The 7 Most Undervalued Lithium Stocks to Buy Now: July 2023

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  • Here are seven of the top most undervalued lithium stocks to buy now.
  • Lithium Americas (LAC): The company is working with General Motors at Thacker Pass.
  • Ganfeng Lithium (GNENF): It’s well positioned to supply Chinese based EV companies.
  • American Lithium (AMLI): It’s working with the sixth-largest lithium deposit in the world.
Undervalued lithium stocks - The 7 Most Undervalued Lithium Stocks to Buy Now: July 2023

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While there’s certainly been increased interest recently, there still are plenty of undervalued lithium stocks out there.

We know millions of electric vehicles around the world will need supply, and that there simply isn’t enough. We’ll see higher prices for lithium, which will lead to higher stock prices for lithium stocks, especially those still considered undervalued lithium stocks.

The good news is it’ll also create big opportunity for some of the most undervalued lithium stocks.

Lithium Americas (LAC)

smartphone with logo of Canadian company Lithium Americas Corp on screen
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Every time I talk about undervalued lithium stocks, Lithium Americas (NYSE:LAC) is one of the first on my list.

For one, it’s still undervalued, as it goes after lithium at its Thacker Pass mine with General Motors. Two, the company should start making lithium deliveries by 2026, which should pull in a good deal of revenue.

The company just announced its Caucharí-Olaroz project just produced its first lower-than-battery-quality lithium carbonate as part of commissioning.

In addition, as we’ve mentioned before, Lithium Americas just completed the acquisition of Arena, which owned 65% of the Sal de la Puna project. 

 Ganfeng Lithium (GNENF)

Person holding mobile phone with logo of Chinese company Jiangxi Ganfeng Lithium Co. Ltd. (GNENF) on screen in front of web page. Focus on phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

At $6.50, Ganfeng Lithium (OTCMKTS:GNENF) is China’s largest producer of base materials for lithium battery manufacturing.

It’s also well-positioned to supply Chinese based EV manufacturers, and some in the U.S., including Tesla. Yet, it only trades at a fraction of growth, with a PEG ratio of 0.17.

The company is investing nearly $360 million in the Chinese city of Xiangyang to build a new lithium battery project. It’s also investing about $130 million into an Argentinian subsidiary to develop a lithium mine.

With expansion on the horizon, this is a lithium stock to consider.

American Lithium (AMLI)

a pile of lithium
Source: Bjoern Wylezich/ShutterStock.com

At just $2 a share, American Lithium (NASDAQ:AMLI) is one of the cheapest lithium stocks on the market, with a good deal of potential.

The company has two interesting lithium projects. One is the TLC Lithium Project, located near Tonopah, Nevada. The other is the Falchani Lithium Project located in Peru, which represents the sixth-largest lithium deposit in the world.

It also just invested in Surge Battery Metals. CEO Simon Clarke says the investment will allow for the “continued exploration and development of the Nevada North Lithium Project, a claystone project which we believe is highly prospective with the potential to be a large-scale, high-grade deposit.”

Piedmont Lithium (PLL)

Person holding cellphone with logo of US mining company Piedmont Lithium Inc. (PLL) on screen in front of business webpage. Focus on phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

At $57.71, Piedmont Lithium (NASDAQ:PLL) is also undervalued, with powerful catalysts ahead.

It’s trying to advance its mine in North Carolina, which could become one of North America’s biggest sources of lithium for EV batteries.

Also, after receiving a $141.7 million grant from the U.S. government to help, North Carolina regulators are asking for additional information in its review process. Analysts seem to like the PLL stock here, too.

DA Davidson, for example, recently raised its price target to $96 from $90. Even Roth MKM recently raised its target price to $190 from $150.

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screen
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Albemarle (NYSE:ALB) last traded at $223.09, and is still cheap. I mentioned it again as a hot buy at $195.54.

Two days later, ALB jumped to $218.82. Now, it’s up to $239. From here, I’d like to see it at $250. UBS analysts just upgraded the stock to a buy rating, with a price target of $225.

Even Benchmark just said ALB is the best “growth opportunity.” All with ALB sales expected to grow about 12% a year between now and 2025. KeyBanc analysts also raised their price target on ALB to $291 from $270 a share. Even Citi analysts just initiated a buy rating on ALB. ALB CEO Kent Masters just bought 5,470 shares for an average price of $181.64 for just under $1 million. He now holds more than 51,000 shares of Albemarle stock worth nearly $10 million.

Global X Lithium & Battery Tech ETF (LIT)

rows of lithium ion batteries
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Or, look at the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT). The last time I spoke about this ETF, it traded at around $62.93.

It’s now up to $67.70, and set to race higher on the heels of the lithium boom, too. From here, with patience, I’d like to see it race back to $73.

With an expense ratio of 0.75%, the ETF invests in the complete lithium cycle. Everything from mining and refining the metal through battery production.

Sprott Lithium Miners ETF (LITP)

a lithium mine, ATLX stock
Source: Shutterstock

Or, we can look at ETFs, such as the Sprott Lithium Miners ETF (NASDAQ:LITP), which is the only pure-play listed ETF focused on lithium mining, according to SprottETFs.com.

The low-volume ETF has an expense ratio of 0.65%. Since March, the ETF exploded from about $15 to $18.90 so far. From here, I’d like to see it initially retest prior resistance at $20.50 before heading higher.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2023/07/the-7-most-undervalued-lithium-stocks-to-buy-now-july-2023/.

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