Global lithium stocks and the lithium market faced a turbulent 2024, marked by oversupply, softer-than-expected electric vehicle (EV) demand and geopolitical tensions that reshaped the industry.
Prices for lithium carbonate plummeted 22 percent over the year, driven by a global supply glut and weaker demand outside of China.
Amid this challenging landscape, mergers and acquisitions surged. The year started out with the completion of the merger between Livent and Allkem that birthed Arcadium Lithium (NYSE:ALTM,ASX:LTM), and in October Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) announced its acquisition of Arcadium.
Meanwhile, EV demand rebounded late in the year, led by record sales in China, even as geopolitical uncertainty, tariffs and policy shifts added to market volatility.
Even against this backdrop, some lithium stocks performed strongly. The lists of top lithium stocks below were generated using TradingView’s stock screener, and all lithium stocks had market caps above $50 million in their respective currencies when data was gathered.
Data for Canadian stocks was collected on December 27, 2024, and data for Australian stocks was gathered on December 31, 2024. While US lithium companies were considered for the list, none were up year-to-date at the time data was gathered.
Top Canadian lithium stocks
1. Q2 Metals (TSXV:QTWO)
Year-to-date gain: 220 percent
Market cap: C$106.11 million
Share price: C$0.80
Exploration firm Q2 Metals is exploring its flagship Mia lithium property in the Eeyou Istchee James Bay region of Québec, Canada. The property contains the Mia trend, which spans over 10 kilometers. Also included in Q2 Metals’ portfolio is the Stellar lithium property, comprised of 77 claims and located 6 kilometers north of the Mia property.
In 2024, Q2 Metals also focused on exploring the Cisco lithium property, which is situated in the same region. On February 29, the company entered into three separate option agreements to gain a 100 percent interest in Cisco. The news caused its share price to skyrocket, reaching a Q1 high of C$0.54 on March 4.
Q2 Metals closed the acquisition of Cisco in June and now wholly owns the project.
In mid-May, the company announced the start of a summer drill program at the Cisco property. It has since released multiple significant updates, including the confirmation of eight new mineralized zones on July 8.
On October 1, Q2 released assays from the drill program, and its share price spiked on the news, ultimately climbing to an all-time high of C$1.48 on October 11.
“These assays continue to validate the potential and scale of the Cisco Property as that of a larger mineralized system,” said Neil McCallum, vice president of exploration. “One important observation of these results is the higher-grade nature of the larger mineralized system as we test and track the system progressing to the south.”
By the end of the drill program, the company had drilled 17 holes covering 6,360 meters in total, and it released the final results from the campaign on December 17.
As of mid-December, Q2 now has the exclusive right to acquire a 100 percent interest in 545 additional mineral claims, which would triple its land position at the Cisco lithium property. The new claims, located south of the original property, enhance prospects for development and future mining infrastructure.
2. Power Metals (TSXV:PWM)
Year-to-date gains: 73.08 percent
Market cap: C$67.57 million
Share price: C$0.45
Exploration company Power Metals holds a portfolio of diversified assets in Ontario and Québec, Canada.
In late February, Power Metals commenced a winter drill program at its Case Lake property in Northeastern Ontario. The program was designed to expand and define lithium-cesium-tantalum (LCT) mineralization, building on previous work that revealed high-grade lithium and cesium mineralization.
Company shares rose to an H1 high of C$0.47 at the end of March coinciding with news that Power Metals had staked the 7,000 hectare Pelletier project, consisting of 337 mineral claims in Northeast Ontario. According to the company, the project features LCT potential, with peraluminous S-type pegmatitic granites intruding into metasedimentary and amphibolite formations.
During Q4, Power Metals identified a new pegmatite zone at Case Lake through soil sampling. The samples from the zone, located north-northwest of its West Joe prospect, revealed elevated levels of cesium, tantalum, lithium and rubidium, highlighting promising drill targets for the winter program.
The company has also launched its Phase 2 drone magnetic survey, to refine its structural model for critical mineral targets at West Joe and the Main Zone ahead of 2025 exploration efforts.
In a December 10 exploration update, Power Metals disclosed that its partner Black Diamond Drilling, a First Nations owned drilling company, had completed a total of 16 drill holes for 971 meters of the planned 2,000 meter program. Environmental studies are also ongoing.
