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Lithium Investing
3 Best-performing ASX Lithium Stocks of 2024
Jan. 02, 2025 01:50PM PST
The lithium sector regained some stability in 2024, but oversupply continues to weigh on the market. These three ASX-listed stocks saw the biggest gains despite headwinds.
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Global demand for lithium presents a significant opportunity for Australia, the world's top lithium producer.
Australia’s abundant lithium reserves and strong output position it as a key player in the battery value chain into the 2030s. However, rapid electric vehicle (EV) market growth has driven increased mining, leading to a global surplus.
Against that backdrop, the lithium market experienced significant upheaval in 2024, with oversupply and weaker-than-expected EV demand driving a 22 percent drop in lithium carbonate prices.
The year began with a supply glut weighing heavily on prices, which briefly rose in March before resuming their decline. Analysts project a continued lithium surplus into 2025, despite production cuts and project delays.
While Chinese EV sales hit record highs late in the year, geopolitical tensions — including tariffs and potential US policy changes — added uncertainty to the global lithium landscape, leaving the market in a prolonged low-price environment.
Here the Investing News Network looks at the top three ASX-listed lithium companies by year-to-date gains. The list below was generated using TradingView’s stock screener on December 31, 2024, and includes companies that had market caps above AU$10 million at that time. Read on to learn more about their activities over the past year.
1. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 84.48 percent
Market cap: AU$1.19 billion
Share price: AU$5.35
Europe-focused Vulcan Energy Resources aims to support a carbon-neutral future by producing lithium and renewable energy from geothermal brine. The company is currently developing the Zero Carbon lithium project in Germany's Upper Rhine Valley. Vulcan is utilising a proprietary alumina-based adsorbent-type direct lithium extraction (DLE) process to produce lithium with an end goal of supplying sustainable lithium for the European EV market.
On April 11, Vulcan announced the commencement of lithium chloride production at its lithium extraction optimisation plant in Germany. According to the company, the milestone marks the first lithium chemical production in Europe using local supply. The plant has consistently exhibited over 90 percent lithium extraction efficiency.
The company already has binding lithium offtake agreements in place with major automakers and battery manufacturers, and expects to supply enough lithium for 500,000 EVs during the first phase of production.
During Q3, Vulcan received its first licences for lithium and geothermal exploration in Alsace, France. The permits cover 463 square kilometres, expanding Vulcan's total licenced area in the Upper Rhine Valley to 2,234 square kilometres.
In early August, Vulcan began commissioning its downstream lithium hydroxide optimisation plant (CLEOP) near Frankfurt, Germany, which will process the lithium chloride concentrate from its DLE plant.
A mid-October release from Vulcan outlines a memorandum of understanding with industrial software designer AVEVA. The partnership will see AVEVA build a digital framework for Vulcan’s Zero Carbon lithium project.
Also in October, the company earned S&P Global’s highest "dark green" sustainability rating, a first for the mining sector, under its Green Financing Framework. On November 8, Vulcan announced 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 Climate Protection and the European Recovery and Resilience Facility.
To end the year, Vulcan announced the signing of a AU$1.45 billion conditional debt commitment letter with Export Finance Australia and a group of seven commercial banks.
2. Ioneer (ASX:INR)
Year-to-date gain: 6.67 percent
Market cap: AU$353.35 million
Share price: AU$0.16
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron project in Nevada, US. According to the company, the project is considered the “sole lithium-boron deposit in North America.”
As part of the permitting process for Rhyolite Ridge, Ioneer completed and submitted an administrative draft environmental impact statement (EIS) to the US Bureau of Land Management (BLM) in mid-January. In mid-September, Ioneer announced that the BLM had published the final EIS, moving the company closer to construction.
The comprehensive review process addressed environmental concerns, particularly regarding the protection of the endangered Tiehm's buckwheat plant found at the site. Ioneer has committed to measures aimed at safeguarding the plant's habitat. In October, Ioneer secured final federal approval for Rhyolite Ridge.
The project became the first US lithium mine authorised under the Biden administration.
Rhyolite Ridge is projected to produce sufficient lithium for approximately 370,000 EV batteries annually. Construction is slated to commence in 2025, with production expected by 2028.
