5 Best ASX lithium stock for 2023
Although ASX lithium stock prices fluctuate daily, this is a long-term investment. In the year 2022, there are 5 excellent Australian ASX lithium stock listed on the ASX, and I have outlined why you should purchase each of them in detail.
1. Lake Resources Ltd (ASX: LKE)
is the one who will be successful in 2022, in our opinion. Its value might increase significantly if it becomes the fourth producer of lithium after Altura Mining, Pilbara Minerals, and Galaxy Resources. After recently establishing an offtake agreement with the German specialty chemicals company LANXESS AG, LKE is ready to be taken seriously by the market (ETR: LXS). Although LKE, a lithium company, was established in 2005, they were not well-known until the beginning of 2018. In 2012, it became obvious that their brine extraction method would not be commercialised anytime soon, therefore management was forced to sell up its assets.
LKE successfully funded $8 million AU in 2017, and they then purchased back the original brine assets. With a market valuation of AU$1.24 billion, OTOCORB is one of Australia’s leading producers of lithium thanks to brine extraction. For $6 million AUD, LKE acquired another brine asset close to Greenbushes in WA in 2018. With a branch of the German speciality chemicals business LANXESS AG (ETR: LXS), they now have a legally binding offtake agreement. With an expected 18,000 tonnes of LCE output annually starting in 2020, LKE is a mid-tier producer.
In our perspective, the market has not given LKE enough attention. It is drastically undervalued for a firm with a lot of near-term catalysts. Because of this, we think that LKE will be a wise investment for lithium in 2022.
2. Core Lithium (ASX: CXO)
Regarding the rewards you may expect, investing in CXO would be a fantastic decision. The reason for this is that the company’s financial performance has been improving year after year and quarter after quarter if you look at it. Therefore, if you invest your money today, there is a good possibility that it will have increased in value within the next few years.
As I write this, the CXO share price is $1.35 AUD, and the company’s stocks have experienced phenomenal growth. It is expanding daily, and because to the size of its initiatives, enormous profits are anticipated in 2022. Therefore, with CXO, investors would be able to earn respectable returns both today and in the future.
3. Lithium Australia (ASX: LIT)
ASX lithium stock LIT appears to be doing pretty well for investors. Two additional projects that it just bought, one in Australia and one in Canada, have the potential to quadruple the company’s overall output. Back in 2005, when LIT was still known as ADX, everything began. Lithium Australia NL changed its name to that in 2010, and under the direction of Dr. James Nelson from the University of British Columbia, it began investigating lithium in Canada. LIT began investigating business options in Australia and bought Jervois Mining Ltd, which specialises in the hard rock industry and has just one asset.
The company’s market capitalization is also close to $1 billion. LIT’s fortunes, however, shift in 2013 when it buys the PLS project from Galaxy Resources Ltd, which is owned mostly by mining tycoon Clive Palmer. The known lithium resources of the nation as well as over half of the known spodumene deposits of the whole planet are both present in this project.
LIT advanced further in 2014 when it purchased Mineral Deposits Limited’s main property in Lake Taldy, Queensland. One of the highest grade hard rock lithium resources being explored in Australia or North America is part of the project, which is a hard rock lithium deposit.
This project, which is at a very advanced stage of construction, has the capacity to produce 40,000 mt. The initial stage of this project’s development might begin in 2020. Additionally, LIT just made its most recent acquisitions when it bought e-Cobalt Solutions Inc. and Lithium Power International Limited (Lithium Power) (e-Cobalt).
4. Arizona lithium (ASX: AZL)
Arizona Lithium is the newly added candidate for the best ASX lithium stock to purchase in 2022. (ASX:AZL) This company’s performance over the past several months has been excellent, with a 52-week high of $0.20 and a 52-week low of $0.04. This business was established in 1969. (you can trust them). Morningstar Quantitative estimates the fair value of this share to be $0.21 at the time of this valuation, although other experts believe it may eventually reach $1 AUD.
By the end of 2022, the price of AZL is expected to be $0.38 AUD. AZL’s share price is $0.16 AUD at the moment.
5. Global Lithium (ASX: GL1)
The Marble Bar ASX lithium stock project, which GL1 owns 100% of and is situated in Western Australia’s North Pilbara Craton, is the company’s current primary area of concentration. Another project where GL1 has 80% of the equity is Breaker Resources’ Manna lithium project. The project is being worked on by both firms and was launched in 2022. Additionally, on March 3, 2022, GL1 and Suzhou TA&A Ultra Clean Technology agreed to a 10-year supply agreement for spodumene concentrate.
With a 52-week high of $2.79 AUD and a 52-week low of 0.24 AUD, the GL1 share price is now $1.75 AUD. The fair value of GL1 is $2.84 AUD, according to Morningstar. You may thus decide for yourself if joining this firm at this price is worthwhile or not.
Will lithium stocks go up
Yes, ASX lithium stock piles will increase for a variety of reasons, including rising lithium demand and rising interest in electric vehicles, where lithium will be a key component of batteries. In addition to automobiles, lithium is in high demand in the medical industry. Because medication is always needed, there will always be a need for lithium.
Should I invest in lithium stocks
Investing in ASX lithium stock equities or ETFs that invest in lithium is a surefire way to diversify your portfolio.
Every day, there is a greater and greater demand for lithium, which many big analysts predict will reach 2 million tonnes in 2030.
As you are aware, ASX lithium stock is used in batteries, and as the demand for electric cars rises, so will the need for lithium.
List of lithium mining companies in Australia
|Lithium companies||ASX code|
List of lithium mining companies in Australia | Top 10 ASX Lithium Stocks to Watch in 2022, 2023
Small cap lithium stocks ASX
- METALS AUSTRALIA (ASX:MLS)
- SHREE MINERALS (ASX:SHH)
- TAMBOURAH METALS (ASX:TMB)
- BRYAH RESOURCES (ASX:BYH)
These stocks are among the best Australian ASX lithium stock with a market valuation under 15 million because they are somehow related to lithium mining and exploration. We advise staying away from these ASX lithium stock.
Will ASX lithium stock go up 2023?
Despite some price correction that could be anticipated, led by a slowdown in the Chinese market, market participants told S&P Global Commodity that lithium prices will likely see strong support in 2023. Supply is anticipated to remain tight amid bullish demand from the accelerating adoption of electric vehicles worldwide.