Top 5 ASX Lithium Stocks (Updated August 2022)

1. Core Lithium

Year-to-date gain: 133.33 percent; market capitalisation: AU$2.35 billion; current share price: AU$1.40

According to Core Lithium (ASX:CXO), its Finniss lithium project in the Northern Territory is “one of Australia’s most capital-efficient and lowest-cost spodumene lithium projects.” First production is expected in the fourth quarter of 2022, and the company already has multiple four year offtake agreements in place with Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460) and Sichuan Yahua Industrial Group (SZSE:002497).

On March 1, Core Lithium announced a four year offtake arrangement with Tesla (NASDAQ:TSLA) for up to 110,000 tonnes of lithium oxide spodumene concentrate from Finniss. Shares saw a spike at the beginning of April following the release of an update on exploration at its Finniss project, and Core hit a year-to-date high of AU$1.60 on April 4. A week later, the company announced that it was acquiring the Shoobridge lithium project near Finniss.

After releasing multiple exploration updates at Finniss throughout the year, the company shared in July that the mineral resource estimate for Finniss had increased by 28 percent to 18.9 million MT at 1.32 percent Li2O. Since then, the company has released further drill results for the BP33 drill hole at Finniss. A sample includes 16 metres at 2.27 percent Li2O, which the company said is “world class.”

In August, Core appointed Gareth Manderson, who has 28 years of experience in the mining industry, as CEO. Later that month, on August 15, it released a wide-ranging exploration update for its various projects. The same day, Core's share price climbed to a year-to-date high of AU$1.62.

2. Sayona Mining

Year-to-date gain: 123.08 percent; market capitalisation: AU$3.05 billion; current share price: AU$0.29

Sayona Mining (ASX:SYA) is a lithium producer working in Canada and Australia. Alongside Piedmont Lithium (ASX:PLL,NASDAQ:PLL), its strategic partner, the company has acquired North American Lithium, which had a pre-existing lithium mine and concentrator in Quebec, Canada. Sayona has two assets nearby, the Authier and Tansim lithium projects, and it intends to create a Quebec lithium hub to feed the battery supply chain. The company has further lithium projects in Western Australia’s Pilbara region, and it is exploring for gold.

Sayona's share price shot up on April 4 on news that testing of lithium spodumene product from the Authier project shows that it “performs as well as commercially available battery-grade lithium hydroxide.” It continued to climb, reaching a year-to-date high of AU$0.38 on April 19 before beginning to trend back downwards. In late April, the company announced the discovery of a lithium pegmatite zone at the Moblan project.

Sayona has spent the last few months continuing to build up towards the start of production at North American Lithium, including a AU$190 million institutional placement and the building of the team for the project. Sayona and Piedmont approved the restart plan on June 28. As of August 4, 30 percent of plant and equipment upgrades were complete, and first production is anticipated for the first quarter of 2023. The company’s share price has moved back up throughout this news, reaching a Q3 peak of AU$0.30.

3. Xantippe Resources

Year-to-date gain: 80 percent; market capitalisation: AU$73.13 million; current share price: AU$0.009

Xantippe Resources (ASX:XTC) is developing its Carachi lithium project in Argentina after pivoting to focus on what it calls the lithium super trend. The company’s goal is to provide high-purity, battery-quality lithium, and it is acquiring multiple tenements in the Lithium Triangle to accomplish that goal. Xantippe’s land package is located near Lake Resources’ (ASX:LAC,OTCQB:LLKKF) Kachi lithium project. In addition, the company has its Southern Cross gold project in Western Australia, which it is investigating for lithium-bearing pegmatites.

In 2022, Xantippe exercised its option to acquire Carolina Lithium, which gave it access to the Carachi Pampa project. Additionally, it has exercised its options to acquire the Rita and Rita 1 tenements, the La Sofia tenement and the Luz Maria tenement, all expanding the company's footprint in the Lithium Triangle.

Xantippe's share price hit a year-to-date high of AU$0.015 in April. On June 14, Xantippe announced that it had increased its footprint of lithium brine tenements in the country from 12,400 to 21,900 hectares after obtaining options for four more land packages. Later in June, the company obtained exploration and prospecting licenses for the Southern Cross project. The company’s most recent news came on August 30, when it announced it would be conducting a vertical electrical sounding (VES) exploration program at Carachi; Xantippe aims to begin exploration drilling once it has the results of the VES program, as well as drilling permits.

4. Global Lithium

Year-to-date gain: 76.88 percent; market capitalisation: AU$346.95 million; current share price: AU$1.76

Global Lithium (ASX:GL1) is focused on its 100 percent owned Marble Bar lithium project, which is located in Western Australia’s North Pilbara Craton; the project’s Archer deposit has been the primary exploration target. Global Lithium acquired an 80 percent interest in the Manna lithium project from Breaker Resources (ASX:BRB) in December 2021, and the two companies plan to work together on exploration at the project in 2022.

On March 3, Global Lithium signed a 10 year offtake deal for spodumene concentrate with Suzhou TA&A Ultra Clean Technology (SZSE:300309), its largest shareholder. Suzhou TA&A intends to help with construction funding as well. In late March, the company provided an exploration update on its Marble Bar and Manna lithium projects. The company’s share price rose following the financial report’s release, and hit a year-to-date high of AU$2.73 on April 4. Following that peak, Global Lithium’s share price trended downwards for the rest of Q2.

The company commenced diamond drilling at the Manna project in June, and it has received positive exploration results from its previous drilling at the site as well. Most significantly, on July 21 the company announced that its drilling had discovered “significant lithium bearing pegmatites,” and that diamond drilling had confirmed that the pegmatites extend 150 metres down dip beyond the current resource. Following the news, the company’s share price began to rise again, moving from AU$1.10 to AU$1.95 by August 15. During that time, assays from reverse-circulation drilling at the site were released, showing intercepts including 24 metres at 1.03 percent Li2O.

With regards to its Marble Bar project, the company has identified a new lithium-bearing pegmatite at the site, which it dubbed the Lantern prospect. Additionally, metallurgical test work from samples taken at the project show results including 5.9 percent Li2O spodumene concentrate with lithium recoveries of up to 76 percent.

5. Morella

Year-to-date gain: 44.44 percent; market capitalisation: AU$141.91 million; current share price: AU$0.026

Morella (ASX:1MC) is an explorer and developer focused on battery metals, with lithium as its primary target. The company has an earn-in agreement with Sayona Mining to gain a 51 percent interest in the lithium rights of the latter’s Pilbara and Gascoyne lithium portfolio. Morella is currently focused on the Mallina lithium project in Western Australia. In addition to that deal, Morella also has an earn-in option agreement with Lithium Corporation (OTCQB:LTUM) to earn a 60 percent interest in the Fish Lake Valley lithium project in Nevada, US; more recently, Morella signed an earn-in option agreement for Lithium Corporation’s North Big Smoky project, also in Nevada.

In mid-March, Morella completed the necessary environmental, social and governance steps before beginning a drill program at Mallina; it started drilling a week later. The company’s share price came to a year-to-date high of AU$0.039 on April 4. Reverse-circulation and diamond core drilling at the site concluded in June.

Morella has also continued to give focus to Fish Lake Valley in 2022, increasing its project area by 60 percent and identifying new drill targets. In mid-July, the company announced it had achieved its first earn-in milestone at Fish Lake Valley ahead of schedule. Most recently, the company identified new targets at the project following magnetotelluric surveying at the site.