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Lithium Investing
Top 3 US Lithium Stocks (Updated December 2022)
Dec. 19, 2022 01:50PM PST
Lithium prices keep surging, attracting investor interest. Learn about the top US lithium stocks with year-to-date gains.
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Click here to read the latest top US lithium stocks article.
Battery metal lithium is continuing to gain as the year nears its end, reaching a peak in mid-November.
Lithium and the larger battery metals sector in the US received a large boost from the American government in October as President Joe Biden announced US$2.8 billion in grants to companies working to create a domestic battery supply chain in the country. Some of the companies on this list received significant funds for their US projects.
The Investing News Network recently caught up with Rodney Hooper of RK Equity, who spoke about the lithium supply deficit he sees ahead and shared his advice on investing in lithium stocks in today's market.
“Lithium shares have run, so one needs to be selective,” Hooper said. “But I do see the market price holding for some time, which means that anything coming into production in the next while is going to enjoy high prices.”
Here the Investing News Network takes a look at the top lithium stocks with year-to-date gains listed on the NYSE and NASDAQ. The list below was generated using TradingView’s stock screener on December 14, 2022, and includes companies that had market caps above US$50 million at that time. Read on to learn more about their activities.
1. Sigma Lithium (NASDAQ:SGML)
Year-to-date gain: 198.77 percent; market cap: US$3.28 billion; current share price: US$31.70
In Minas Gerais, Brazil, Sigma Lithium has its Grota do Cirilo hard-rock lithium project, where it is currently constructing Phase 1 operations with expected commissioning by the end of the 2022 year. Sigma anticipates Phase 1 production of 270,000 metric tons (MT) annually and Phase 2 production of 531,000 MT. In addition to that, the company is building a greentech dense media separation production plant, which it says will make its operations vertically integrated.
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. This expansion scenario "will potentially position (Sigma) as the world’s fourth largest lithium producer." In mid-August, Sigma shared an update on its “transformative” Q2, mentioning the previously announced news that it had increased the resource at Grota do Cirilo by 50 percent; a Phase 3 technical report has now been filed. Its share price continued to grow throughout the year, reaching a year-to-date high of US$37.46 on October 27 after starting the year at US$10.57.
Midway through November, Sigma released a Q3 update, providing further information on its many construction activities and the commencement of spodumene ore mining that month. Most recently, December 8 saw the announcement of expansion and financing milestones — according to Sigma, it has received positive economic results from a study focused on the potential to boost output at Grota do Cirilo from 270,000 MT in 2023 to 768,000 MT in the operation's second year.
2. SQM (NYSE:SQM)
Year-to-date gain: 75.83 percent; market cap: US$25.53 billion; current share price: US$89.97
SQM is one of the world’s largest lithium companies. It produces lithium out of Chile’s Salar de Atacama and brings it to the market in the form of lithium carbonate and lithium hydroxide. SQM is developing the hard-rock Mount Holland lithium project in Australia through a joint venture with Wesfarmers (ASX:WES,OTC Pink:WFAFF). The company places a heavy emphasis on the sustainability of its operations, with a production process that involves 97.4 percent solar energy.
On March 2, SQM released its 2021 earnings report, including net income of US$585.5 million compared to US$164.5 million for 2020. SQM's share price spiked in May and continued to rise through late May, reaching what was then a year-to-date high of US$113.33. On August 17, SQM shared its Q2 and H1 earnings for this year. In H1, the company saw US$1.66 billion in net income, which was an increase of 940 percent over its net income of US$157.8 million in H1 2021.
In September, SQM celebrated 25 years of lithium production in Chile, and reflected on its path to that point; it also shared its vision for the Salar Futuro project, which is focused on increasing the sustainability of extraction from the Salar de Atacama. Options being looked at include advanced evaporation technologies and direct lithium extraction. On September 14, the company’s share price hit a fresh high of US$133.52. In its Q3 results, released in mid-November, SQM reported US$1.1 billion in net income for the quarter, and US$1.63 billion in gross profit. Most recently, SQM announced an interim dividend of US$3.08 per share.
3. Albemarle (NYSE:ALB)
Year-to-date gain: 4.7 percent; market cap: US$29.04 billion; current share price: US$247.86
Albemarle is a lithium giant that produces lithium, bromine and catalyst solutions at operations around the world. It has a 49 percent interest in the company whose subsidiary, Talison Lithium, owns and runs the Greenbushes mine, as well as a 60 percent interest in Mineral Resources' (ASX:MIN,OTC Pink:MALRF) Wodgina mine. Both of these are hard-rock lithium mines in Western Australia. The company runs the Silver Peak lithium mine in Nevada, which it calls the only producing lithium mine in North America; it also creates high-quality lithium products. Its most significant lithium operations are at Chile’s Salar de Atacama.
On June 13, Albemarle inaugurated its third chemical conversion plant in Chile, which it said should double its lithium production, as well as lower water consumption by 30 percent per MT. At the end of August, Albemarle shared plans to create two global business units, one of which will focus on lithium. The company expects the units to be active as of January 1, 2023.
Albemarle received US$150 million on October 19 to help fund a commercial-scale lithium concentrator facility in North Carolina; the money came as part of the new US battery supply chain grant program. A week later, the company acquired Guangxi Tianyuan New Energy Materials, which owns a lithium conversion facility that can convert 25,000 MT of lithium carbonate equivalent per year.
News continued for the company, which shared its third quarter results, including a gain of 318 percent in net lithium sales over 2021. On November 9, the company announced it was investing up to US$540 million into its bromine operations in Arkansas, US. The news drove its share price significantly, bringing it to a year-to-date high of US$325.38 on November 11. Days later, the company announced it had hired Sean O’Hollaren as chief external affairs officer.
Albemarle announced on December 13 that it will establish the Albemarle Technology Park in Charlotte, North Carolina, and has acquired a place at which to do so. The company is investing US$180 million in the facility, which will be “a world-class facility designed for novel materials research, advanced process development, and acceleration of next-generation lithium products to market.”
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Securities Disclosure: I, Lauren Kelly, currently hold no direct investment interest in any company mentioned in this article.
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