In today’s technology driven world, Lithium has become a vital commodity. Its incredible level of demand in the battery market makes it a highly sought after element. If you are a stock market investor in Canada, you should definitely look into buying Lithium stocks. As per a prediction by Deloitte, Lithium’s demand is expected to triple by 2030. The majority of this surge will be driven by electric car firms. The Electric Vehicles (EV) market is also expected to grow exponentially in the same time span. This growth is going to be fueled by the worldwide push to achieve net-zero carbon emissions and cost-effectiveness of electric cars. About 70% of the Lithium produced worldwide is used for batteries while ceramics and glass use up 14%. The worldwide lithium-ion battery market value is expected to reach about $46 billion by 2026 from $4 billion in 2020 ( a CAGR of 13.7%). The COVID-induced rut in the Lithium market in 2020 had experts worried for a while. Luckily, an uptick in demand for electric vehicles has also led to an increase in demand for Lithium and the market for the highly useful metal has recovered. With the entry of new major players like Apple, Tencent, Intel and Alphabet in the market, lithium prices are seeing a strong recovery. Global X Lithium & Battery Tech ETF (LIT) is up 127% year to date. Since the start of 2021, Lithium prices have surged by 70%.
Lithium batteries only need a modest 0.15 kg to 0.3 kg of lithium per kWh. This makes them 67% lighter than lead-acid batteries. Because of their light weight and good life expectancy, Lithium batteries are the battery of choice for electric vehicles (EV). These batteries are also used in smartphones, smartwatches, and other portable smart devices. The demand for lithium-ion batteries soared 536-gigawatt hours in 2020. By 2030, it is expected to cross 9,300 gigawatt-hours.
Lithium batteries are electric cars and other electric vehicles such as modern-day e-bikes, e-3 wheelers, e-buses, etc. Their lighter weight and longer lifespan are the biggest reason behind their rise in popularity. As the demand and infrastructure for sustaining electric vehicles grows, there is expected to be a major boom in the market. Compared to the 3 million units sold in 2019, experts have predicted a staggering 26 million units sold in 2030. Investing in Lithium stocks seems to be the right thing to do for Canadian investors. Let’s take a look at the best options.
Here are the best Lithium stocks to buy in Canada
Piedmont Lithium Limited (NASDAQ: PLL)
Kicking off our list of the best Lithium stocks to buy in Canada, is Piedmont Lithium Limited. The firm engages in the exploration and development of resource projects in the United States. The company primarily holds a 100% interest in the Piedmont lithium project covering a landholding of 2,126 acres in North Carolina, the United States. It also owns a 61-acre property in Kings Mountain, North Carolina. The company was formerly known as WCP Resources Limited and changed its name to Piedmont Lithium Limited in August 2017. Piedmont Lithium Limited was incorporated in 1983 and is based in Perth, Australia.
Sociedad Quimica Y Minera De Chile (NYSE: SQM)
Sociedad QuÃmica y Minera de Chile S.A. produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals, and other products and services worldwide. The company offers specialty plant nutrients, including potassium nitrate, sodium nitrate, sodium potassium nitrate, specialty blends, and other specialty fertilizers for crops, such as vegetables, fruits, and industrial crops. The company was founded in 1968 and is headquartered in Santiago, Chile. A fantastic Lithium stock to buy in Canada.
Lithium Americas Corporation (NYSE: LAC)
Lithium Americas Corp. operates as a resource company in the United States. It is a fast rising Lithium stock in Canada. The company explores for lithium deposits. It owns interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina, and Thacker Pass project located in north-western Nevada. The company was formerly known as Western Lithium USA Corporation and changed its name to Lithium Americas Corp. in March 2016. Lithium Americas Corp. was incorporated in 2007 and is headquartered in Vancouver, Canada.
Albemarle Corporation (NYSE: ALB)
Next on our list of the best Lithium stocks to buy in Canada, is Albemarle Corporation. It develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Lithium, Bromine Specialties, and Catalysts. The Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and lithium specialties; and reagents, such as butyllithium and lithium aluminum hydride for use in lithium batteries for consumer electronics and electric vehicles, high performance greases, thermoplastic elastomers for car tires, rubber soles, plastic bottles, catalysts for chemical reactions, organic synthesis processes in the areas of steroid chemistry and vitamins, life sciences, pharmaceutical industry, and other markets. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina.
EnerSys (NYSE: ENS)
EnerSys is a great Lithium stock for Canadian investors. The firm provides various stored energy solutions for industrial applications worldwide. The company offers energy systems, which combine enclosures, power conversion, power distribution, and energy storage are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and other applications requiring stored energy solutions; motive power batteries and chargers that are utilized in electric forklift trucks and other industrial electric powered vehicles; and specialty batteries, which are used in aerospace and defense applications, large over-the-road trucks, automotive, medical, and security systems applications. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was incorporated in 2000 and is headquartered in Reading, Pennsylvania.
Energizer Holdings, Inc (NYSE: ENR)
Next on our list of the best Lithium stocks to buy in Canada, is Energizer Holdings, Inc. Together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer and Eveready brands, as well as primary, rechargeable, specialty, and hearing aid batteries. It sells its products through direct sales force, distributors, and wholesalers; and through various retail and business-to-business channels, including mass merchandisers, club, electronics, food, home improvement, dollar store, auto, drug, hardware, e-commerce, convenience, sporting goods, hobby/craft, office, industrial, medical, and catalog. Energizer Holdings, Inc. is headquartered in St. Louis, Missouri.
Livent Corporation (NYSE: LTHM)
Livent Corporation manufactures and sells performance lithium compounds primarily used in lithium-based batteries, specialty polymers, and chemical synthesis applications in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company is one of the best Lithium stocks to invest in. The company offers lithium compounds for use in applications that have specific performance requirements, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries; and butyllithium, which is used in the production of polymers and pharmaceutical products, as well as a range of specialty lithium compounds, including high purity lithium metal, which is used in the production of lightweight materials for aerospace applications and non-rechargeable batteries. It also provides lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride, and specialty organics; and lithium carbonate and lithium chloride for use as feedstock in the process of producing performance lithium compounds. The company was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.
Johnson Controls, Inc. (NYSE: JCI)
Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide. This company has one of the best Lithium stocks in Canada and operates through Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products segments. The company designs, sells, installs, and services heating, ventilating, air conditioning, controls, refrigeration, integrated electronic security, and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional, and governmental customers; and energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven smart building solutions to non-residential building and industrial applications. The company was formerly known as Johnson Controls, Inc. and changed its name to Johnson Controls International plc in September 2016. Johnson Controls International plc was founded in 1885 and is headquartered in Cork, Ireland.
Quantumscape Corporation (NYSE: QS)
QuantumScape Corporation, a development stage company, engages in the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applications. The company was founded in 2010 and is headquartered in San Jose, California.
Tesla, Inc. (NASDAQ: TSLA)
The next entrant on the best Lithium stocks list is the most popular electric car manufacturer in the world, