Some have described the best ASX Lithium stock 2022 as “the future of gasoline” and “the new petroleum,” For justification, battery usage and production are increasing rapidly and can transform how we run our lives in the next couple of years.
Many investors are focused on the most prominent companies in electric cars (like Tesla Motors (NASDAQ: TSL) and Panasonic).
Let’s look at Australia’s Top 5 ASX Lithium Stocks to buy in 2022.
Five Best ASX lithium stocks for 2022 Lithium stocks will likely explode in 2022or 2023.
Lithium stocks go changing daily. However, it is an investment in the long run. There are five most desirable Australian lithium-based stocks on ASX that are definitely worth your money in 2022, and I’ve described them all in detail and the reasons to invest in these lithium stocks.
1. Lake Resources Ltd (ASX: LKE)
This is our top choice for 2022. It’s possible to increase by quite a bit if it becomes the next lithium producer to be launched, following Galaxy Resources, Pilbara Minerals, and Altura Mining. The company recently signed an offtake deal with German special chemicals firm LXESS AG (ETR LXS); LKE is likely to be recognized as a serious company in the marketplace. LKE is a lithium-based company that was founded in 2005. However, they were under the radar for a while until the beginning of 2018. In 2012, the management was forced to sell its assets when it became clear that its brine extraction technology would not be commercialized shortly.
In 2017, LKE successfully raised $8 million in AU and purchased back the brine assets that were initially purchased. Brine extraction is precisely what OTOCORB has done, and it’s today one of the largest lithium producers, with a market capitalization of AU$1.24b. In 2018, LKE purchased another brine-producing asset close to Greenbushes in WA for $6 million AU. They have signed an agreement to take off with the division from LXESS AG (ETR LXS), a German specialty chemicals firm. LIKE operates as a medium-tier manufacturer with around one hundred tonnes in LCE production annually starting in 2020.
In our view, LKE has not been sufficiently praised by the market. It is highly undervalued as a company with many catalysts in the near term. This is why we believe that LKE is an excellent investment in 2022.
2. Core Lithium (ASX: CXO)
The idea of investing your money into CXO could be a fantastic alternative due to the return you will earn. The reason is that when you analyze CXO’s business finances, it will be evident that it is growing quarter after quarter each year. Therefore, if you decide to invest your money now, you are likely to see that over the coming years, the investment you made will be increased in size.
CXO’s share price is USD 1.35. You’ve noticed a tremendous increase in the company’s stock when you write this. It’s growing daily, and enormous gains are expected by 2022 due to its vast projects. Investors will not just be able to make good profits right now but also shortly by investing in CXO.
3. Lithium Australia (ASX: LIT)
LIT is a lithium stock that could be an excellent investment for investors. It has recently purchased two new projects: two in Australia and the other in Canada, both of which potentially increase the company’s output by more than a third. The company’s journey began in 2005 when LIT was called ADX. In 2010, it changed its name to Lithium Australia NL and started investigating lithium within Canada under the direction of Dr. James Nelson from the University of British Columbia. LIT began exploring possibilities in Australia and buying Jervois Mining Ltd, which focuses exclusively on the rock industry with just one asset.
The company additionally has an estimated market cap of approximately $1 billion. In 2013, however, the company’s fortunes changed after it bought PLS. In the name of Galaxy Resources Ltd, PLS Project is owned by the mining magnate Clive Palmer. The project includes a substantial portion of the country’s lithium resources and approximately half of the world’s Spodumene resources.
In 2014, LIT made further progress when it bought its major project within Lake Taldy, Queensland, from Mineral Deposits Limited. This project is a rock lithium deposit, one of the most acceptable hard rock lithium deposits currently being investigated across Australia and North America.
The project could potentially achieve an average output of 400.000mt and is at a high phase of its development. The project could be developed in phases, with the first phase beginning in 2020. In addition, LIT recently made its most recent acquisitions by acquiring Lithium Power International Limited (Lithium Power) and e-Cobalt Solutions Inc. (e-Cobalt).
4. Arizona lithium (ASX: ASL)
Our new selection for the top lithium shares to purchase by 2022 Arizona lithium (ASX: AZL)This company has been performing very well over this month’s last few months, with a 52-week maximum of $0.20 and a 52-week lowest of $0.04. It was founded in 1969. (you can believe the company). Based on the current valuation, the fair value of this share is at $0.21 as per Morningstar Quantitative; however, some predictions suggest it will likely be $1AUD.
