Top 5 Canadian Lithium Stocks (Updated May 2022)

1. Sigma Lithium (TSXV:SGML)

Year-to-date gain: 67.38 percent; market capitalization: C$1.968 billion; current share price: C$21.76

In Minas Gerais, Brazil, Sigma Lithium has its Grota do Cirilo hard-rock lithium project, which has been in production at a pilot scale since 2018. Sigma expects Phase I production of 220,000 metric tons (MT) annually.

According to the company, its goal is to become “one of the world’s largest, lowest-cost producers of high-purity, environmentally sustainable lithium products.” Sigma is constructing its greentech dense media separation production plant, which will make its operations vertically integrated.

The company was recently recognized by the Bank of America (NYSE:BAC) as part of its “Top 50 Stocks for 10 Scarcity Themes.” In late March, the company announced environmental, social and governance steps it would be taking, including donating 7,000 food baskets to the region it operates in. Sigma went on to release its 2021 annual results alongside an update on the construction of its Phase 1 production plant, which is on schedule.

In mid-April, the company updated its feasibility study with a potential production capacity increase to 450,000 MT per year. Following that, its share price spent much of April and early May elevated, including a fresh year-to-date high on May 4 of C$22.21, before falling back down.

On May 26, Sigma filed a consolidated technical report that looks at two initial production phases for Grota do Cirilo. The integrated operation would source feedstock spodumene ore from the company's Phase 1 and Phase 2 lithium deposits to produce battery-grade, high-purity lithium concentrate. The company pegs the after-tax net production revenue at US$5.1 billion and the after-tax internal rate of return at 589 percent, and states that this expansion scenario "will potentially position (it) as the world’s fourth largest lithium producer."

2. Frontier Lithium (TSXV:FL)

Year-to-date gain: 64.04 percent; market capitalization: C$705.057 million; current share price: C$3.33

Frontier Lithium’s goal is to become a manufacturer of battery-quality lithium salts for the electric vehicle and lithium-ion battery markets. According to the company, its PAK lithium project “contains one of North America’s highest-grade, large-tonnage hard-rock lithium resources in the form of a rare low-iron spodumene.” The project, which is being actively developed by Frontier, is located in Ontario’s Electric Avenue.

Frontier’s news in 2022 has focused on exploration at PAK’s Spark deposit, where on March 1 it announced an updated indicated resource of 14 million MT averaging 1.4 percent lithium oxide and an inferred resource of 18 million MT averaging 1.37 percent lithium oxide. Later that month, the company announced the completion of its mineral processing pilot plant campaign. Since then, Frontier has added CFO Tony Zheng to its leadership team.

Most recently, Frontier released its 2022 exploration plans, which will continue to focus on the Spark deposit. The company’s share price hit a year-to-date high of C$3.84 two days later on May 4.

3. Lithium Energi Exploration (TSXV:LEXI)

Year-to-date gain: 63.64 percent; market capitalization: C$20.308 million; current share price: C$0.27

Lithium Energi Exploration is an acquisition, exploration and development company working in South America’s Lithium Triangle, with over 72,000 hectares of lithium brine concessions in Argentina’s section of the triangle.

In January, the company announced that exploration and development with its joint venture partner Global Oil Management Group was accelerating. The name of the new joint venture is Triangle Lithium Argentina.

On March 24, the company shared that, alongside its new joint venture Triangle Lithium Argentina, it had commenced exploration drilling in the Antofalla basin. This news caused its share price to shoot up over the following weeks, moving from C$0.21 on March 24 to a year-to-date high of C$0.35 by April 11. The company hasn’t released news since then, and it has fallen since that high.

4. Avalon Advanced Materials (TSX:AVL)

Year-to-date gain: 22.73 percent; market capitalization: C$49.5 million; current share price: C$0.135

Avalon Advanced Materials is focused on the clean energy and new technology supply chains. Its five projects are all located in Canada. Its main lithium project is its Separation Rapids lithium project in Kenora, Ontario. According to the company, it “has the potential to produce high purity lithium compounds for two distinct markets: an industrial mineral product for glass-ceramics and lithium chemicals for energy storage.”

On April 4, Avalon announced a partnership with RenJoules International, which will help with Avalon’s plans to develop a regional lithium battery materials supply chain; it will focus on supplying future electric vehicle battery manufacturers. The company’s share price spiked on this news, hitting a year-to-date high of C$0.22. Avalon's share price has fallen back down since then. Its most recent news came on May 5, when it announced its entrance into a C$3 million funding agreement to accelerate the work program at Separation Rapids.

5. Ultra Lithium (TSXV:ULT)

Year-to-date gain: 9.52 percent; market capitalization: C$30.612 million; current share price: C$0.23

Ultra Lithium (formerly Ultra Resources) is a lithium and gold company with projects and properties in Argentina, Canada and the US. The company is currently primarily focused on its projects that are in Argentina and Ontario, Canada. Its two lithium properties in Argentina, Laguna Verde I and II, are lithium brines, while its Ontario lithium projects, Georgia Lake and Forgan Lake, are pegmatite deposits.

In February, the company announced the commencement of exploration drilling at its 100 percent owned Laguna Verde project ⁠— scheduled to be completed in Q2 2022 ⁠— and the signing of an exclusive strategic cooperation agreement with Zangge Mining. The partner company will aid in the exploration and development of the property with the goal of bringing it to production rapidly.

Company shares spiked to a year-to-date high of C$0.40 on April 5, but fell back down immediately following that rise. Since then, the company has released multiple pieces of news. Firstly, it completed its 100 percent acquisition of the Forgan Lake lithium property; a week later, it announced its entrance into a joint venture with Yahua International Investment and Development, whereby Ultra Lithium will sell a 60 percent interest in both the Forgan Lake and Georgia Lake projects to Yahua. As of May 10, that sale has been finalized.