Top 5 ASX Lithium Stocks (Updated May 2023)

1. Liontown Resources

Year-to-date gain: 102.23 percent; market cap: AU$5.96 billion; current share price: AU$2.72

Liontown Resources (ASX:LTR) is constructing its Kathleen Valley lithium project, which is expected to begin production in mid-2024. The company commenced open-pit mining operations with the first blast at Kathleen Valley on February 3. The material generated from this phase of operations will help with multiple aspects of construction, commissioning and ramp up.

Liontown’s share price rocketed upwards from AU$1.53 to AU$2.57 on March 28, when the company rejected another takeover bid from lithium major Albemarle (NYSE:ALB). The newest offer was at a price per share of AU$2.50; Liontown had previously rejected offers of C$2.20 and C$2.35 from the company.

The company released its March quarterly activities report on April 28, in which it discusses multiple milestones and details its progress at Kathleen Valley. Its share price has continued upwards since its late March jump, hitting a year-to-date high of AU$2.85 on May 8.

2. Latin Resources

Year-to-date gain: 36.36 percent; market cap: AU$316.04 million; current share price: AU$0.135

Latin Resources (ASX:LRS) is focused on exploring its lithium projects in South America: the Salinas pegmatite project in Brazil’s Aracuai lithium province and the Catamarca pegmatite project in Argentina.

In January, Latin Resources began a 65,000 metre diamond drilling program at the Colina and Colina West deposits, which are part of the Salinas project in Minas Gerais state. The company acquired a package of tenements covering 29,940 hectares in the Aracuai province in February, expanding its Salinas project significantly.

At the end of March, Latin Resources signed a memorandum of understanding with two Minas Gerais state government entities that will help the company as it develops Salinas and support building a lithium battery sector in the state. The government has designated Salinas as a priority project.

Latin Resources’ share price saw upward momentum in April. On April 19, the company said it had received commitments from multiple entities, including North American battery metals funds, for a AU$37.1 million placement. Latin Resources’ share price continued to gain when the company appointed Mitchell Thomas as CFO and vice president of operations and Tony Greenaway as vice president of operations — Americas.

Latin Resources’ most recent news was high-grade results from its diamond drilling at Colina, which drove the company’s share price to further heights, reaching a year-to-date high of C$0.145 on May 4.

3. Essential Metals

Year-to-date gain: 34.85 percent; market cap: AU$115.05 million; current share price: AU$0.445

Essential Metals (ASX:ESS) is a lithium-focused company with its flagship Pioneer Dome lithium project in Western Australia, near Kalgoorlie. The company has two gold projects in that region as well.

Essential’s share price spiked to AU$0.48 early in the year, when the company announced on January 9 that it had entered into a scheme of arrangement with Tianqi Lithium Energy Australia (TLEA), a joint venture between Tianqi Lithium (OTC Pink:TQLCF,SZSE:002466) and IGO (ASX:IGO,OTC Pink:IPDGF). TLEA was looking to acquire 100 percent of Essential for AU$0.50 per share; Essential's board unanimously recommended the deal, and set an April 20 date for a shareholder vote. Essential was trading at AU$0.345 the day before the announcement, and it passed AU$0.50 in the following days.

With regards to progress made at Pioneer Dome, on February 6 Essential announced that a scoping study for the project’s Dome North area “demonstrates the potential viability of a standalone mining and processing operation,” which the company believes supports moving towards more detailed studies. Two weeks later, it was granted a 21 year mining licence for the Dome North mineral resource.

In March, Essential released its half-year report for the period ended December 31, 2022, and just over a month later it put out its report for the March quarter.

Although the company’s share price jumped to a year-to-date high of C$0.58 following the quarterly release, it was actually Mineral Resources’ (ASX:MIN,OTC Pink:MALRF) surprise purchase of a 19.55 percent interest in Essential that drove the rally.

A week after its nearly 20 percent interest acquisition, Mineral Resources used its rights to block the scheme between TLEA and Essential Metals. Enough shareholders — including Mineral Resources — ultimately voted against the scheme, resulting in its termination. Essential’s share price has since fallen to sit around C$0.43.

4. Critical Resources

Year-to-date gain: 28.57 percent; market cap: AU$78.14 million; current share price: AU$0.054

Critical Resources (ASX:CRR) is a lithium and base metals exploration and development company focused on its Mavis Lake lithium project in Ontario, Canada; its goal is to support the North American electric vehicle supply chain. According to Critical Resources, its 2022 drilling at Mavis Lake “delivered some of the highest lithium assay results reported by any ASX listed hard-rock lithium company.” The company is following that up in 2023 with a 20,000 metre diamond drill program at the project.

Critical Resources has continued its metallurgical test work program this year, and on January 23 produced its first concentrate. Company shares rose significantly on this news, climbing from AU$0.043 the prior trading day to ultimately peak at AU$0.063 on February 2. While the company’s share price has trended down in the latter half of Q1, it jumped again on March 27 assays that show “significant intercepts of high-grade lithium mineralisation” at the Main zone.

On April 3, Critical Resources announced the conclusion of its metallurgical testing. The testing created spodumene products from two composites, one representative grade and one high grade; the former achieved a product grading 6.02 percent lithium oxide with a 77.6 percent recovery, and the latter graded 5.98 percent with recovery of 87.3 percent.

Critical Resources’ share price spiked again in early May, reaching AU$0.54 just before the release of its maiden inferred mineral resource estimate of 8 million tonnes at 1.07 percent lithium oxide. The company will be using the estimate for its scoping study, which will also take into account the metallurgical test work.

5. European Lithium

Year-to-date gain: 26.67 percent; market cap: AU$138.5 million; current share price: AU$0.095

European Lithium (ASX:EUR) is developing its Wolfsberg lithium project in Austria, which is expected to enter production of lithium hydroxide in Q1 2025. According to its recent definitive feasibility study, the project has an anticipated lithium hydroxide production profile of 8,800 tonnes per year over 14.6 years.

The company entered into a business combination agreement with special purpose acquisition company Sizzle, which is expected to complete in Q2. European Lithium will combine its Wolfsberg project with Sizzle to form Critical Metals, which will be listed on the NASDAQ, and European Lithium will receive US$750 million in shares for the resultant entity.

In January, the company’s share price jumped when it signed a memorandum of understanding for a joint venture partnership with Obeikan Investment Group to build a lithium hydroxide plant in Saudi Arabia. The plan is for a 50/50 joint venture in which the two companies will be co-developers and co-operators of the plant.

In late March, European Lithium’s share price began to climb in earnest when it acquired three new lithium projects in Austria that are in an area adjacent to Wolfsberg. The company plans to focus on exploring and developing its new assets, alongside its exploration projects in Ukraine, following the merger. Its share price hit a year-to-date high of AU$0.10 on May 10.