ASX Lithium Stocks: Top Lithium Shares to Watch in 2023
With the rise of electric vehicles, demand for lithium skyrocketed. Here are the 10 biggest ASX lithium stocks to take advantage of soaring lithium prices.
Investing in lithium stocks on the ASX
As traditional combustion engine cars are replaced by electric vehicles, the demand for lithium explodes worldwide. In 2022 alone, lithium prices soared over +124%, and with Australia holding the lion’s share of the metal’s production. While the commodity's prices have dropped by over 60% since 2023, lithium demand is still expected to be high in the next few years. ASX lithium stocks might be worth considering if you’re looking to invest in the rise of the electric vehicle using lithium-ion batteries. Dive into the Australian stocks listed below.
Key highlights:
- Demand for lithium has more than doubled from 2016, and it's expected to triple its current demand by 2025.
- The biggest growth drivers are due to the expected increase in usage of electric vehicles and e-bikes.
- Surging more than +124% in 2022 alone, lithium commodity prices might make miners be even more profitable as gross profit margins grow.
Top lithium stocks on ASX
Company Name | Ticker | Stock Price | YTD | Market Capitalisation |
|---|---|---|---|---|
Rio Tinto Limited | $120.94 | +4.77% | $44.89b | |
Pilbara Minerals Limited | $3.75 | +3.59% | $11.24 | |
Mineral Resources Limited | $79.13 | +5.35% | $15.27b | |
Allkem Limited | $11.64 | +5.43% | $7.42b | |
Liontown Resources Limited | $2.72 | +121.14% | $5.98b | |
Sayona Mining Limited | $0.20 | +5.26% | $1.70b | |
Core Lithium Ltd | $0.92 | -8.91% | $1.69b | |
De Grey Mining Limited | $1.69 | +25.19% | $2.64b | |
Lake Resources NL | $0.46 | -39.47% | $654m | |
Leo Lithium Limited | $0.54 | +10.20% | $527m |
Data as of 14 April 2023
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Discover the top 10 lithium stocks on the ASX
1. Rio Tinto Limited ($RIO)
Market Capitalisation: $44.89b
Stock price (as of 14/04/2023): $120.94
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 56% / 44%
The second-biggest mining company in the world, Rio Tinto has lithium mining facilities both in California and Serbia, which is expected be able to produce over 63,000 tons of lithium every year. Despite lithium not being one of the company’s core products, RIO might be a good call for those who want to get some exposure to the metal, while also gaining exposure to other minerals.
2. Pilbara Minerals Limited ($PLS)
Market Capitalisation: $11.24b
Stock price (as of 14/04/2023): $3.75
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 66% / 34%
Australia’s biggest lithium miner, Pilbara Minerals owns the Pilgangoora Project in Western Australia, which has an estimated mine life of 26 years and a maximum production capacity of 580,000 tonnes per annum. Being a globally significant lithium producer, the rise of this commodity has sent the PLS share price upwards, soaring 30.6% in the last 12 months.
3. Mineral Resources Limited ($MIN)
Market Capitalisation: $15.27b
Stock price (as of 14/04/2023): $79.13
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 64% / 36%
With two hard rock lithium mines located in Western Australia, Mineral Resources (MIN) is one of the world’s largest holders of hard rock lithium reserves. By the end of 2022, their two mines combined are expected to be able to produce over 1.5m tonnes for their lithium projects. Even though lithium makes up for a big share of the company’s revenue, Mineral Resources also produces iron ore, natural gas and has a corporate shared mining service, allowing it to have some B2B customers.
4. Allkem Limited ($AKE)
Market Capitalisation: $7.42
Stock price (as of 14/04/2023): $11.64
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 64% / 36%
The biggest lithium pure-play company in the ASX, Allkem delivers end-to-end solutions for all lithium needs. The company has a hard-rock lithium operation in Canada and Australia, a lithium brine project in Argentina and a lithium hydroxide conversion facility in Japan, holding more than 10% of the world’s lithium production. With record revenues and net profits climbing 13-fold from FY2021 to FY2022, investors have also taken note, with AKE's share price advancing over 150% from 2021 to present.
5. Liontown Resources Limited ($LTR)
Market Capitalisation: $5.98b
Stock price (as of 14/04/2023): $2.72
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 66% / 34%
Still preoperational, Liontown Resources holds two lithium reserves in Western Australia, in the Kathleen Valley and Buldania. By 2024, the company expects to be able to produce over 500,000 tons of lithium per year, just in time for what Liontown forecasts will be when the lithium deficit worldwide will be hitting new highs. Since it’s still preoperational and thus considered somewhat risky by investors, the LTR stock price is up only a meager +5.00% in 2022, despite the lithium market rallying during the year.
6. Sayona Mining Limited ($SYA)
Market Capitalisation: $1.70b
Stock price (as of 14/04/2023): $0.20
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 56% / 44%
With mining facilities in Quebec and in Western Australia, Sayona Mining aims to become one of the leading players in the North American lithium market, as it now holds the region’s biggest lithium reserves. In Australia, its mining sites go beyond mining just lithium deposits, focusing also on gold production. Its yearly lithium production is over 160,000 tons, which helped Sayona’s stock price climb over 2000% in the last two years.