Our estimate for the company’s price is approximately AUD 0.38 by the close of 2022. The current AZL share cost is $0.16AUD
5. Global Lithium (ASX: GL1)
GL1 is a second exploration company currently concentrating on its Marble Bar Lithium project. The company holds 100 percent of this project and is located in the north Pilbara Craton in Western Australia. Another project for which GL1 has the majority of its shares is The Manna project by Breaker Resources. Both companies are involved in this project, which will be completed in 2022. GL1 is also negotiating a contract for Spodumene concentration in conjunction with Suzhou TA&A Ultra Clean Technology for ten years from 03 March 2022.
The current price of GL1 shares is USD 1.75, with a 52-week highest of $2.79 in AUD and a 52week minimum of 0.24AUD. According to Morningstar, its fair price for GL1 is USD 2.84. You can then ask you are deciding whether joining this company at this rate is worth the money or not.
Are lithium stocks likely to rise?
Yes, lithium prices will rise due to a myriad of reasons, including the growing demand for lithium for electric vehicles, which will require lithium to be utilized as the primary material for making batteries. In addition to automobiles, lithium is in high demand in the medical field. This constant demand means that medicines are required constantly, so the need for lithium will never cease.
Should I buy lithium stocks?
You must diversify your portfolio by investing in lithium-related companies and ETFs with lithium investments.
Lithium demand is growing daily, and according to many analysis firms, lithium demand is expected to be about 2 million tonnes in 2030.
As you are aware, lithium is being utilized to make battery batteries, demand for electric cars is rising, and the need for lithium is also expected to grow.
In addition to the top lithium shares above, keep an eye on the below, and you will see enormous gains in 2022.
List of mining companies that mine lithium in Australia
| Lithium companies | ASX code |
| AVZ Minerals | AVZ |
| Core Lithium | CXO |
| Lake resources | LKE |
| Liontown Resources | LTR |
| Mineral Resources | MIN |
| Orocobre Limited | ORE |
| Piedmont Lithium | PLL |
| Pilbara Minerals | PLS |
| Vulcan Energy | VUL |
| Global lithium | GL1 |
Small Cap lithium stocks ASX
- METALS AUSTRALIA (ASX:MLS)
- SHREE MINERALS (ASX: SHH)
- TAMBOURA METALS (ASX: TMB)
- BRYAN RESOURCES (ASX: BYH)
The above stocks are closely linked to lithium mining exploration, so we chose the above supplies to be the Best Australian lithium shares, with a market capitalization of less than 15 million. We recommend keeping these shares off the radar.
- Must Read: Differentialities in ordinary and preferential shares
- Must Read: Rivian stock price prediction
What does this YouTuber have to say about Lithium stocks?
FAQ
Should I purchase lithium Australia shares?
It is a good idea to purchase Australian lithium stocks for numerous reasons, including quality. Australian lithium is of the highest quality, which means it is sought-after because of its high quality. Production rates are huge for Aussie mines of lithium. So, they can extract lithium quickly, sell it rapidly in the marketplace, and generate profits quickly. Therefore, they have a higher chance that Australian lithium-based shares will likely provide higher returns than other lithium stocks in other countries.
Which lithium stocks to purchase ASX?
The top lithium stocks to purchase on the ASX include:
1. Lake Resources Ltd (ASX: LKE)
2. Core Lithium (ASX: CXO)
3. Lithium Australia (ASX: LIT)
4. Arizona lithium (ASX: Arizona lithium (ASX:)
5. Global Lithium (ASX: GL1)
Why are lithium prices rising?
The primary reason the lithium share price rises is an increasing demand for lithium on the market. This is because the electric vehicle market is also growing, and in this world, lithium is the primary battery power source utilized in EVs.
How do I buy lithium stocks?
There are various ways to invest in lithium stocks, like investing in lithium mining and exploration companies directly, or you can purchase an ETF comprised of several lithium companies. To buy lithium shares within Australia, Commsec is the best option for those investing more than $500 in AUD, or if you would like to support less than $500, you can purchase the superhero trading platform.
Conclusion
Also, these are the top lithium stocks on the ASX in 2022 that you can consider investing in now 2022. There has been a lot of research conducted on them, and they have a great chance to grow not just in the present but in the near term. Also, if you select one today and wait until 2022’s end, your investment will grow faster than expected.