SPECIAL REPORT The Top 7 Stocks for 2024

7 Millionaire-Maker Lithium Stocks to Buy Before the Window Closes

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  • These best lithium stocks offer tremendous long-term upside ahead with the rapid expansion of the EV sphere
  • Lithium Americas (LAC): A strategic bifurcation of its North American and Argentine operations could unlock significant long-term value.
  • American Lithium (AMLI): With its recent acquisition, AMLI represents an attractive entry point into the lithium market.
  • Piedmont Lithium (PLL): With high-quality assets PLL is set for robust cash flow expansion.
  • Albemarle Corporation (ALB): ALB’s strategic alliance with Ford makes for an intriguing prospect.
  • Standard Lithium (SLI): Boasting the discovery of the “highest grade brine, “SLI is poised for massive growth.
  • Sociedad Química y Minera de Chile S.A. (SQM): SQM’s robust demand and recent supply deals suggest a bullish trajectory.
  • Global X Lithium & Battery Tech ETF (LIT): LIT offers a low-risk opportunity to invest in the lithium revolution.
Best Lithium Stocks - 7 Millionaire-Maker Lithium Stocks to Buy Before the Window Closes

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As the green revolution speeds up, the best lithium stocks have emerged as key players in this transformative era. Despite some institutions arguing that lithium supply might outweigh demand, the reality paints a remarkably different picture.

Lithium producers have warned that global supplies might not be able to meet the burgeoning demand from the electric vehicle sector.

These high-potential lithium stocks, referred to as millionaire maker lithium stocks, are becoming increasingly relevant for savvy investors.

As the EV market expands, these top lithium stocks effectively distinguish themselves, transforming into major assets for investors seeking high returns. Given lithium’s diverse applications across various industries, it’s poised to witness a massive surge in demand.

Hence, if you’re looking to invest in this booming sector, it might be the most opportune time to explore the lithium stocks to buy.

Lithium Americas (LAC)

Lithium element on the periodic table. Undervalued Lithium Stocks
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Lithium Americas (NYSE:LAC) is a tempting prospect for investors looking to pounce on the burgeoning lithium demand fueled by the electric vehicle revolution.

Despite being a pre-revenue business, its massive potential is hard to ignore, which is why the stock is up over 230% over the past three years.

In a strategic move, the company’s board greenlit a plan to bifurcate its North American and Argentine operations into two separate entities, a decision that could potentially unlock significant long-term value for investors.

The North American operations are centered on the Thacker Pass project in Nevada, a lithium resource boasting an impressive after-tax net present value of a whopping $5 billion.

With General Motors (NYSE:GMinvesting $650 million in the Thacker Pass project and a binding supply agreement in place, Lithium Americas’ future cash flows look incredibly promising over the long term.

As the project gears up to commence production in the second half of 2026, it’s set to generate colossal cash flows, solidifying its potential in its niche.

American Lithium (AMLI)

a lithium mine, ATLX stock
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American Lithium (NASDAQ:AMLI) trading at a modest stock price of under $2 per share, presents an intriguing investment opportunity in the lithium market.

The firm is making massive strides with two major lithium projects: the TLC Lithium Project in Nevada and the Falchani Lithium Project in Peru. This powerful lithium deposit ranks as the sixth-largest globally.

Adding to its allure, the firm recently acquired a 9.7% stake in Surge Battery Metals. This investment and its recent milestone in securing drilling permits near Quelcaya signal a promising long-term trajectory.

With the backing of Peru’s new government and exploration prospects in the Macusani Plateau, American Lithium offers an attractive entry point into the growing lithium market.

Piedmont Lithium (PLL)

a pile of lithium
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Piedmont Lithium (NASDAQ:PLL) is another long-term prospect in the lithium market. The company is advancing its mine in North Carolina, potentially becoming one of North America’s biggest lithium sources for EV batteries.

Once the project is up and running, it could yield approximately 30,000 metric tonnes of lithium hydroxide annually, with construction set to begin next year.

