World lithium shares and the lithium market faced a turbulent 2024, marked by oversupply, softer-than-expected electrical automobile (EV) demand and geopolitical tensions that reshaped the trade.
Costs for lithium carbonate plummeted 22 percent over the 12 months, pushed by a world provide glut and weaker demand exterior of China.
Amid this difficult panorama, mergers and acquisitions surged. The 12 months began out with the completion of the merger between Livent and Allkem that birthed Arcadium Lithium (NYSE:ALTM,ASX:LTM), and in October Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) introduced its acquisition of Arcadium.
In the meantime, EV demand rebounded late within the 12 months, led by report gross sales in China, at the same time as geopolitical uncertainty, tariffs and coverage shifts added to market volatility.
Even towards this backdrop, some lithium shares carried out strongly. The lists of prime lithium shares beneath have been generated utilizing TradingView’s stock screener, and all lithium shares had market caps above $50 million of their respective currencies when knowledge was gathered.
Knowledge for Canadian shares was collected on December 27, 2024, and knowledge for Australian shares was gathered on December 31, 2024. Whereas US lithium firms have been thought-about for the listing, none have been up year-to-date on the time knowledge was gathered.
Yr-to-date acquire: 220 %
Market cap: C$106.11 million
Share value: C$0.80
Exploration agency Q2 Metals is exploring its flagship Mia lithium property within the Eeyou Istchee James Bay area of Québec, Canada. The property comprises the Mia pattern, which spans over 10 kilometers. Additionally included in Q2 Metals’ portfolio is the Stellar lithium property, comprised of 77 claims and situated 6 kilometers north of the Mia property.
In 2024, Q2 Metals additionally centered on exploring the Cisco lithium property, which is located in the identical area. On February 29, the corporate entered into three separate option agreements to realize a one hundred pc curiosity in Cisco. The information induced its share value to skyrocket, reaching a Q1 excessive of C$0.54 on March 4.
Q2 Metals closed the acquisition of Cisco in June and now wholly owns the mission.
In mid-Could, the corporate announced the start of a summer time drill program on the Cisco property. It has since launched a number of vital updates, together with the affirmation of eight new mineralized zones on July 8.
On October 1, Q2 released assays from the drill program, and its share value spiked on the information, in the end climbing to an all-time excessive of C$1.48 on October 11.
“These assays proceed to validate the potential and scale of the Cisco Property as that of a bigger mineralized system,” mentioned Neil McCallum, vice chairman of exploration. “One essential commentary of those outcomes is the higher-grade nature of the bigger mineralized system as we take a look at and monitor the system progressing to the south.”
By the top of the drill program, the corporate had drilled 17 holes overlaying 6,360 meters in whole, and it launched the final results from the marketing campaign on December 17.
As of mid-December, Q2 now has the unique proper to amass a one hundred pc curiosity in 545 further mineral claims, which might triple its land place on the Cisco lithium property. The brand new claims, situated south of the unique property, improve prospects for growth and future mining infrastructure.
Yr-to-date features: 73.08 %
Market cap: C$67.57 million
Share value: C$0.45
Exploration firm Energy Metals holds a portfolio of diversified belongings in Ontario and Québec, Canada.
In late February, Energy Metals commenced a winter drill program at its Case Lake property in Northeastern Ontario. This system was designed to increase and outline lithium-cesium-tantalum (LCT) mineralization, constructing on earlier work that exposed high-grade lithium and cesium mineralization.
Firm shares rose to an H1 excessive of C$0.47 on the finish of March coinciding with information that Energy Metals had staked the 7,000 hectare Pelletier mission, consisting of 337 mineral claims in Northeast Ontario. Based on the corporate, the mission options LCT potential, with peraluminous S-type pegmatitic granites intruding into metasedimentary and amphibolite formations.
Throughout This fall, Energy Metals identified a brand new pegmatite zone at Case Lake by way of soil sampling. The samples from the zone, situated north-northwest of its West Joe prospect, revealed elevated ranges of cesium, tantalum, lithium and rubidium, highlighting promising drill targets for the winter program.
The corporate has additionally launched its Part 2 drone magnetic survey, to refine its structural mannequin for crucial mineral targets at West Joe and the Foremost Zone forward of 2025 exploration efforts.
In a December 10 exploration update, Energy Metals disclosed that its companion Black Diamond Drilling, a First Nations owned drilling firm, had accomplished a complete of 16 drill holes for 971 meters of the deliberate 2,000 meter program. Environmental research are additionally ongoing.
Shares rose over the next week to a year-to-date excessive of C$0.49 on December 16.
