SPECIAL REPORT The Top 7 Stocks for 2024

The Lithium Rush: 3 Stocks Powering the Battery Revolution


  • There’s a buy case to make for each of the lithium stocks below.
  • Livent Corporation (LTHM): Received approval for its longstanding merger, and its share price may not fully reflect this development.
  • Piedmont Lithium (PLL): Working to establish the largest lithium mine in North America that could be located in North Carolina.
  • American Lithium (LIACF): This company is a lithium mining junior and shows strong short-term price movements.
lithium stocks - The Lithium Rush: 3 Stocks Powering the Battery Revolution

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Whether you are a bull on the world’s transition to electric vehicles or not, lithium stocks are expected to rise in value significantly over the next few decades. These companies produce crucial elements to keep our electronics powered; thus, lithium’s spot price is expected to rise in step.

I’ve researched three lesser-known companies for investors to consider. These stocks have smaller market caps than the industry leaders but potentially have more in store for investors regarding capital appreciation.

Here are three of the best lithium stocks to consider adding to your portfolio in December.

Livent Corporation (LTHM)

Livent Corporation logo on a phone screen. LTHM stock.
Source: Ralf Liebhold / Shutterstock

Livent Corporation (NYSE:LTHM) specializes in lithium technology, including lithium production for electric vehicle batteries and energy storage.

Now might be a good time to consider investing in LTHM while there’s still time. The company recently received regulatory approval to merge with its long-standing partner, Allkem (OTCMKTS:AKE).

The merger is expected to realize synergy between the companies and complement each other’s strengths and weaknesses. Furthermore, it’s also possible that the merger has not yet been fully priced into LTHM’s share price, thus leaving upside for market participants.

However, this potential for gains also comes with a proportionate downside risk. LTHM has underperformed the S&P 500 this year and has experienced substantial downgrades for its revenue forecasts. 

Still, LTHM might be their winning ticket for investors with a high-risk tolerance.

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

Piedmont Lithium (NASDAQ:PLL) has significant investments in spodumene deposits—a key source of lithium. This relatively lesser-known company is working toward establishing an integrated business in North America. This is unusual, as most lithium explorers base their operations in Australia and Latin America.

There are two good reasons to consider PLL as one of those lithium stocks to add to your portfolio. Namely, the company received an extension from North Carolina regulators to provide additional information needed for the state’s review of the company’s mine permit application.

This extension is significant as PLL seeks to establish this mine, which is expected to be one of North America’s largest sources of lithium for electric vehicle batteries. This may become a significant tailwind for the company.

PLL also announced its quarterly results for the third quarter of 2023, which management described as “transformational.” The company made its first two shipments of spodumene concentrate during the quarter. This is part of its pivot from being a lithium explorer to a developer and supplier. Piedmont also achieved strong gross margins and positive earnings per share.

 PLL looks to be one of those enticing lithium stocks that investors should keep on their radars.

American Lithium (LIACF)

a lithium mine, ATLX stock
Source: Shutterstock

American Lithium (OTCMKTS:LIACF) is a junior mining company focusing on exploring and developing lithium deposits.

This company made my list due to its ongoing projects in the Americas region. It focuses on the TLC lithium project in Nevada and the Falchani lithium and Macusani uranium development-stage projects in Peru. The company is studying the feasibility of these sites.

However, it’s also important to note that LIACF’s GAAP EPS of -C$0.05 should be a concern on the downside. 

For investors interested in making LIACF into a short-term momentum trade, there’s some potential there, too. Thanks to its strong price momentum, LIACF is rated as a “Strong Buy” according to Barchart’s technical indicators.

This means investors could profit from its short and long-term price movements if their trades move in their favor.

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

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

Article printed from InvestorPlace Media, https://investorplace.com/2023/12/the-lithium-rush-3-stocks-powering-the-battery-revolution/.

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