Besides its North Carolina project, Piedmont is planning a massive lithium hydroxide production facility in Tennessee. This facility could match the North Carolina mine’s output, doubling the current lithium hydroxide production in the U.S.

Also, with 100% ownership in its Tennessee and Carolina projects, Piedmont boasts quality assets with a combined after-tax net present value of $4.5 billion. Piedmont is poised for robust cash flow visibility as these assets move toward commercial production.

Albemarle Corporation (ALB)

Albemarle (ALB) logo on a mobile phone screen
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Albemarle Corporation (NYSE:ALB) is a leading specialty chemicals manufacturer, one of the biggest lithium producers globally, positioned remarkably well to capitalize on the flourishing demand for lithium-ion batteries powering EVs.

With lithium supply struggling to meet the swelling demand, Albemarle’s strategic position in the market is undeniable.

The company’s first-quarter results showcased a 129% year-over-year revenue bump to $2.6 billion. While slightly missing estimates, it marked the third consecutive quarter of triple-digit sales expansion.

Net income grew by a whopping 389% to $1.2 billion, with adjusted earnings per share (EPS) of $10.32 surpassing estimates by $3.26.

Further bolstering its prospects, the firm announced a major deal with Ford (NYSE:F) in May.

Starting in 2026, Albemarle will supply over 100,000 metric tons of battery-grade lithium hydroxide for approximately 3M future Ford electric vehicle batteries, a contract set to expire in 2031.

Standard Lithium (SLI)

Standard Lithium logo or icon on website page, Illustrative Editorial
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Standard Lithium’s (NYSEMKT:SLI) discovery of the “highest grade brine” in Arkansas and Exxon Mobil’s acquisition of nearby drilling rights and plans for a large-scale lithium processing facility paints a promising picture for the lithium producer.

This proximity will likely pave the way for strategic partnerships, collective infrastructure, and heightened investor interest, which bodes remarkably well for SLI stock over the long term.

Standard Lithium CEO Robert Mintak has likened the Smackover formation in Southern Arkansas, where both Exxon and Standard Lithium operate, to the significance of the Permian Basin for U.S. oil output.

He believes the economics will be superior and the resource will last longer, underscoring the massive long-term potential of this region for domestic lithium production. This development could be a game-changer for Standard Lithium and the broader lithium market.

Sociedad Química y Minera de Chile S.A. (SQM)

Sociedad Quimica y Minera logo displayed on a mobile phone with the company's web page on it. SQM stock
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Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is one of the world’s largest lithium miners, making waves in the burgeoning lithium market.

Benefiting from Chile’s favorable lithium market conditions and policies, SQM has been on an impressive growth trajectory. Revenue and EBITDA growth on a year-over-year basis stands at a remarkable 151% and 173%, respectively. Moreover, forward sales estimates point to an amazing 46%.

Recently, SQM inked a long-term lithium supply deal with Ford, mirroring a similar agreement by Albemarle.

SQM secured a five-year deal to supply over 100,000 metric tons of lithium carbonate and lithium hydroxide to South Korea’s LG Energy through 2029.

These agreements underscore the robust demand for SQM’s products. With the potential for more such deals on the horizon, SQM stands out as enticing long-term lithium stocks to load up on.

Global X Lithium & Battery Tech ETF (LIT)

Graphic of Lithium scientific symbol (Li) in the shape of a big white gear with construction equipment and mountain around it
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Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) is arguably the best low-risk way to play the lithium revolution.

Several lithium stocks might become bigger players in the not-so-distant future. Hence, in wagering on LIT stock, investors can effectively place their bets on various lithium and EV stocks.

Hence, with an expense ratio of just 0.75%, the ETF has holdings in the complete lithium cycle which includes everything from mining and refining the metal through battery production.

It has almost 50 holdings, and some of its top holdings include TDK Corp. (OTCMKTS:TTDKY),  BYD Co. (OTCMKTS:BYDDF), Panasonic (OTCMKTS:PCRFY), Tesla (NASDAQ:TSLA), and others.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/07/7-millionaire-maker-lithium-stocks-to-buy-before-the-window-closes/.

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