Staff Report : The best ASX lithium stocks based on year-to-date gains have performed well as strength in the lithium market holds strong. Best asx Lithium stocks 2022 has been hailed as “the new gasoline” and “the new petroleum,” and for a good reason: battery consumption and production is growing exponentially, with the potential to change how we power things dramatically over the next few decades. In this article, I’ll dial down the hype and look at the Top 5 ASX Lithium Stocks which are producing lithium or are very close to it.
Lithium is a massively growing industry with the advent of clean energy and the move towards decarbonisation. Lithium demand is expected to grow 9-fold by 2030 and is one of the hottest sectors on the ASX right now. And while many investors focus on the biggest names in electric cars (like Tesla Motors (NASDAQ: TSLA) and Panasonic).
Let’s now explore the top five lithium stocks to watch on the ASX. They are listed below in order of greatest market capitalisation.ustralia to Buy in 2022-23.
Best 5 ASX lithium stocks in 2022-23 | Lithium stocks that could explode in 2022, 2023
The hardest part about investing is the ability to process a large amount of information and factors to be able to navigate the macroeconomic and fundamental environment to find the best lithium stocks. Lithium stocks are up and down every day, but this is a long-term investment, and there are 5 best Australian lithium stocks ASX that are really worth buying in the year 2022; and I have explained all of them in detail and why you should buy those lithium stocks.
Global Lithium (ASX: GL1)
Global Lithium is focused on its 100 percent owned Marble Bar lithium project, company own 100% of this project and it is located in North Pilbara Craton of Western Australia. Another project where GL1 have 80% and that is Manna lithium project from Breaker Resources. This two companies plan to work together on exploration at the project in 2022. GL1 has also signed a deal of spodumene concentrate with Suzhou TA&A Ultra Clean Technology of 10 years on 03 march 2022.
Global Lithium (ASX: GL1) share price is $1.75 AUD with an 52 week high of $2.79 AUD and 52week low of 0.24AUD.
Core Lithium (ASX: CXO)
Core Lithium (ASX:CXO) is an Australian mining company aiming to become one of the biggest exporters of lithium to the Asian region. Investing your money in CXO would be a great option to choose in terms of the returns you can get from it. The company has seen its stock skyrocket a monumental 887% over the past 12 months due to the ever-increasing price of lithium and substantial progress towards the commencement of production. So, if you invest your money now, then there are high chances that by the following years, your investment will have grown bigger.
The company will potentially enter production in 2H’FY22 and produce about 197,000 mtpa. Core Lithium share price is $1.35 AUD, It is growing every single day, and huge returns are expected in the year 2022 because of its huge projects.
Lake Resources Ltd (ASX: LKE)
Is our top pick in 2022. It’s got potential to appreciate by quite a good numbers when it becomes the next lithium producer to come online after Galaxy Resources, Pilbara Minerals, and Altura Mining. Having recently announced an offtake agreement with German specialty chemicals company LANXESS AG (ETR: LXS), LKE is about to be taken seriously by the market. LKE is a lithium company that has been around since 2005, but they have remained under the radar until early 2018. In 2012, management was forced to sell off its assets as it became apparent that their brine extraction technology wasn’t going to be commercialised anytime soon.
In 2017, LKE successfully raised $8m AU and bought back the original brine assets. Brine extraction is precisely what OTOCORB did, and it’s now one of Australia’s largest lithium producers with its market cap of AU$1.24b. In 2018, LKE purchased another brine asset near Greenbushes in WA for $6m AU. Currently, they entered a binding offtake agreement with a division of LANXESS AG (ETR: LXS), a German specialty chemicals company. LKE is a mid-tier producer with an estimated 18,000 tonnes of LCE production per annum from 2020.
In our opinion, LKE has not received enough attention from the market. For a company with a lot of near-term catalysts, it is massively undervalue. For that reason, We believe that LKE will be a good lithium investment in 2022.
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Arizona lithium (ASX: AZL)
Arizona Lithium Limited (ASX:AZL), previously Hawkstone Mining Limited, is focussed on the exploration and development of its 100% owned flagship Big Sandy lithium project, located in Arizona, in the United States Battery Corridor. This company has performed very well from last couple of month with an 52 week high of $0.20 and 52 week low of $0.04.
This company was founded in 1969 (you can trust them). At current valuation, fair value of this share stands at $0.21 estimated by Morningstar Quantitative but some prediction says it can easily reach $1AUD. Our prediction for price of AZL is $ 0.38 AUD by the end of year 2022. Current, AZL share price is $0.16AUD.
Lithium Australia (ASX: LIT)
This stock that looks like it will do very well for investors. It recently acquired two new projects, one in Australia and one in Canada, which together contain the potential to double the company’s total output. It all started back in 2005 when LIT was known as ADX. In 2010, it changed its name to Lithium Australia NL and started exploring lithium in Canada under the supervision of Dr James Nelson from the University of British Columbia. LIT started looking into opportunities in Australia, acquiring Jervois Mining Ltd, which is focus on the hard rock sector with a single asset.
In addition, the company also has a market capitalisation of around $1 billion. However, in 2013 LIT’s fortunes change when it acquire the PLS project from Galaxy Resources Ltd, which is majority-own by mining magnate Clive Palmer. This project contains a large part of the country’s known lithium resources and about half of the world’s known spodumene resources.
In 2014, LIT made further strides when it acquired its flagship project located in Lake Taldy, Queensland, from Mineral Deposits Limited. The project is a hard rock lithium deposit and contains one of the highest grade hard rock lithium deposits currently being explore anywhere in Australia or North America.
This project has the potential to reach an output of 40,000mt, and it is in a very advance stage of development. This could be develop in stages, with the first one started in 2020.In addition, LIT recently made its latest acquisitions when it acquired Lithium Power International Limited (Lithium Power) and e-Cobalt Solutions Inc. (e-Cobalt).
ASX lithium stocks: further important information
The best current alternative to lithium is nickel-based batteries. But lithium batteries charge quicker, and have no memory issues, meaning their maximum charging capacity isn’t affected by each charging cycle. And nickel batteries run hotter quicker, so usually require a cooling system.
On the other hand, lithium’s instability makes it around 50% more expensive to manufacture lithium batteries, which impacts the cost of an EV. Lithium batteries also usually have a shorter shelf life than nickel batteries before needing replacing. And because nickel is used more widely, the metal can already be recycled profitably.
But fundamentally, lithium is likely to be the metal that will power the EV revolution, unless there is a giant technological leap forward.