So the value of your contract is based on the difference between the contract price and the asset’s value on the expiration date. Investing in companies that make lithium-ion batteries like Panasonic, Livent and Samsung allows you access to this market, while at the same time allowing you to invest in the companies themselves. That means that if someone does invent a better way of storing power, you are less exposed than you would be by investing in lithium more directly. The South American country’s president recently announced intention to nationalize the lithium industry with a state-owned company.

And then, some domains will likely take off as people need to charge their lithium batteries quickly and cheaply. Another way to take advantage of the lithium growth is to invest in solar energy companies, especially portable solar energy storage that allows people to charge their devices and transportation batteries. Besides the more obvious battery markets of smartphones, tablets, and wearables, there are also new products that take advantage of the power of lithium-ion batteries. For example, electric scooters are now planted in many major US cities to give people a quiet and easy way to get around.

Lithium-ion batteries typically have up to 6x higher energy density, nearly 2x longer charge and perform better in cold weather environments,5 making them ideal energy storage solutions. Once you have chosen the stocks you wish to own, make sure you have a brokerage account and that you have funded your account. If EVs continue to increase in demand, though, the price of lithium—as well as the prices of stocks for the companies that mine, refine and distribute lithium—could go up again. And while an unproven company does come with risk, ALTM stock also has the benefit of not having a particularly long track record to compare itself against during this admittedly soft spot for lithium stocks.

  1. This information should not be relied upon as a primary basis for an investment decision.
  2. An ETF is similar to a mutual fund except that it can be bought and sold throughout the day, and the ownership of the ETF is usually divided amongst multiple people.
  3. Investing in mining companies that produce base materials and chemicals can be a wild ride for investors.
  4. The companies included under the umbrella of lithium stocks may be involved in the production of other metals and minerals, but lithium will be included in their portfolio.

So, investing in lithium has the potential to be particularly profitable over the next few years. In this article, we will explore everything you need to know so that you can intelligently invest in this valuable metal. One of the younger firms on this list of best lithium stocks, Pilbara was incorporated in 2005 and primarily produces lithium through a wholly-owned project located in a region of Western Australia. That site is billed as the largest independent hard-rock lithium operation in the world, and Pilbara has estimated the mine life at 34 years of output.

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While it is unnecessary to understand the details of various extraction processes, knowing about them might help you decide which companies will be doing well in the future. No matter what level of unique research you are willing to put how to buy sundaeswap in, at the end of the day, following general investment advice will work for you. It’s essential to have the patience and composure to observe your investment’s growth and decline without reacting excessively to short-term fluctuations.

There are several ways to invest in lithium as a commodity if you are interested in it. You can pursue the stocks of companies that produce this material, or those that use it in vehicles, batteries and related applications. You can also invest in groups of lithium stocks by buying a stake in funds, like ETFs. Alternatively, you can participate directly in lithium with options and futures. Two of the most common ways to invest in lithium are with stocks, also known as equities, and a type of security that is known, collectively, as derivatives.

How to Invest in Lithium (& Why You Should)

The “newest” company on this list of the best lithium stocks, Arcadium was formed at the beginning of 2024 through a “merger of equals” between two mid-sized firms, Allkem and Livent. As the company framed it in a press release announcing the deal, the benefits of the merger include vertical integration across various mining processes through chemical manufacturing and other downstream functions. This expansion has been driven by organic growth as well as aggressive acquisitions and joint ventures. For instance, in 2023, Ganfeng entered into a deal with Leo Lithium to invest more than $100 million in a Mali mine. The company also invested $350 million toward a production and R&D facility in China’s Hubei province. These big investments show Ganfeng is looking to the future even amid current oversupply and volatility in the sector.


These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries. SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Investing in lithium stocks is the same as investing in any other kind of stock. First, you will want to do your proper due diligence to know which stocks you want to own. This can be accomplished with the help of a number of free and/or paid websites where investors can set up screens to help them select stocks.

His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment. And even if such an option came to be, it would take years to increase enough to affect the lithium industry. The current demand for lithium, mainly in industries that use lithium batteries, is already orders of magnitude larger than in the 1990s.

When investing in lithium materials, preparing via education will always help. Research helps you understand the landscape and makes you more likely to make good decisions. And since many of the biggest companies will continue to dominate as the lithium industry takes off over the next ten years, it’s smart to take the obvious move and invest in the companies with a big market share.

Soon after you register, the investing platform will email you the precise instructions. To trade lithium ETFs, you first need to gain entry into the corresponding market, which you can do by using a third-party brokerage. Global X Lithium & Battery Tech ETF strives toward investment outcomes that correspond to the price and yield performance of the Solactive Global Lithium Index. The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Though modest in size, Pilbara is a bit more difficult to research given that it trades over the counter and lacks analyst coverage in the United States.

Additionally, the company invested $260 million in the property to seize 100% ownership of the site at the end of last year. If you want complete control over which companies you’re investing in, individual stocks, while riskier, may be more attractive to you. We believe everyone should be able to make financial decisions with confidence. For example, calcium, magnesium, mercury, and zinc are all possible substitute elements for the anodes in certain battery types. And the other main industry that uses lithium—glass, and ceramics—can substitute sodic and potassic fluxes in their production. Even though global production rose from 40,000 tons in 1995 to 86,300 tonnes by 2020, there is expected to be a deficit over the next ten years.

While electric vehicles are better for the environment—because they do not burn fossil fuels—they still harm the environment when they rely on mining and extraction processes that harm the environment. For example, investing in a huge electric vehicle company like Tesla is a safe way to invest in a company that will stay command-line interface wikipedia on the cutting edge of battery technology. Foreign lithium markets are a potentially great investment for multiple reasons. Still, the two main reasons are that foreign governments are incentivizing battery technology and that many of the biggest lithium reserves exist in Brazil, Argentina, Australia, Chile, and China.

While any investment in future-oriented technology is a gamble, since someone could invent a better battery tomorrow, for the time being it looks like demand for lithium will remain high. The final component of growing lithium demand is its use in consumer electronics such as laptops and cellphones. Finally, you can invest in lithium directly through the commodities market with futures and options. With these derivatives, as this type of security is known, you can literally buy and sell access to lithium as a material.

It is also worth noting that Albemarle is one of the top holdings in several top lithium funds. For example, it commands a more than 9% allocation in the Global X Lithium and Battery Tech ETF (LIT), which boasts $1.5 billion in assets at present. Therefore, if investors pile into exchange-traded funds, or ETFs, as a way to play lithium, ALB stock will see an outsized benefit from these capital flows. Like a futures contract, in an options contract you trade the value of an asset.

The infrastructure of the lithium industry includes mining companies, battery companies, electric vehicle companies, and other big lithium-using industries like glass and ceramic production. One of the best asp tutorial ways to help the EV revolution is to invest in publicly traded lithium companies by investing in lithium stocks and ETFs. Your investment will go a long way in producing electric vehicle batteries.