Shares rose over the following week to a year-to-date high of C$0.49 on December 16.
3. Lithium Chile (TSXV:LITH)
Year-to-date gains: 45.28 percent
Market cap: C$163 million
Share price: C$0.77
South America-focused Lithium Chile owns several lithium land packages in Chile and Argentina, including its Salar de Arizaro property in Argentina.
On April 9, Lithium Chile announced a 24 percent increase in the resource estimate for Salar de Arizaro. The new total for the project is 4.12 million metric tons (MT) of lithium carbonate equivalent, categorized as follows: 261,000 MT in the measured category, 2.24 million MT in the indicated category and 1.62 million MT in the inferred category.
Not long after, on April 18, the company reported the creation of two wholly owned Canadian subsidiaries — Lithium Chile 2.0 and Kairos Gold — as part of a spinout to separate its Chilean and Argentinian assets.
Lithium Chile will retain its Argentinian lithium projects, and transfer its 111,978 hectares of Chilean lithium properties to Lithium Chile 2.0 and its portfolio of gold assets in Chile to Kairos Gold.
In a July operational update for the Salar de Arizaro project the company highlighted that a drill hole encountered ‘a brine-rich, sandy formation encountered from 161 to 500-metres.’
An August announcement provided an update, noting the spin out of Lithium Chile 2.0 was reliant on finalizing a strategic deal for the company’s Arizaro property. As for Kairos Gold, its spin out was effective on December 4.
In mid-December, Lithium Chile penned a letter of intent to sell its 80 percent stake of the Argentinian Arizaro lithium project.
While Lithium Chile did not disclose the buyer it was noted that the buyer “is a large, Asian based company founded over two decades ago (and) a diversified enterprise with significant interests in mining, renewable energy, and technology sectors.”
The move to sell its flagship asset signals a significant step in the company’s strategic realignment. Although company shares reached a year-to-date high of C$0.88 in March, the recent sale news has pushed shares into the C$0.80 level.
Top Australian lithium stocks
1. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 84.48 percent
Market cap: AU$1.19 billion
Share price: AU$5.35
Europe-focused Vulcan Energy Resources aims to support a carbon-neutral future by producing lithium and renewable energy from geothermal brine. The company is currently developing the Zero Carbon lithium project in Germany’s Upper Rhine Valley. Vulcan is utilizing a proprietary alumina-based adsorbent-type DLE process to produce lithium with an end goal of supplying sustainable lithium for the European EV market.
On April 11, Vulcan announced the commencement of lithium chloride production at its lithium extraction optimisation plant in Germany. According to the company, the milestone marks the first lithium chemical production in Europe using local supply. The plant consistently exhibited over 90 percent lithium extraction efficiency.
The company already has binding lithium offtake agreements in place with major automakers and battery manufacturers, and expects to supply enough lithium for 500,000 EVs during the first phase of production.
During the third quarter, Vulcan received its first licences for lithium and geothermal exploration in Alsace, France. The permits cover 463 square kilometres, expanding Vulcan’s total licenced area in the Upper Rhine Valley to 2,234 square kilometres across France and Germany.
In early August, Vulcan began commissioning its downstream lithium hydroxide optimisation plant (CLEOP) near Frankfurt, Germany, which will process the lithium chloride concentrate from its DLE plant.
A mid-October release from Vulcan outlines a memorandum of understanding with industrial software designer AVEVA. The partnership will see AVEVA build a digital framework for Vulcan’s Zero Carbon lithium project.
Also in October, the company earned S&P Global’s highest ‘dark green’ sustainability rating, a first for the mining sector, under its Green Financing Framework.
On November 8, Vulcan announced it had commenced lithium hydroxide production at CLEOP. The milestone coincided with an AU$162 million funding infusion from Germany’s Federal Ministry of Economics and Climate Protection and the European Recovery and Resilience Facility.
To end the year, Vulcan announced the signing of a AU$1.45 billion conditional debt commitment letter with Export Finance Australia and a group of seven commercial banks.
2. Ioneer (ASX:INR)
Year-to-date gain: 6.67 percent
Market cap: AU$353.35 million
Share price: AU$0.16
Australia-listed Ioneer owns the Rhyolite Ridge lithium-boron project in Nevada, US. The project is considered the “sole lithium-boron deposit in North America.”