3. Prospect Resources (ASX:PSC)
Year-to-date gain: 2.25 percent
Market cap: AU$52.03 million
Share price: AU$0.09
Africa-focused explorer Prospect Resources holds a diversified portfolio of assets in Zimbabwe, Zambia and Namibia. The company’s lithium prospects, Omaruru and Step Aside, are in Namibia and Zimbabwe, respectively.
In late June, Prospect released an update on its exploration activities, reporting strong assay results from Phase 4 diamond drilling at the Step Aside lithium project in Zimbabwe and follow-up Phase 2 drilling at the Omaruru lithium project. Managing Director Sam Hosack highlighted the significant mineralisation potential at both projects.
Moving forward, Prospect plans to slow down spending at its lithium projects as it turns to its newly acquired Mumbezhi copper project in Zambia. The company believes it can monetise Step Aside in the near term to aid in this goal.
In its June quarterly results, Prospect noted the completion of drilling and fieldwork for a Phase 4 diamond drilling program at the Step Aside lithium project in Zimbabwe, with no further exploration planned.
The project is being prepared for sale to help fund the Mumbezhi copper project.
Meanwhile, Phase 2 drilling at the Omaruru lithium project is complete, and the company has reduced spending to holding costs as its focus shifts to the Mumbezhi project.
In its September quarterly report, Prospect said it was discontinuing its Bikita Gem earn-in project in Southeastern Zimbabwe after drilling results failed to identify economically viable volumes of petalite-rich lithium mineralisation.
FAQs for investing in lithium
What is lithium?
Lithium is the lightest metal on the periodic table, and it is used in a wide variety of applications, including lithium-ion batteries, pharmaceuticals and industrial applications like glass and steel.
How do lithium-ion batteries work?
Rechargeable lithium-ion batteries work by using the flow of lithium ions in the battery's cell to power a device.
A lithium-ion battery has one or more cells, depending on the amount of energy storage it is capable of, and each cell has a positive electrode and negative electrode with an electrolyte separating them. When the battery is in use, lithium ions flow from the negative electrode to the positive electrode, running out of power once all have transferred. When the battery is charging, ions flow the opposite way.
Where is lithium mined?
Lithium is mined from two types of deposits, hard rock and evaporated brines. Most of the world's lithium production comes out of Australia, which hosts the Greenbushes hard-rock lithium mine. The next-largest producing country is Chile, which like Argentina and Bolivia is located in South America's Lithium Triangle.
Lithium in this famed area comes from evaporated brines, including the Salar de Atacama. Lithium can also be found in sedimentary deposits, but currently none are producing.
Where is lithium found in Australia?
Australia is the world’s top producer of lithium, and its lithium mines are all located in Western Australia except for one, which is Core Lithium’s (ASX:CXO,OTC Pink:CXOXF) Finniss mine in the Northern Territory. Western Australia accounts for around half of global lithium production, and the state is looking to become a hub for critical elements.
Who owns lithium mines in Australia?
Several companies own lithium mines in Australia, including some of the biggest ASX lithium stocks. In addition to the entities discussed above, others include: Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) with its Pilgangoora operations; Arcadium Lithium with the Mount Cattlin mine; Jiangxi Ganfeng Lithium (HKEX:0358), which owns the Mount Marion mine alongside Mineral Resources (ASX:MIN,OTC Pink:MALRF); and Tianqi Lithium (SZSE:002466), which is a partial owner of Greenbushes via its stake in operator Talison Lithium.
Who is Australia’s largest lithium producer?
Australia’s largest lithium producer is Albemarle (NYSE:ALB), which has interests in both the Greenbushes and Wodgina hard-rock lithium mines. Greenbushes is the world’s largest lithium mine, and Albemarle holds 49 percent ownership of operator Talison Lithium’s parent company.
Albermarle also has 60 percent ownership of Mineral Resources’ Wodgina mine, and owns the Kemerton lithium production facility as part of a 60/40 joint venture with Mineral Resources.
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Securities Disclosure: I, Georgia Williams, currently hold no direct investment interest in any company mentioned in this article.
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