Yr-to-date features: 45.28 %
Market cap: C$163 million
Share value: C$0.77
South America-focused Lithium Chile owns a number of lithium land packages in Chile and Argentina, together with its Salar de Arizaro property in Argentina.
On April 9, Lithium Chile announced a 24 percent increase within the useful resource estimate for Salar de Arizaro. The brand new whole for the mission is 4.12 million metric tons (MT) of lithium carbonate equal, categorized as follows: 261,000 MT within the measured class, 2.24 million MT within the indicated class and 1.62 million MT within the inferred class.
Not lengthy after, on April 18, the corporate reported the creation of two wholly owned Canadian subsidiaries — Lithium Chile 2.0 and Kairos Gold — as a part of a spinout to separate its Chilean and Argentinian belongings.
Lithium Chile will retain its Argentinian lithium initiatives, and switch its 111,978 hectares of Chilean lithium properties to Lithium Chile 2.0 and its portfolio of gold belongings in Chile to Kairos Gold.
In a July operational update for the Salar de Arizaro mission the corporate highlighted {that a} drill gap encountered “a brine-rich, sandy formation encountered from 161 to 500-metres.”
An August announcement supplied an replace, noting the spin out of Lithium Chile 2.0 was reliant on finalizing a strategic deal for the corporate’s Arizaro property. As for Kairos Gold, its spin out was effective on December 4.
In mid-December, Lithium Chile penned a letter of intent to sell its 80 % stake of the Argentinian Arizaro lithium mission.
Whereas Lithium Chile didn’t disclose the customer it was famous that the customer “is a big, Asian based mostly firm based over 20 years in the past (and) a diversified enterprise with vital pursuits in mining, renewable power, and expertise sectors.”
The transfer to promote its flagship asset alerts a big step within the firm’s strategic realignment. Though firm shares reached a year-to-date excessive of C$0.88 in March, the latest sale information has pushed shares into the C$0.80 stage.
1. Vulcan Energy Resources (ASX:VUL)
Yr-to-date acquire: 84.48 %
Market cap: AU$1.19 billion
Share value: AU$5.35
Europe-focused Vulcan Vitality Assets goals to assist a carbon-neutral future by producing lithium and renewable power from geothermal brine. The corporate is at the moment growing the Zero Carbon lithium mission in Germany’s Higher Rhine Valley. Vulcan is using a proprietary alumina-based adsorbent-type DLE course of to supply lithium with an finish aim of supplying sustainable lithium for the European EV market.
On April 11, Vulcan announced the commencement of lithium chloride manufacturing at its lithium extraction optimisation plant in Germany. Based on the corporate, the milestone marks the primary lithium chemical manufacturing in Europe utilizing native provide. The plant constantly exhibited over 90 % lithium extraction effectivity.
The corporate already has binding lithium offtake agreements in place with main automakers and battery producers, and expects to produce sufficient lithium for 500,000 EVs throughout the first section of manufacturing.
In the course of the third quarter, Vulcan received its first licences for lithium and geothermal exploration in Alsace, France. The permits cowl 463 sq. kilometres, increasing Vulcan’s whole licenced space within the Higher Rhine Valley to 2,234 sq. kilometres throughout France and Germany.
In early August, Vulcan began commissioning its downstream lithium hydroxide optimisation plant (CLEOP) close to Frankfurt, Germany, which is able to course of the lithium chloride focus from its DLE plant.
A mid-October launch from Vulcan outlines a memorandum of understanding with industrial software program designer AVEVA. The partnership will see AVEVA construct a digital framework for Vulcan’s Zero Carbon lithium mission.
Additionally in October, the company earned S&P World’s highest “darkish inexperienced” sustainability score, a primary for the mining sector, underneath its Inexperienced Financing Framework.
On November 8, Vulcan introduced it had commenced lithium hydroxide production at CLEOP. The milestone coincided with an AU$162 million funding infusion from Germany’s Federal Ministry of Economics and Local weather Safety and the European Restoration and Resilience Facility.
To finish the 12 months, Vulcan announced the signing of a AU$1.45 billion conditional debt dedication letter with Export Finance Australia and a gaggle of seven industrial banks.
Yr-to-date acquire: 6.67 %
Market cap: AU$353.35 million
Share value: AU$0.16
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron mission in Nevada, US. The mission is taken into account the “sole lithium-boron deposit in North America.”
As a part of the allowing course of for the Rhyolite Ridge mission, Ioneer completed and submitted the executive draft environmental impression assertion (EIS) to the US Bureau of Land Administration (BLM) in mid-January. In mid-September, Ioneer introduced that the BLM published the final EIS, shifting the corporate nearer to development.