As part of the permitting process for the Rhyolite Ridge project, Ioneer completed and submitted the administrative draft environmental impact statement (EIS) to the US Bureau of Land Management (BLM) in mid-January. In mid-September, Ioneer announced that the BLM published the final EIS, moving the company closer to construction.
The comprehensive review process addressed environmental concerns, particularly regarding the protection of the endangered Tiehm’s buckwheat plant found at the site. Ioneer has committed to measures aimed at safeguarding the plant’s habitat.
In October, Ioneer secured final federal approval for its Rhyolite Ridge project, marking the first US lithium mine authorized under the Biden administration.
Rhyolite Ridge is projected to produce sufficient lithium for approximately 370,000 electric vehicle batteries annually. Construction is slated to commence in 2025, with production expected by 2028.
Ioneer saw its shares reach a 2024 high of AU$0.31 on October 28.
3. Prospect Resources (ASX:PSC)
Year-to-date gain: 2.25 percent
Market cap: AU$52.03 million
Share price: AU$0.09
Africa-focused exploration company Prospect Resources holds a diversified portfolio of assets in Zimbabwe, Zambia and Namibia. The company’s lithium prospects, Omaruru and Step Aside, are in Namibia and Zimbabwe respectively.
In late June, Prospect released an update on its exploration activities, reporting strong assay results from Phase 4 diamond drilling at the Step Aside lithium project in Zimbabwe and follow-up Phase 2 drilling at the Omaruru lithium project.
In the statement, Managing Director Sam Hosack highlighted the significant mineralization potential at both projects.
Moving forward, Prospect plans to slow down spending at its lithium projects as it turns to its newly acquired Mumbezhi copper project in Zambia. The company believes it can monetize Step Aside in the near term to aid in this goal.
In its June quarterly results, Prospect noted the completion of drilling and fieldwork for the Phase 4 diamond drilling program at the Step Aside lithium project in Zimbabwe, with no further exploration planned. The project is being prepared for sale to help fund the Mumbezhi copper project.
Meanwhile, Phase 2 drilling at the Omaruru lithium project is complete, and the company has reduced spending to holding costs as focus shifts to the Mumbezhi project.
In its September quarterly report, the company noted it was discontinuing its Bikita Gem earn-in project in Southeastern Zimbabwe after drilling results failed to identify economically viable volumes of petalite-rich lithium mineralization.
Shares of Prospect registered a 2024 high on May 28, when shares were trading for AU$0.21.
FAQs for investing in lithium
How much lithium is on Earth?
While we don’t know how much total lithium is on Earth, the US Geological Survey estimates that global reserves of lithium stand at 22 billion metric tons. Of that, 9.2 billion MT are located in Chile, and 5.7 billion MT are in Australia.
Where is lithium mined?
Lithium is mined throughout the world, but the two countries that produce the most are Australia and Chile. Australia’s lithium comes from primarily hard-rock deposits, while Chile’s comes from lithium brines. Chile is part of the Lithium Triangle alongside Argentina and Bolivia, although those two countries have a lower annual output.
Rounding out the top five lithium-producing countries behind Australia and Chile are China, Argentina and Brazil.
What is lithium used for?
Lithium has many uses, including the lithium-ion batteries that power electric vehicles, smartphones and other tech, as well as pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass. Still, it is largely the electric vehicle industry that is boosting demand.
How to invest in lithium?
Those looking to get into the lithium market have many options when it comes to how to invest in lithium.
Lithium stocks like those mentioned above could be a good option for investors interested in the space. If you’re looking to diversify instead of focusing on one stock, there is the Global X Lithium & Battery Tech ETF (NYSE:LIT), an exchange-traded fund (ETF) focused on the metal. Experienced investors can also look at lithium futures.
Unlike many commodities, investors cannot physically hold lithium due to its dangerous properties.
How to buy lithium stocks?
Through the use of a broker or an investing service such as an app, investors can purchase lithium stocks and ETFs that match their investing outlook.
Before buying a lithium stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it’s critical to complete due diligence before making any investment decisions.
It’s also important for investors to keep their goals in mind when choosing their investing method. There are many factors to consider when choosing a broker, as well as when looking at investing apps — a few of these include the broker or app’s reputation, their fee structure and investment style.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.