovix Corporation with a Buy rating and $19 price target. According to Souther, the company’s advanced technology in lithium-ion batteries “will carve out significant share by 2025.” He adds that silicon anode cells “promise to dominate mobile communications,” and Enovix is in an early stage of commercialization, with initial cells already shipping to customers.
At the close of Q3 2022, 30 hedge funds were long Enovix Corporation and held stakes worth $486.6 million in the company. This is compared to 23 positions in the previous quarter with stakes worth $273 million. As of the third quarter, Park West Asset Management is the largest investor in Enovix Corporation and has a stake worth $166.7 million in the company.
4. Livent Corporation (NYSE:LTHM)
Number Of Hedge Fund Holders: 31
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.
Earlier this October, B. Riley analyst Matthew Key assumed coverage of Livent Corporation with a Neutral rating and price target of $32, up from $30. Key argues that lithium has been the best-performing commodity since the start of 2021 and the strong outlook for electric vehicle sales will support robust pricing over the near term. However, due to a healthy pipeline of lithium growth projects, the analyst expects gradual declines in pricing as supply/demand approaches equilibrium by the end of 2025.
At the end of Q3 2022, 31 hedge funds held stakes in Livent Corporation worth $360 million. This is compared to 30 positions in the previous quarter with stakes worth $294 million. Joho Capital is the top investor in Livent Corporation and has a position worth $91.2 million in the company as of Q3 2022.
Here is what First Pacific Advisors had to say about Livent Corporation in its third-quarter 2022 investor letter:
“Livent Corporation (NYSE:LTHM) is an integrated, low-cost lithium miner and processor that was spun out of FMC Corporation in 2018.9 Lithium is an essential component of electric vehicle batteries, is chronically undersupplied and spot Lithium Carbonate continues to hit new highs even as other commodity prices have come down. 10 Livent is currently running at roughly breakeven profitability, but our work suggests they will benefit from rising Lithium prices and credible capacity expansion plans. This is an unusual investment for us – we are generally wary of our ability to forecast commodity markets and we have sized the Livent position commensurately.”
3. Sociedad Quimica y Minera (NYSE:SQM)
Number Of Hedge Fund Holders: 34
Sociedad Química y Minera is a Chilean chemical company and a supplier of plant nutrients, iodine, lithium and industrial chemicals. One of the world’s biggest lithium producers, SQM’s natural resources main production facilities are located in the Atacama Desert in Tarapacá and Antofagasta regions.
On November 18, Citi analyst P.J. Juvekar lowered the price target on Sociedad Química y Minera to $112 from $123 and kept a Buy rating on the shares. According to Juvekar, lithium prices increased sequentially in Q3 and in fiscal 2023, which means that the company will likely be fully exposed to the market price. The analyst dropped the price target to reflect “near-peak earnings at continued high prices.”
At the end of Q3 2022, 34 hedge funds were bullish on Sociedad Quimica y Minera and disclosed stakes worth $713.9 million in the company. This is compared to 29 positions in the preceding quarter with stakes worth $658.6 million in the company. As of September 30, Arrowstreet Capital is the largest shareholder in the company and has stakes worth $125.2 million in the company.
2. Johnson Controls International plc (NYSE:JCI)
Number Of Hedge Fund Holders: 37
Johnson Controls International plc (NYSE:JCI) is an American Irish-domiciled multinational conglomerate that produces fire and HVAC equipment for buildings. On August 5, the company announced that it has been awarded a $299 million grant by the United States Department of Energy under the American Recovery and Reinvestment Act (ARRA) to build domestic manufacturing capacity for advanced Li-ion batteries for hybrid and electric vehicles.
At the beginning of December, Oppenheimer analyst Noah Kaye raised the firm’s price target on Johnson Controls International plc (NYSE:JCI) to $76 from $68 and maintained an Outperform rating on the shares. After meeting with CFO Olivier Leonetti at the company’s headquarters for an investor discussion that highlighted several potentially underappreciated elements of the story, the analyst stated that the company is executing significant organizational changes that could translate to sustainable outperformance on organic growth.
As per Insider Monkey’s Q3 2022 database, 37 hedge funds owned stakes in Johnson Controls International plc (NYSE:JCI), up from 33 in the preceding quarter. These stakes are collectively valued at over $1.3 billion.
Here is what Aristotle Capital Management had to say about Johnson Controls International plc (NYSE:JCI) in its Q1 2022 investor letter:
“As investors since the fourth quarter of 2017, we have enjoyed a front-row view of the large transformation that has taken place at Johnson Controls. Once a multi-industrial corporation, the company successfully turned itself into a pure-play buildings solutions and technology provider. Catalysts we previously identified for Johnson Controls included synergies following its merger with Tyco International, which provides fire safety and building security products, as well as benefits from its separation of non-building-focused businesses, such as automotive seating and batteries. With all catalysts in sight now nearing completion, and Johnson Controls now a better business for it – with higher recurring revenues and lower capital intensity – we decided to exit our investment to help fund the purchases of Xcel Energy and Atmos Energy.”
1. Albemarle Corporation (NYSE:ALB)
Number Of Hedge Fund Holders: 49
Albemarle Corporation is a specialty chemicals manufacturing company based in Charlotte, North Carolina. It operates through 3 divisions: lithium, bromine specialties and catalysts. As of 2020, Albemarle was the largest provider of lithium for electric vehicle batteries.
Earlier this November, RBC Capital analyst Arun Viswanathan raised the price target on Albemarle Corporation to $380 from $371 and maintained an Outperform rating on the shares after its Q3 earnings beat. The analyst states that he remains favorable on the stock due to a tight lithium supply-demand. However, he also remains cautious on the potential for large price swings in the lithium spot market.
On November 2, Albemarle Corporation reported earnings for the third quarter of fiscal 2022. The company generated a revenue of $2.09 billion, an increase of 151.85% on a year-over-year, and reported earnings per share of $7.50, surpassing consensus estimates by $0.51.
At the close of Q3 2022, 49 hedge funds were long Albemarle Corporation and disclosed stakes worth $621.4 million in the company. This is compared to 39 hedge funds in the previous quarter with stakes worth $600.6 million. The hedge fund sentiment for the stock is positive. As of September 30, Millennium Management is the top investor in Albemarle Corporation and has stakes worth $159.5 million in the company.
Here is what Carillon Tower Advisers had to say about Albemarle Corporation in its third-quarter 2022 investor letter:
“Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company with leading positions in lithium, bromine, and refining catalysts. The company’s shares outperformed meaningfully in the quarter, driven largely by robust demand for lithium used to manufacture electric vehicle batteries. Albemarle is well-positioned for the accelerating adoption of electric vehicles and could benefit from the Inflation Reduction Act.”
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This article is originally published at Insider Monkey.
