Prices for lithium, a soft, silvery-white metal used in batteries, have been a casualty of slowing expectations for electric vehicle growth, perhaps providing long-term investors with attractive entry points.
The price for battery-grade lithium carbonate traded in China, the world’s biggest electric vehicle market and the dominant player in the lithium supply chain, hit its lowest point in four years in April.
[Sign up for stock news with our Invested newsletter.]
It’s a continuation of a slump from record highs in 2022. Those lofty prices were driven by expectations of a booming EV market that led to increased battery production. Now that expectations have cooled off, there’s an EV lithium battery surplus, denting demand for the metal.
Mark LaVerghetta, co-founder and director of ReElement Technologies Corp., a subsidiary of American Resources Corp. (ticker: AREC), points out that price fluctuations are common for lithium, as for other commodities, and the market has returned to its long-term price range after a three-year spike. “Lower consumer demand for EVs in the past year or so has contributed to lower demand for lithium-based batteries,” LaVerghetta says. “Meanwhile, global lithium supplies have increased, but battery gigafactory growth has not quite matched that pace.”
New lithium projects in Argentina and Australia coming online have also contributed to the supply of lithium outpacing near-term demand, says Jason Barnard, CEO of Foremost Clean Energy Ltd. (FMST).
Despite recent price trends, however, it appears that the long-term investing case for lithium, and the companies that produce it, remains intact.
“Yes, we’ve seen some headlines that suggest regions like China and Europe are oversaturated with EVs, but, to my mind, those concerns are overblown,” says Julia Khandoshko, CEO of the broker Mind Money. “EVs aren’t going anywhere, and what we’re seeing now is a temporary dip rather than the end of the road. EVs are becoming the new normal, and as their adoption grows, demand for lithium will only increase.”
Angelo DeCandia, professor of business and accounting at Touro University, cautions that the turnaround in the industry will take time. “For the longer term, it seems inevitable that there will be upside potential both for lithium itself and for companies that produce it,” he says. “For investors with a longer-term investment horizon, this may be a good time to purchase lithium stocks. But for those investors looking to rack up shorter-term profits, this probably is not the investment they should be looking at.”
According to Ryan Melsert, CEO of American Battery Technology Co. (ABAT), there are numerous U.S.-based lithium-ion battery factories up and running, planning to ramp up production or under construction, meaning the long-term trajectory for lithium remains favorable amid the energy transition away from fossil fuels and toward electrification.
“The current valuations of U.S. lithium companies are relatively low compared to recent years, and investors may be able to find attractive opportunities, especially with the lithium market set to grow as clean energy initiatives expand globally,” Melsert says. “For patient, risk-tolerant investors with a long-term outlook, these companies could represent a compelling investment as the world continues its transition toward renewable energy and electric vehicles.”
With that in mind, here’s a look at several top lithium stocks and exchange-traded funds, or ETFs:
| Lithium Stock | Industry Focus |
| Albemarle Corp. (ALB) | Lithium mining, extraction, purification |
| Mineral Resources Ltd. (OTC: MALRY) | Australian lithium producer, operator |
| Sociedad Química y Minera de Chile SA (SQM) | Diversified miner, solar salt maker |
| Ganfeng Lithium Group Co. Ltd. (OTC: GNENF) | Mining, refining, battery manufacturing |
| Global X Lithium & Battery Tech ETF (LIT) | Pure-play lithium, batteries, EVs |
| Global X Lithium Producers Index ETF (HLIT.TO) | Concentrated focus on lithium producers |
Albemarle Corp. (ALB)
Amid the push in Canada and the U.S. to build domestic critical mineral supply chains and the global tariff situation, North American lithium projects are becoming strategically vital, according to Barnard.
That not only may bode well for Foremost’s lithium projects in Canada but also for those of Albemarle, a U.S.-based company that is one of the largest producers of lithium in the world, in addition to being one of the most vertically integrated, with mining, extraction and purification operations.
Another advantage for Albemarle is that it’s not a pure play, as it also sells bromine and catalysts, which gives it other revenue streams aside from lithium.
Mineral Resources Ltd. (OTC: MALRY)
This proven lithium producer is based in Australia, a generally mining-friendly jurisdiction that is the world’s biggest producer of lithium.
The company has a 50-50 joint venture with Albemarle at the Wodgina mine in Australia, with Mineral Resources serving as the operator.
The mine is one of the largest known hard-rock lithium deposits in the world and has an estimated mine life of 30 years or more.
Mineral Resources also owns half of the Mt. Marion lithium operation in Western Australia along with China-based Ganfeng Lithium Group Co. Ltd. (OTC: GNENF), one of the largest lithium mining companies in the world, offering some risk mitigation along with the Australian company’s partnership with Albemarle.
Sociedad Química y Minera de Chile SA (SQM)
Behind Australia, Chile comes in as the world’s No. 2 lithium producer, but it holds the world’s largest reserves of the metal. This Chilean company is one of the largest lithium miners in the world.
Like Albemarle, Sociedad Química y Minera de Chile has a diversified product line beyond lithium. It’s also involved in specialty plant nutrition, iodine, potassium and industrial chemicals.
In addition to being involved with the energy transition by supplying lithium, a key material for batteries, SQM also makes solar salts. This mixture of sodium nitrate and potassium nitrate is used to store and transfer heat in plants that use mirrors to concentrate solar energy and produce electricity.
Ganfeng Lithium Group Co. Ltd. (OTC: GNENF)
While China is the world’s third-largest producer of lithium behind Australia and Argentina, the Asian nation controls more than half of battery-grade lithium refining.
Ganfeng Lithium, a Chinese company and one of the largest lithium mining companies in the world, is one of those producers that has the flexibility to cut back on production when prices slump.
It’s a vertically integrated battery minerals company, with lithium mining in addition to refining and processing. It’s also involved in battery manufacturing and battery recycling. In addition to China, the company has operations in Argentina, Australia, Mali and Mexico.
Global X Lithium & Battery Tech ETF (LIT)
One way to hedge against risks in a market like lithium is to own multiple companies packaged in an exchange-traded fund. These funds trade under a single ticker symbol, offering diversification between individual companies with their various fundamentals and geographic concentrations.
This ETF and competitor Amplify Lithium & Battery Technology ETF (BATT) offer further diversification by including battery and electric vehicle exposure along with purer-play lithium stocks.
DeCandia says investors can consider LIT as “as a way to capture the upside while minimizing the downside.” The fund has suffered as lithium prices have dropped, but that means it is currently trading at an attractive entry point, he points out.
Global X Lithium Producers Index ETF (HLIT.TO)
Investors looking for more concentrated exposure to lithium producers can consider this ETF. It invests in companies involved in the mining and production of lithium, lithium compounds or lithium-related components.
One of the fund’s largest holdings is Pilbara Minerals Ltd. (OTC: PILBF), which owns all of the Pilgangoora lithium project. The company says it’s the biggest independent hard-rock lithium operation in the world. The biggest geographical representation in the fund is the U.S., which could help position it well as the North American lithium supply chain gathers steam.
Regardless of where you invest in lithium right now, you’re going to need patience as the market stabilizes.
More from U.S. News
9 of the Best Bond ETFs to Buy for 2025
7 Best Cryptocurrency ETFs to Buy
6 Best Lithium Stocks and ETFs to Buy in 2025 originally appeared on usnews.com
Update 05/02/25: This story was previously published at an earlier date and has been updated with new information.
