Lithium stocks continue to see strong demand, as prices soared in 2021. Lithium is a key component of the electric vehicle supply chain, which saw its market share triple over the last two years.
It is estimated that 6.5 million electric vehicles were sold globally in 2021, with the bulk of vehicle sales made in China & Europe. Lithium prices are up 35% YTD, and more than 300% over the last 12 months.
With prices of Lithium, Nickel, and Cobalt continuing to soar, Lithium stocks may provide a good investment opportunity over the next decade. Below we will present our top lithium stocks to watch for 2022 and the years ahead.
Lithium Stocks List:
- Lithium Americas Corporation
- Sociedad Quimica y Minera de Chile
- Albemarle Corporation
- Rock Tech Lithium
- Sigma Lithium Corporation
Lithium Americas Corporation (NYSE: LAC)
If you have done any preliminary research on lithium mining stocks, chances are you may have heard of Lithium Americas Corporation. They are a Canadian Lithium mining company focused on developing low-cost and large scale lithium production.
Lithium America’s 100% owned thacker project located in Humboldt County, Nevada is currently the largest known lithium resource in the United States. This operation has a lifespan of roughly 46 years.
On August 27, 2020 Lithium Americas Corporation announced the completion of the Cauchari-Olaroz JV transaction. This transaction is a part of LAC’s joint venture with Ganfeng Lithium, Minera Exar S.A. LAC will own 49% of the mining operation, in addition to receiving $4OM USD in cash considerations from Ganfeng Lithium.
More recently, the company announced the acquisition of Millennial Lithium (TSX.V: ML), its flagship Lithium Brine project located in Pastos Grandes, in Salta, Argentina. With one of the largest Lithium mining operations in the United States, and rising demand for Lithium brine, hydroxide and carbonate, LAC is a top Lithium stock to watch in 2022.
Sociedad Quimica y Minera de Chile (NYSE: SQM)
SQM is a Chilean global mining company located in Northern Chile. Founded in 1968, the company is a global leader in their respective markets: plant nutrients, iodine, lithium and industrial chemicals.
SQM is the world’s largest lithium producer. Its main production facilities located in the Atacama Desert in Tarapacá and Antofagasta regions. It is estimated that SQM produced 72.2 metric tons of Lithium carbonate in 2020 at their Salar de Atacama mine.
In 2016, SQM announced a 50/50 joint-venture with one of the leading lithium producers, Lithium Americas Corporation. In the joint-venture they invested $25 million, in exchange for a 50% ownership stake in Minera Exar S.A. (“Minera Exar”). Later, the stake was sold in 2018 to Jiangxi Ganfeng Lithium Co., Ltd.
SQM employs more than 10,000 people in Chile, around the world and is committed to sustainability. Their sustainability aspirations are built around 3 core principles: solutions for human progress, their people, and the natural environment. Furthermore, as global lithium demand continues to rise, SQM will be at the forefront.
Albemarle Corporation (NYSE: ALB)
Albemarle Corporation is a global producer of catalyst solutions and performance chemicals. They operate 3 divisions: lithium, bromine specialites and catalysts.
Albemarle is one of the largest lithium producers for electric vehicles batteries and are leading producers of flame retardant chemical technologies. They have a large line of antioxidants and blends, including the production of chemicals for large pharmaceutical companies.
Demand for lithium-ion batteries is growing at an exponential rate, in large part due to increasing demand for electric vehicles, mobile devices and grid storage. As such, Albemarle intends to capitalize on this demand as supply remains tight. Lithium has an array of applications and companies around the world are looking to meet this growing demand.
The extraction process for lithium is quite complex, and the ability to produce high concentrations of lithium carbonate or lithium hydroxide is quite lucrative. As Albemarle works to meet the growing demand for Lithium, investors should keep a close eye on the company in 2022.
Rock Tech Lithium (TSX.V: RCK)
Rock Tech Lithium is a Canadian lithium mining company focused on the development and manufacturing of low-cost, high grade lithium hydroxide. The company plans to build the world’s first proprietary lithium converter in Germany that will recycle lithium from used batteries.
On September 1st, 2021, the company announced the mobilization of its Georgia Lake drill program located in Ontario, Canada. The program will target a total of 7,800 meters over (5) deposits: Main Zone North, Main Zone South West, Conway, Harricana and Line 60. The Pre-Feasibility Study (‘’PEA’’) is expected to be completed in Q1 2022.
World’s First Lithium Converter
Rock Tech Lithium’s proprietary lithium converter will be built in Brandenburg, Germany. The planned investment for the project will be up to $470M Euros, with production expected to begin at the start of 2024. As a central component of Europe’s battery value chain, the site is expected to power around 500K vehicles per year.
Brandenburg’s Economics Minister Steinbach: “With Rock Tech Lithium, we are strengthening our position as the future center of European e-mobility.”
On October 18th, 2021, the company announced the results from their lithium hydroxide plant in Germany. Their pilot program in collaboration with Wave International produced lithium hydroxide monohydrate (BG-LHM) with purity greater than 95.5%.
Rock Tech Lithium is led by a strong management team, most notably Stefan Krause and Dirk Harbecke. Stefan Krause has more than 30 years of experience in the automotive industry at some of the world’s top companies. He was the former CFO of BMO Group, CFO of Deutsche Bank, and Co-Founder of Canoo.
Dirk Harbecke also has more than 25 years of experience as an entrepreneur and investor, where he worked for BCG and Co-Founded African Development Corporation (ADC). With bold plans for the rapidly growing lithium sector, Rock Tech Lithium remains a top lithium stock to watch for the years ahead.
Sigma Lithium Corporation (NASDAQ: SGML)
Sigma Lithium Corporation is a Canadian lithium mining company focused on the exploration and development of lithium deposits in Brazil’s Minas Gerais State. The company holds 27 mineral deposit rights in four properties spread over 19,000 hectares.
Sigma Lithium’s 100% owned Grota do Cirilo property is one of the largest hard rock deposits in the Americas.
Towards the end of 2021, the company announced the beginning of the construction and mobilization for their large scale production plant. The plant will be dedicated to providing environmentally friendly, high-purity lithium for the electric vehicle battery industry. Thereafter, the company plans to produce up to 220,000/t annually.
In phase 1 of production they will produce 33,000/t of lithium carbonate annually, based on their 2021 feasibility report. In phase 2 if warranted, they will produce up to 440,000/t annually.
On December 23rd, 2021, Sigma announced the closing of their private placement for gross proceeds of $136.7 million. BlackRock made a total investment of $64.2 million for approximately 5.5% of the company.
Sigma Lithium is well capitalized for the future to participate in the fast growing electric vehicle battery market. As a result, Sigma Lithium is a top lithium mining stock to keep on your radar in 2022.
Disclosure: The author holds no position in Sociedad Quimica y Minera de Chile, Albemarle Corporation, or Sigma Lithium Corporation. The author holds a position in Lithium Americas Corporation and Rock Tech Lithium Inc. Freedom Stocks has a disclosure policy.
