The electric vehicle (EV) market is experiencing a significant surge in growth. The International Energy Agency reported that approximately 20% of new car sales in 2023 were electric. In the first quarter alone, more than 2.3 million EVs were sold. This achievement represented a 25% increase compared to the previous year. I think that lithium penny stocks will be the best way for investors to navigate this tailwind.

Furthermore, the demand for lithium currently outpaces the supply, and this trend is expected to continue through 2030.

The great thing about buying these lithium penny stocks is that some of them are in the pre-production stages. The pre-production stages implie they have very low valuations and great room to explode in value.

So here are three lithium penny stocks for investors to consider adding to their portfolios in April this year. Don’t miss out on these opportunities to grow your portfolio.

Piedmont Lithium (PLL)

Piedmont Lithium (NASDAQ:PLL) focuses on the exploration and development of lithium resources in North Carolina. The company aims to supply lithium hydroxide and other chemicals to the electric vehicle and battery storage markets.

PLL reported a significant financial milestone by recording its first profit in Q3 2023. The company earned $47.1 million in revenue from sales of 29,011 dry metric tons (dmt) of lithium concentrate​ .

PLL has started a cost-saving initiative expected to save about $10 million annually. The plan involves a reduction of its workforce by 27% mainly in corporate offices​. For its ongoing projects, PLL aims to complete key capital projects that will lower operating costs. One example is the crushed ore storage dome, which is expected to be finished by mid-2024.

Furthermore, the company is a great bargain in my opinion. The Chinese market has great sway over lithium prices, and is currently in a cyclical downswing. I expect that the market will soon revert to its average production as the Chinese market improves. This means companies like PLL could be comparatively undervalued to their long-term potential.

Arcadium Lithium (ALTM)

Arcadium Lithium (NYSE:ALTM) produces lithium for use in a wide range of lithium products used in batteries for electric vehicles and mobile phones.

LTHM anticipates significant growth in its lithium production. The company expects to increase lithium carbonate and hydroxide delivery volumes by approximately 40%, aiming to reach 50,000 to 54,000 metric tons.

Arcadium Lithium anticipates $450 to $625 million in growth capital expenditures for 2024, with an additional $100 to $125 million allocated for maintenance capital spending.

Meanwhile, the third-quarter revenue was $211.4 million, marking a decrease from previous quarters and the same period in 2022. Despite the dip in revenue, the adjusted EBITDA for the quarter increased by 8% year-over-year to $119.7 million.

This makes it one of those lithium penny stocks to consider, and potentially a strong diversifier if one seeks strong gains in the markets due to its market cap of 4.23 billion.

Standard Lithium (SLI)

Standard Lithium (NYSEAMERICAN:SLI) is pioneering the modernization of lithium extraction techniques and is a strong pick in its own right.

SLI has successfully commissioned and validated the performance of the largest continuously-operating Direct Lithium Extraction (DLE) equipment in North America.

The DLE column is currently extracting lithium from Smackover Formation brine at an input flow rate of 90 gallons per minute (20.4 m3/hr), achieving an average lithium recovery of 97.3% and rejecting over 99% of key contaminants

The company’s signature projects, the Phase 1A Project and the South West Arkansas Project, are located on the Smackover Formation in southern Arkansas, with additional prospective lithium brine project areas identified in East Texas

I think that the best has yet to come for SLI given this development. It has shown progress in modernizing its extraction techniques that will give it a significant competitive advantage moving forward.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

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.