ASX Lithium stocks November 2024

Lithium is one of the key ingredients used to power the modern world. Whether it's rechargeable batteries for phones, electric vehicles or grid storage, chances are it contains some sort of lithium.

The good news for local investors is that Australia is one of the world's biggest lithium producers and therefore home to a number of lithium stocks that trade on the Australian Securities Exchange (ASX).

What are the best ASX lithium stocks?

These are the 5 best-performing Australian lithium stocks over the last 12 months¹:

1. AZURE Minerals Ltd (ASX: AZS) - 653.06%
2. Lithium Power International Ltd (ASX: LPI) - 109.26%
3. Vulcan Energy Resources Ltd (ASX: VUL) - 82.58%
4. Ioneer Ltd (ASX: INR) 23.08%
5. Ge Grey Mining Ltd (ASX: DEG) - 17.92%

This data was last updated on 15 October 2024.

What are lithium stocks?

Lithium stocks are companies in the lithium industry. There are 2 main types of lithium companies: lithium producers and companies that rely on lithium as a raw material.

Companies that produce lithium can either mine hard rock or harvest lithium-brine deposits. Mining removes lithium from a mineral using a drill, while harvesting brine deposits extracts lithium that has dissolved in groundwater through evaporation.

The brine technique takes approximately 18 months, which is slower than traditional mining.

Many companies that use lithium generally focus on lithium-ion batteries and devices. For example, electric vehicles rely on lithium as the basis for their green technology.

Many of the major car manufacturers have been announcing partnerships with lithium miners. So price fluctuations and changes in the lithium market can directly affect the stock prices of companies that use lithium as a raw material.

Finder survey: Which industries do Australians hold stocks in?

What lithium ETFs are listed on the ASX?

Another way to invest in lithium is via an exchange-traded fund (ETF) that either tracks the price of lithium or a basket of lithium-related stocks.

There is currently only one dedicated lithium ETF on the ASX - the Global X Battery Tech & Lithium ETF (ASX: ACDC), which tracks the performance of global companies involved in the mining and refinement of lithium and the production of lithium batteries. The ACDC Lithium ETF has returned -3.03% so far in 2024 (last updated 29 October 2024).

There are also a handful of global ETFs that track some part of the lithium or battery sector but don't trade on the ASX:

• Amplify Lithium & Battery Technology ETF (NYSEMKT: BATT)
• iShares Global Clean Energy ETF (NASDAQ: ICLN)
• First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ: QCLN)
• ARK Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ)

In order to trade these ETFs, you'll need to have an account with a share trading platform that offers access to the US stock market.

Should I buy lithium shares?

While the world is already using a lot of lithium, demand is set to swell, with the lithium battery market alone growing by $92 billion by 2025. Investment in next-gen vehicles is set to exceed $500 billion by 2030.²

If you're looking to follow the next investment trend, then lithium could be right up your alley. Lithium is set to become one of the major commodities needed for the modern world.

While lithium has been traditionally used in ceramic and glass production, it’s now more popularly used in rechargeable batteries for smartphones, laptops and electric cars.

Lithium also strengthens other metals. For example, lithium alloys, such as aluminium-lithium, are used in bicycle frames and aircraft. In the pharmaceutical industry, lithium is used to balance neurotransmitters in the brain to treat bipolar disorder.

The world is progressively more technology-driven, which increases our need for materials such as lithium.

Rechargeable lithium-ion (Li-ion) batteries have multiple applications – from consumer smartphones and laptops to military voice and data radios. Lithium plays an essential role across mobile technologies, with the demand for lithium-ion batteries poised to triple by 2025, according to an analysis by S&P Global.

A lot of this growth will come off the back of electric vehicles (EVs). The Australian Department of Industry, Science, Energy and Resources forecasts EV sales to grow from around 5 million units in 2021 to 30 million by 2030. Deloitte agrees, stating EV sales are set to reach 11.2 million in 2025 and then 31.1 million by 2030, which is 32% of the total market share.