The great overview course of addressed environmental considerations, notably concerning the safety of the endangered Tiehm’s buckwheat plant discovered on the web site. Ioneer has dedicated to measures aimed toward safeguarding the plant’s habitat.
In October, Ioneer secured final federal approval for its Rhyolite Ridge mission, marking the primary US lithium mine licensed underneath the Biden administration.
Rhyolite Ridge is projected to supply ample lithium for roughly 370,000 electrical automobile batteries yearly. Building is slated to begin in 2025, with manufacturing anticipated by 2028.
Ioneer noticed its shares attain a 2024 excessive of AU$0.31 on October 28.
3. Prospect Resources (ASX:PSC)
Yr-to-date acquire: 2.25 %
Market cap: AU$52.03 million
Share value: AU$0.09
Africa-focused exploration firm Prospect Assets holds a diversified portfolio of belongings in Zimbabwe, Zambia and Namibia. The corporate’s lithium prospects, Omaruru and Step Apart, are in Namibia and Zimbabwe respectively.
In late June, Prospect released an update on its exploration actions, reporting robust assay outcomes from Part 4 diamond drilling on the Step Apart lithium mission in Zimbabwe and follow-up Part 2 drilling on the Omaruru lithium mission.
Within the assertion, Managing Director Sam Hosack highlighted the numerous mineralization potential at each initiatives.
Transferring ahead, Prospect plans to decelerate spending at its lithium initiatives because it turns to its newly acquired Mumbezhi copper mission in Zambia. The corporate believes it might probably monetize Step Apart within the close to time period to assist on this aim.
In its June quarterly results, Prospect famous the completion of drilling and fieldwork for the Part 4 diamond drilling program on the Step Apart lithium mission in Zimbabwe, with no additional exploration deliberate. The mission is being ready on the market to assist fund the Mumbezhi copper mission.
In the meantime, Part 2 drilling on the Omaruru lithium mission is full, and the corporate has lowered spending to holding prices as focus shifts to the Mumbezhi mission.
In its September quarterly report, the corporate famous it was discontinuing its Bikita Gem earn-in mission in Southeastern Zimbabwe after drilling outcomes didn’t determine economically viable volumes of petalite-rich lithium mineralization.
Shares of Prospect registered a 2024 excessive on Could 28, when shares have been buying and selling for AU$0.21.
FAQs for investing in lithium
How a lot lithium is on Earth?
Whereas we do not understand how a lot whole lithium is on Earth, the US Geological Survey estimates that international reserves of lithium stand at 22 billion metric tons. Of that, 9.2 billion MT are situated in Chile, and 5.7 billion MT are in Australia.
The place is lithium mined?
Lithium is mined all through the world, however the two countries that produce the most are Australia and Chile. Australia’s lithium comes from primarily hard-rock deposits, whereas Chile’s comes from lithium brines. Chile is a part of the Lithium Triangle alongside Argentina and Bolivia, though these two nations have a decrease annual output.
Rounding out the highest 5 lithium-producing nations behind Australia and Chile are China, Argentina and Brazil.
What’s lithium used for?
Lithium has many makes use of, together with the lithium-ion batteries that energy electrical automobiles, smartphones and different tech, in addition to prescribed drugs, ceramics, grease, lubricants and heat-resistant glass. Nonetheless, it’s largely the electrical automobile trade that’s boosting demand.
How you can put money into lithium?
These seeking to get into the lithium market have many choices in terms of the right way to put money into lithium.
Lithium shares like these talked about above could possibly be a superb choice for buyers within the house. When you’re seeking to diversify as a substitute of specializing in one inventory, there’s the World X Lithium & Battery Tech ETF (NYSE:LIT), an exchange-traded fund (ETF) centered on the steel. Skilled buyers may take a look at lithium futures.
Not like many commodities, buyers can’t bodily maintain lithium because of its harmful properties.
How you can purchase lithium shares?
By means of using a dealer or an investing service reminiscent of an app, buyers should purchase lithium shares and ETFs that match their investing outlook.
Earlier than shopping for a lithium inventory, potential buyers ought to take time to analysis the businesses they’re contemplating; they need to additionally determine what number of shares shall be bought, and what value they’re prepared to pay. With many choices available on the market, it’s vital to finish due diligence earlier than making any funding choices.
It is also essential for buyers to maintain their objectives in thoughts when selecting their investing methodology. There are a lot of components to contemplate when selecting a dealer, in addition to when taking a look at investing apps — a number of of those embrace the dealer or app’s fame, their charge construction and funding model.
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Securities Disclosure: I, Georgia Williams, maintain no direct funding curiosity in any firm talked about on this article.
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