🆚 Compare SYA vs CXO→
7. Core Lithium Ltd ($CXO)
Market Capitalisation: $1.69b
Stock price (as of 14/04/2023): $0.92
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 68% / 32%
This year’s biggest gainer in the lithium industry, Core Lithium strives to become one of Australia’s leading lithium producers through its Finniss project in the Northern Territory. While still pre-operational before 2023, the company's management aims to begin production by this year – expecting to produce over 15 million tonnes of lithium. Don’t be fooled by the company’s name though: Core Lithium is not just a lithium company but also has stakes in other rare earths such as uranium, with one mine in South Australia and another one in the Northern Territory. After a strong rally since 2021, CXO share price has been down 38% in the last 12 months.
💡Related: ASX Uranium Stocks: Top Uranium Shares to Watch→
8. De Grey Mining Limited ($DEG)
Market Capitalisation: $2.64b
Stock price (as of 14/04/2023): $1.69
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 58% / 42% Another lithium and gold mining company, De Grey is another pre-operational mining company, holding reserves in West Australia. Once live, their mines is expected to produce over 15 tons of gold yearly. Despite being focused on gold production, the company has also confirmed through some drilling tests that its reserves also hold substantial quantities of high-grade lithium. Being more exposed to gold prices than lithium prices, De Grey Mining shares have grown strongly at almost 20% YTD, compared to the other lithium miners on this list.
9. Lake Resources NL ($LKE)
Market Capitalisation: $654m
Stock price (as of 14/04/2023): $0.46
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 65% / 35%
Similar to the previous two, Lake Resources is another pre-operational lithium mining company. Its mining facilities are located in the lithium triangle in South America, where 40% of the global lithium production is made and production tends to be cheaper than anywhere else in the world. All of their assets are located within Argentinian boundaries and are estimated to contain over 4.4Mt of high quality lithium. The company also strives to be one of the cleanest mining companies in the planet, trying to work according to ESG standards.
Lake Resources has garnered much attention recently after finally producing lithium carbonate through sustainable methods – a feat that they claim they are the first to do. Despite that however, LKE's share price has been severely battered in the past year, down over 76%.
🆚 Compare CXO vs LKE→
10. Leo Lithium Limited ($LLL)
Market Capitalisation: $527m
Stock price (as of 14/04/2023): $0.54
Stake Platform Bought / Sold (1 Jan 2023 - 31 March 2023): 66% / 34%
Leo Lithium (LLL) is the newest company in this list, being founded only in 2019 and publicly-listing only last June 2022. While its office is based in Western Australia, its biggest project called the Goulamina Lithium project is based in Mali, Africa. Presently, Leo Lithium is still a pre-production stage, mainly working on construction in its project in order to commence operations. Despite that, investors may be surprised to see that the company recorded revenues last year – however, this was just a paper gain after its project had a fair value adjustment upwards.
Leo Lithium has ralled 10% YTD so far, however early investors who bought in at IPO would be at a loss, given that LLL IPO'd at $0.70.
How to invest in lithium in Australia?
The main way of investing in lithium is through lithium mining companies listed in Australia, an alternative way includes investing in a lithium exchange-traded fund.
- Open a stock investing account: To invest in lithium stocks and ETFs, you'll need to sign up to a broker with access to the ASX and Cboe Australia. Lucky for you Stake has access to both stock exchanges.
- Fund your account: Complete an application with your personal and financial details. Fund your brokerage account with a bank transfer, debit card or even Apple/Google pay.
- Search for lithium shares or ETFs: Find the asset by searching for the name or ticker symbol. Do your own research to ensure it is the right investment product for your own circumstances.
- Choose an order type and buy the asset: Buy on any trading day with a market order or use a limit order to delay your purchase of the shares until it reaches your desired stock price. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.
- Monitor your investment: Optimise your portfolio by tracking how the security performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your shares.
Lithium stocks FAQs
Who is the biggest lithium producer in Australia
Pilbara Minerals (PLS) is by far the biggest lithium mining company in Australia. Owning the world’s largest hard-rock lithium operations, Pilbara produces over 377,000 metric tons of lithium every year. If you are interested in Pilbara Minerals and the lithium industry, compare the stock against some other players in the sector: PLS vs CXO and PLS vs MIN.
Is lithium a good long-term investment?
As demand for batteries continues to rise worldwide, lithium prices are expected to follow along. However, investors should keep in mind that like any other metal, new reserves can be discovered and explored, potentially making the commodity’s price collapse.
What are some good lithium ETFs to invest in?
Despite being a growing market with plenty of lithium stock to choose from, there aren’t many lithium ETFs available yet. If looking for a fund, investors can only opt for the Global X Battery Tech & Lithium ETF (ACDC). Find out more about other Australian ETFs.
This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing.
Megan is a markets analyst at Stake, with 7 years of experience in the world of investing and a Master’s degree in Business and Economics from The University of Sydney Business School. Megan has extensive knowledge of the UK markets, working as an analyst at ARCH Emerging Markets - a UK investment advisory platform focused on private equity. Previously she also worked as an analyst at Australian robo advisor Stockspot, where she researched ASX listed equities and helped construct the company's portfolios.