Expert insight

"The bottom line is that you have countries, governments and bodies pushing to make the world emission free by 2050, car makers are transitioning from fuel engines to EVs – with many making fuel engine cars obsolete."

Jessica Amir

Market Strategist, Moomoo

Buy ASX lithium stocks online

You'll need a brokerage account to buy lithium stocks or ETFs. Compare options in the table below.

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Name	Product AUFST	Price per trade	Inactivity fee	Asset class	International
eToro Exclusive		US$2	US$10 per month if there’s been no log-in for 12 months	ASX shares, Global shares, US shares, ETFs	Yes	Exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account. T&Cs apply. Trade stocks, commodities and currencies from the one account and get access to social trading.	Go to siteView details Compare	loading Fetching your data...
Tiger Brokers Finder AwardExclusive		US$1.99	$0	ASX shares, Global shares, Options trading, US shares, ETFs	Yes	Finder exclusive: Get 10 no-brokerage US or ASX trades in the first 180 days, plus US$30 NVDA shares (+US$30 TSLA shares ) when you deposit AU$2000 or more. Get 7% p.a. on uninvested cash for 30 days. T&Cs apply. Trade US, Asian and CHESS-sponsored ASX stocks and US options.	Go to siteView details Compare	loading Fetching your data...
Moomoo Share Trading Exclusive		US$0.99	$0	ASX shares, Global shares, Options trading, US shares, ETFs	Yes	Finder exclusive: Unlock up to AUD$4,000 AND US$4,000 in $0 brokerage over 60 days. T&Cs apply. Trade US, Asian and CHESS-sponsored ASX stocks and get access to social trading	Go to siteView details Compare	loading Fetching your data...
Superhero share trading Exclusive		$2	$0	ASX shares, US shares, ETFs	Yes	Sign up with code ‘finder24’ and get US$10 of Nvidia stock when you fund your account with $100 or more within 30 days. T&Cs apply. Enjoy US$2 brokerage (other fees may apply) on US stocks and buying ETFs as well as $2 fee to trade Australian shares up to $20,000.	Go to siteView details Compare	loading Fetching your data...

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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Risks of investing in ASX lithium stocks

Although the demand for lithium is soaring, lithium stocks have been drowning in a surge of new lithium producers from Chile, Argentina and Australia. When supply grows faster than demand, it can trigger a sharp price drop and cause stocks to become undervalued.

Lithium-ion batteries also require cobalt. Unfortunately, two-thirds of the world’s cobalt is mined in the Democratic Republic of Congo, making its supply susceptible to political instability. And since global cobalt mine supplies are also at risk of disappearing, there may not be enough cobalt to manufacture these batteries.

And it doesn’t help that there’s no benchmark price for lithium. So investors in Australia can only base the value of the industry on a handful of companies. You’re flying blind without a full sense of the global market, leaving investors and banks struggling to manage risk.

Bottom line

We can find lithium products in our everyday lives. The increasing demand for lithium-ion batteries in mobile devices and electric vehicles keeps this stock on Australian investors’ radars.

But to invest in lithium, you’ll need a brokerage account. Weigh a few trading platforms to find a brokerage firm that best fits your investing needs.

Frequently asked questions

• Who is the largest lithium supplier?

  Jiangxi Ganfeng Lithium is considered the largest lithium supplier and miner in the world. The company has a market capitalisation of $27.38 billion and holds lithium resources in China, Australia, Argentina and Mexico.

• How much does lithium cost?

  Unlike most metals, there is no traded price for lithium. Many companies sell their lithium on long-term contracts.

• How rare is lithium?

  Although the supply for lithium either exceeds or matches the demand in recent years, lithium is a comparatively rare element because you can only find it in low concentrations, according to the Handbook of Lithium and National Calcium.

Written by

Kylie Purcell

Investments analyst

Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs. See full bio

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