The competition within the lithium sector is increasing as EVs become increasingly popular, leading the sector to see substantial growth. These companies are attempting to see business and financial development, as well as doing their utmost to contribute to sustainability. Here are three top performing lithium stocks to consider adding to your portfolio.

Albemarle (ALB)

Albemarle (NYSE:ALB) is a leader in the lithium industry, a promising and currently undervalued sector. It is dedicated to mining and producing essential elements for industries such as mobility, energy, connectivity and healthcare.

In recent financial news, the company reported impressive results, with net sales up 10% to $2.3 billion. In addition, the report showed net income of $302.5 million, equivalent to $2.57 per diluted share. Albemarle’s adjusted diluted earnings per share was $2.74, with adjusted EBITDA of $453.3 million.

The company has taken significant strategic steps to position itself for future growth. It has collaborated with Caterpillar (NYSE:CAT) to advance sustainable mining operations and the circular battery value chain. Additionally, Albemarle received a $90 million award from the Department of Defense to restart its Kings Mountain, NC mine.

A recent transaction to simplify the joint venture with Mineral Resources (OTCMKTS:MALRF) gave Albemarle 100% ownership of an Australian lithium hydroxide facility. 2023 is expecting a net sales increase of at least 30% YoY, while the adjusted EBITDA is expected to flatten down slightly.

The company’s quarterly dividend of $0.40 per share represents a $1.60 annual yield to be paid in January 2024.

Livent (LTHM)

Livent (NYSE:LTHM) specializes in the production of lithium, a crucial resource for electric mobility, renewable energy and connectivity.

Despite Q3 having slightly lower revenues, the company reported solid financial results. A net income of $87.4 million and adjusted EBITDA of $119.7 million demonstrates its growth potential.

A fire at its North Carolina plant did not prevent Livent from returning to operations, a testament to its resilience. Fortunately, there were no injuries or significant environmental damage.

Demand for lithium is backed by long-term deals with giants such as Ford (NYSE:F), which plans to purchase up to 13,000 tons of lithium hydroxide per year. This underscores the importance of lithium in the automotive industry and promises a bright future for companies like Livent.

Sigma Lithium (SGML)

Sigma Lithium (NASDAQ:SGML) is making waves as one of the top performing lithium stocks. Its goal is to produce high-quality lithium concentrate, a vital component for electric vehicles of the future. What sets Sigma Lithium apart is its commitment to environmentally responsible sourcing, making it a sustainable option for the rapidly expanding EV market.

Its recent developments are getting people talking. Sigma Lithium’s Phase 4 Exploration Program has yielded fantastic results. It projects an impressive 110 million metric tons in total mineral resources, placing the company among the world’s lithium giants. But it’s not stopping there. Sigma Lithium is preparing for Phase 5 with an Accelerated Plan, looking to further exploit the resource potential by exploring old artisanal mines and numerous pegmatites within its mining concessions.

Adding to the corporation’s success, it has signed a prepayment agreement for Glencore’s (OTCMKTS:GLNCY) Triple Zero lithium. Sigma Lithium intends to utilize Triple Zero Lithium to create a green lithium supply chain for electric vehicles, given the product’s low carbon footprint. Additionally, Sigma Lithium intends to use dry stacked tailings, non-hazardous processing and renewable energy to minimize its ecological impact.

Its strong commitment to sustainability, coupled with its remarkable exploration results, make it an outstanding choice for investors seeking top performing lithium stocks. Adding Sigma Lithium to your investment portfolio could benefit both your financial goals and your green values.

As of this writing, Gabriel Osorio-Mazzilli did not hold (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