With the world going green, we need as much lithium as possible. Unfortunately, there may not be enough of it to go around, creating opportunities for cheap lithium stocks. In fact, that’s what Stellantis CEO Carlos Tavares just said: “We know that we need lithium. We know that we are not producing as much as we need. We have right now 1.3 billion cars (that are) internal combustion engines powered on the planet. We need to replace that with clean mobility. That will need a lot of lithium. Not only the lithium may not be enough, but the concentration of the mining of lithium may create other geopolitical issues,” he said, as quoted by The Detroit News.
It’s why automakers like Ford (NYSE:F), Tesla (NASDAQ:TSLA), and General Motors (NYSE:GM) are racing to put together lithium deals to secure supply. That’s because even they know supply may not meet surging demand, especially when the world wants to put millions of electric vehicles on the roads.
That being said, here are seven cheap lithium stocks to consider now.
Cheap Lithium Stocks: Albemarle (ALB)
The last time I spoke about the industry’s 800 lb. gorilla Albemarle (NYSE:ALB), it traded at $180 on May 5. It would test $220 shortly after. Now, at $195.54, I strongly believe the stock could see another strong rebound on a tight lithium supply story. Better, as we wait for ALB to recover, we can collect its current 0.82% yield.
Helping, the ALB stock was just upgraded to a buy rating at UBS, with a price target of $225. According to UBS, the pullback creates a good entry point. Analysts at Baird also upgraded the ALB stock to a buy rating from hold, with a price target of $288 from $222. That’s because lithium demand isn’t showing any clear signs of slowing down.
Even better, Albemarle just announced a definitive agreement with Ford to deliver battery-grade lithium, which could lead to the development of about three million Ford EV batteries. Granted, Albemarle did lower its outlook for revenue and profitability this year on the heels of softer lithium prices, but even that’s showing signs of improvement. In fact, the company still expects to post respectable growth for the year, as demand for lithium – especially for electric vehicles– remains strong.
Livent Corp. (LTHM)
I last weighed in on Livent Corp. (NYSE:LTHM) on May 5. At the time, the lithium stock traded at just $22.75. It would run to $25.86 shortly after and head south with the market. However, don’t write it off just yet. It could bounce back here after finding strong support for around $23.46.
Better, the company is producing solid numbers. In fact, it just posted an EPS of 60 cents on $235.5 million in sales. The Street was only looking for 39 cents in earnings on sales of $230.2 million. Even better, LTHM raised its full-year guidance. It now expects its EBITDA to fall between $530 million and $600 million. That’s well above prior EBITDA guidance for $510 million to $530 million.
Analysts love the LTHM stock, too. KeyBanc, for example, just upgraded the stock to a buy rating from hold, with a $30 price target. Part of the reason for that is news lithium inventories in China– at the battery cell / EV OEM level — are starting to decline, as noted by Barron’s.
Even better, Livent and Allkem Ltd. will combine in an all-stock $10.6 billion deal by year-end. Under the deal, Livent shareholders will receive 2.406 shares in the combined firm for each share.
Lithium Americas (LAC)
Another top lithium stock to own is Lithium Americas (NYSE:LAC). I also highlighted LAC on May 5, as it traded at $19.50 before it ran to about $23 a share. Now back to $20.05, it’s also starting to pivot higher. Eventually, LAC could see higher highs. All thanks to its Thacker Pass lithium project, where construction just started.
Better, the company just received a $650 million investment from General Motors to accelerate the project’s development. Lithium Americas is expected to make its first delivery in the second half of 2026, at which point the profits should roll in.
Even better, Lithium Americas will soon split in two, which includes its North American and Argentinian business units. Lithium Argentina, for example, will focus on the company’s 44.8% interest in Caucharí-Olaroz, its 100%-owned Pastos Grandes project, and its interest in the Sal de la Puna. Meanwhile, Lithium Americas will focus on its Thacker Pass lithium project in Humboldt County, Nevada.
Amplify Lithium & Battery Technology ETF (BATT)
The Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT) was another hot lithium opportunity mentioned on May 5. At the time, BATT traded at $12.25 and ran to $12.63. Now at $12.20, it’s at support dating back to March. I’d like to see BATT eventually test $13 a share.
With an expense ratio of 0.59%, the BATT ETF provides exposure to global companies deriving material revenue from developing, producing, and using lithium battery technology.
Global X Lithium & Battery Tech ETF (LIT)
Or, look at the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT), which traded at $60 on May 5. While it would test $64, it has since pulled back to support at $61.30. From here, I’d like to see it retest $64 again.
With an expense ratio of 0.75%, the LIT ETF invests in the complete lithium cycle. Everything from mining and refining the metal through battery production. Some of its top holdings include Albemarle, TDK Corp. (OTCMKTS:TTDKY), BYD Co. (OTCMKTS:BYDDF), Tesla, Livent Corp., Piedmont Lithium (NASDAQ:PLL), and Standard Lithium (NYSEMKT:SLI).
American Lithium (AMLI)
American Lithium Corp. (NASDAQ:AMLI) is another hot opportunity in the lithium space. Remember, with global leaders phasing out combustion engine cars for electric vehicles, we’re running short on key metals like lithium. Accordingly, prices are only set to soar with supply-demand issues likely to continue. Even better, the company just received the first of three permits from Peruvian authorities for drilling near Quelcaya, with drilling expected to start immediately.
Even better, according to Simon Clarke, CEO of American Lithium, “This is a very significant development for the Company which validates recent supportive comments from the new government in Peru and enables us to target the discovery of new lithium mineralization on some of the best previously identified targets on the Macusani Plateau.”
Sociedad Quimica y Minera (SQM)
Or, take a look at Sociedad Quimica y Minera (NYSE:SQM). After running from about $61 to $75, it dropped to $66.17, where it started to pivot higher. From here, I’d like to see SQM again test $75. Even better, as we wait for SQM to recover, we can collect its yield of 16.89% at the moment.
SQM also just announced a long-term strategic agreement with Ford to secure the supply of high-quality lithium products for the production of electric vehicles. Plus, as noted by InvestorPlace contributor Muslim Farooque, “SQM’s financial performance has been nothing short of spectacular, with revenues rocketing from 386% over the past decade to an astounding $10.7 billion last year. This meteoric rise is because of robust growth in lithium sales.”
Plus, with lithium demand very likely to increase, Chilean companies like SQM are in the hotspot. After all, the region has the world’s biggest proven lithium reserves, second to Australia.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.