Top ASX Lithium Stocks for 2023: Electrifying Investment Opportunities

Team Veye | 28-Jul-2023 lithium stocks asx

Lithium plays an important role in the transition to renewable energy, and demand for the battery metal remains strong because of the shift to clean energy and Electric vehicle. Most of Australia's lithium resources have prospects in Western Australia, and the world’s largest hard rock lithium mine, i.e., ‘Greenbushes’ is situated in the WA region of Australia, grading with fifty percentage spodumene; this makes the highest grade lithium resources in the whole world at 3.9% Lithium Oxide mineral reserves and 3.5% Lithium Oxide mineral resources as against one to two percentage Lithium Oxide for other lithium deposits. Its mineral reserve is very specific, grading fifty percentage Spodumene where robust lithium deposits are available. Lithium mined in Australia comes mainly from spodumene, though it is present in other minerals also, such as ‘lepidolite’.

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What are the Best ASX lithium Companies Listed On the ASX?

  • Pilbara Minerals (ASX: PLS)
  • Core Lithium (ASX: CXO)
  • Sayona Mining (ASX: SYA)
  • Mineral Resources (ASX: MIN)
  • Liontown Resources (ASX: LTR)
  • Allkem (ASX: AKE)

Lithium prices have gone up significantly in the recent past due to their increasing demand, which has invoked optimism in investors’ minds for ASX Lithium shares in Australia. The long-term fundamentals for Lithium remain strong, with electric vehicles in trend. There are very few undervalued lithium shares that potentially offer attractive buying opportunities.

Best Lithium Stocks to Watch on the ASX?

The Electrical vehicle productions are rising constantly given the fact that it plays vital role in the carbon neutral theme, which in turn is growing the demand for Lithium.

Investors are looking forward for good buying opportunities in ASX listed lithium shares to take advantage from the share price rise,

Pilbara Minerals (ASX: PLS) is the best stock to watch for a long-term view.

Top Lithium Penny Stocks ASX

The penny stocks are highly deviated and risky too, although there are some good penny stocks available at a good buying price with a high possibility of a share price rise. The penny stocks are normally suitable for traders for trading purposes only.

The few penny ASX listed lithium shares that are valuable to add to the portfolio are as follows:

  • MinRex Resources (ASX: MRR)
  • Castle Minerals Limited (ASX: CDT)
  • Hancock &Gore (ASX: HGH)

Investing in ASX Lithium Shares?

Australia is well known for its production of lithium in the whole world, and investing in lithium shares is growing fast as the global demand for lithium has increased in the recent past due to the electrical vehicle market. Most of the stocks on the top five lists are big companies, especially in mining, with future potential for exponential gains in the share price in the long run. The lithium companies are positioning for a better outlook in the future. Moderately risk-averse investors may take a chance by investing in ASX lithium shares to benefit in the long term.

Pros of Investing in ASX Lithium Shares?

Most of the ASX listed lithium stocks, specifically blue-chip stocks, provide opportunities for a good buy as the share price are expected to rise in the long run. ASX-listed lithium shares that operate in lithium exploration and mining provide a better outlook, as Lithium is a valuable commodity with many applications, mainly used in the batteries. It is a key component in lithium-ion batteries and Electrical vehicles. Lithium prices are also increasing due to increased demand for lithium ion batteries.

What are the largest ASX lithium companies?

Here is a detailed explanation of the biggest lithium companies by market capitalization.

Lithium has been considered a key material in Australia. The initial growth in demand has been due to the increasing usage of lithium-ion batteries in Electric vehicles. Australia contains massive hard rock and pegmatite-lithium resources, mainly in Western Australia, which are assumed to be adequate to meet market needs. Lithium has many applications, from chemical to technical. It is available in various other forms, such as lithium carbonate and lithium hydroxide, which are used in many ways, for instance, in lubricants, pharmaceuticals, and lithium batteries.

Lithium prices have spiked significantly in the recent past, which has catalyzed positive investor sentiment for ASX Lithium shares. The long-term fundamentals for Lithium remain strong, as demand is gradually increasing in the electrical vehicle market.

Rio Tinto Limited (ASX: RIO)

Rio Tinto Limited (ASX: RIO) is mainly engaged in the production of materials and metals through exploration, development, production, and processing.

The Company's main division of functions is iron ore, Aluminum, copper, and Minerals. RIO invests in hard rock lithium in Western Australia through a strategic partnership.

