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.
And while many investors focus on the biggest names in electric cars (like Tesla Motors (NASDAQ: TSLA) and Panasonic).
Let’s talk about the 5 Best ASX Lithium Stocks Australia to Buy in 2022.
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5 Best ASX lithium stocks 2022 | Lithium stocks that could explode in 2022, 2023
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.
1. 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.
2. Core Lithium (ASX: CXO)
Investing your money in CXO would be a great option to choose in terms of the returns you can get from it. The reason for that is because when you look at the company’s financial performance, you will see that it has been increasing quarter after quarter and year after year. So, if you invest your money now, then there are high chances that by the following years, your investment will have grown bigger.
CXO share price is $1.35 AUD, while writing this, and you have seen exceptional growth in the stocks of this company. It is growing every single day, and huge returns are expected in the year 2022 because of its huge projects. So, investors would not only be able to gain decent returns now but also in the future as well with CXO.
3. Lithium Australia (ASX: LIT)
LIT is a lithium 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).
4. Arizona lithium (ASX: AZL)
Our newly added pick for top lithium share to buy in 2022 is Arizona lithium (ASX:AZL)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
5. Global Lithium (ASX: GL1)
GL1 is an another exploration company and currently fully focused on its 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. Both companies are working on this project started 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.
Currently, GL1 share price is $1.75 AUD with an 52 week high of $2.79 AUD and 52week low of 0.24AUD. As per Morningstar, fair value of GL1 is $2.84 AUD. So, you can imagine yourself that getting into this company at this price is worth or not.
Must checkout Best Uranium Stock to invest
Will lithium stocks go up
Yes, lithium stocks will go up for sure due to many reasons such as increasing demand of lithium, increasing demand of electric cars where lithium will be used as prime material for producing batteries. Apart from cars, lithium has huge demand in medical sector and this demand is constant means medication is required at all time so need for lithium will never stop.
Should I invest in lithium stocks
Yes, you should definitely diversify you portfolio by investing in lithium stocks or ETFs who invest in lithium.
Demand of lithium is increasing day by day, as per many major analysists lithium demand will be around 2 metric million tons in year 2030.
As you know, lithium is getting used in batteries and demand of electric cars is increasing which means demand for lithium will also increase.
Apart from above 5 best lithium shares keep an eye on bellow mentioned as well to see massive gains in 2022
List of lithium mining companies in Australia
| Lithium companies | ASX code |
| AVZ Minerals | AVZ |
| Core Lithium | CXO |
| Lake resources | LKE |
| Liontown Resources | LTR |
| Mineral Resources | MIN |
| Orocobre Limited | ORE |
| Piedmont Lithium | PLL |
| Pilbara Minerals | PLS |
| Vulcan Energy | VUL |
| Global lithium | GL1 |
Small cap lithium stocks ASX
- METALS AUSTRALIA (ASX:MLS)
- SHREE MINERALS (ASX:SHH)
- TAMBOURAH METALS (ASX:TMB)
- BRYAH RESOURCES (ASX:BYH)
Above mention stocks are connected to lithium mining, exploration somehow that why we considered these stocks as Best Australian lithium shares with market-cap under 15 million. We recommend to keep these stocks under the radar.
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FAQ
Should I buy lithium Australia shares ?
Yes, you should buy Australian lithium stocks because of many reasons such as quality of Australian lithium is top notch which means Australian lithium is in demand due to its quality. Production rate is very high of Aussie lithium mining companies. so, they can mine fast and sell lithium fast in market and can make money quickly. so their are higher chances that Australian lithium shares can give you better returns as compared to other countries lithium stocks.
Which lithium stock to buy ASX ?
Top lithium stocks to buy on ASX are:
1. Lake Resources Ltd (ASX: LKE)
2. Core Lithium (ASX: CXO)
3. Lithium Australia (ASX: LIT)
4. Arizona lithium (ASX: AZL)
5. Global Lithium (ASX: GL1)
Why are lithium stocks going up ?
Main reason for lithium share price to go up is increasing demand of lithium in market. This demand is increasing because demand of Electric Vehicles are also increasing and in today’s world lithium is main source of power in batteries used in EVs
How to buy lithium stocks ?
Their are many ways to buy lithium stocks such as you can invest in lithium mining, exploration companies directly or you can buy an ETFs which are made up of some lithium companies. To buy lithium stocks in Australia, Commsec is the best platform if you are investing above $500 AUD or if you want to invest under $500 than you can buy on superhero trading platform.
Conclusion
So, these are some of the best asx lithium stocks 2022 , in which you could invest in at this point in 2022. A lot of research has done on them, and they show great potential for growth not only now but also in the near future. So, if you choose any one of them today, then by end of 2022, you will see that your money has grown more than you expect.
Apart from this if you want to know difference between Preference Shares vs Ordinary Shares then checkout our latest post as well as if you are keen in improving your investing skills than read rich dad poor dad book from our investing section and if you want to see how much tax you need to pay in Australia then check our latest post on tax tables.
