Top 5 ASX Lithium Stocks (Updated May 2022)

​1. Core Lithium​

Year-to-date gain: 110.17 percent; market capitalisation: AU$2.26 billion; current share price: AU$1.24

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 (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. A week later, the company shared results from a diamond drill program at its Carlton project, which is returning high-grade, spodumene-rich intersections. That news, coupled with the release of its half-year report the following day, led to a small share price spike for Core.

Shares saw a bigger bump at the beginning of April following the release of an update on exploration at the company's 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. In May, Core shared its final 2021 lithium assays, which include a highlight of 35 metres of 0.84 percent Li2O, including 10 metres at 1.44 percent. Most recently, the company released an update on development at the Finniss project.

2. Sayona Mining

Year-to-date gain: 107.69 percent; market capitalisation: AU$2.12 billion; current share price: AU$0.27

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. In Western Australia’s Pilbara region, the company has further lithium projects, and it is exploring for gold.

On March 17, the company shared its latest half-year report, including updates on its work during the latter half of 2021. Its share price began increasing after this news, and spent the back half of March moving upwards. Sayona's share price shot up further on April 4 on news that testing of lithium spodumene product from the Authier project showed that it “performs as well as commercially available battery-grade lithium hydroxide.”

Most recently, in late April, the company announced the discovery of a lithium pegmatite zone at the Moblan project, news that Piedmont also shared. Though the company’s share price fell following its April 19 year-to-date high of AU$0.38, it has begun to climb again following a valley that dropped it to AU$0.22 on May 12.

3. Global Lithium

Year-to-date gain: 77.89 percent; market capitalisation: AU$353.99 million; current share price: AU$1.69

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 mid-March, the company released its financial report for the half year ended December 31, 2021. A week later, it 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.

Global Lithium’s share price has trended downwards since this peak, during which time the company announced significant high-grade lithium assays at Marble Bar, including a highlight of 3 metres with 2.5 percent Li2O. On May 19, the company mobilized a contractor to begin drilling at the Manna project.

4. Jindalee Resources

Year-to-date gain: 65 percent; market capitalisation: AU$225.5 million; current share price: AU$3.63

Jindalee Resources (ASX:JRL), previously an Australia- and US-focused explorer, is pivoting and repositioning as a pure-play US lithium company, it announced on April 12. The company has decided to focus on its McDermitt lithium project in Oregon, US, which it describes as “one of the largest lithium deposits in the United States.” The company will be separating its Australian assets into a new company that will be listed on the ASX.

The company’s share price has spent April trending upwards, rising from AU$3.42 on April 1 to its year-to-date high of AU$4.80 on April 19. On April 29, the company shared an update on its quarterly activities, including results from drilling at McDermitt, which it referred to as “excellent.”

5. Morella

Year-to-date gain: 61.11 percent; market capitalisation: AU$144.93 million; current share price: AU$0.029

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 projects. Of these, 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.

In mid-March, Morella announced the completion of the necessary environmental, social and governance steps ahead of beginning its drilling program at Mallina, and started drilling a week later. The company’s share price came to a year-to-date high of AU$0.04, which it has hit several other times. 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.