The Jadar Lithium Project is the largest project Rio Tinto Limited is undertaking. The company is significantly focused on Battery materials.

Pilbara Minerals Limited (ASX: PLS);

Pilbara Minerals Limited (ASX: PLS) is a lithium company operating in exploration, development, and mining in Australia.

It owns a world-class Pilgangoora hard-rock lithium operation situated in the resource-rich Pilbara region, approximately in Western Australia.

It has the potential to deliver significant premium-quality ‘spodumene’ to meet the needs of the market. Pilbara Mineral has a strategic role for growth and diversification to take the lead as a sustainable, optimal-cost lithium producer and fully integrated lithium raw materials and chemicals supplier in the future.

Mineral Resources (ASX: MIN);

Mineral Resources (ASX: MIN) engaged in a mining activities on the iron and hard-core Lithium operation in Western Australia. The company serves with high-grade, low-cost mining, construction, and infrastructure services in Australia.

Mineral Resources and Albemarle together maintain a great joint venture partnership in the world class ‘Wodgina lithium mine. The company is committed to grow its business through the flexibility to explore and produce to meet the need of the market demand.

The company is constantly putting effort to strategically deal with the Government to create a cost completive environment in Australia

Allkem Limited (ASX: AKE)  

Allkem Limited (ASX: AKE) is a lithium-based chemicals company with a diverse portfolio and high-grade Lithium chemicals. It has maintained a well-diversified portfolio that comprises lithium brine operations in Argentina and a hard-rock lithium operation in Australia.

Allkem Limited and Livent recently reported an agreement signed for the merger deal, valuing the combined company at $15.7 billion. ‘Allkem’ and ‘Livent’ to become a global integrated Lithium chemicals producer

The company’s development is rightly on a progressive path across the world to increase international presence and product flexibility to meet significant projected demand growth that is underpinned by the world's transition to a net-zero carbon future.

Liontown Resources (ASX: LTR);

Liontown Resources (ASX: LTR) is an emerging exploration and Tier-1 battery mineral producer. The company has a goal to become a leader and a globally significant provider of battery minerals for the fastest-growing clean energy market. The transition from explorer to producer requires the company to incorporate the right approach and foundation from the outset, and ESG principles underpin all decisions.

The company received an award for the Spodumene and DSO haulage services contract for the ‘Kathleen Valley Lithium Project from integrated logistics solutions provider, Qube Holdings Limited on 19 July 2023.

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Frequently Asked Questions (FAQ)

What is the best lithium company to buy in Australia right now?

Pilbara Minerals (ASX: PLS) is the best company that has been well positioned for the global energy transformation as a low-cost, long-term, sustainable lithium producer with prospects for a long-term value buy.

Which ASX lithium stock offers the best value?

Liontown Resources (ASX: LTR) has a market capitalization of $6.17 billion and a share price of $2.80. The company targets a position as a global leader and, to take advantage of the market opportunity, has affirmed that it will provide critical battery minerals to meet the market need. With a ROE of 17% and a 5-year average monthly beta of 1.99, the stock has gained massively by 137% in a 1-year return, and the strong fundamentals of the lithium company set the stage for a value-buy holding for a long-term period.

Which company is the largest lithium producer ASX?

Rio Tinto (ASX: RIO) is the largest company engaged in lithium operations, holding a market capitalization of $42.78 billion, placing it in the second position. Pilbara Minerals (ASX: PLS) is another valuable company with a market capitalization of $13.76 billion.

Which ASX lithium stocks come with dividends?

Major companies, such as Rio Tinto (ASX: RIO); Pilbara Minerals (ASX: PLS), have a better track record of dividend distribution.

Should I buy lithium Australia shares?

The Australian shares provide great opportunity due to lithium’s valuable properties for EV manufacturing demand in a rising scenario; however, lithium stocks are volatile and risky in the short term.

Will lithium stocks go up 2023?

As the demand for lithium is booming and ASX lithium stocks are ready to move, the positive aspects of lithium provide a potential future in the long run rather than a short-term opportunity.

Where in Australia is lithium mined?

There are several companies mining and exploring lithium in Western Australia, mainly.

What are some good lithium ETFs to invest in?

There is only one ASX lithium ETF, i.e., the Global X Battery Tech Lithium ETF (ASX: ACDC), which implies capital allocation in lithium, mining, refinement, and batteries


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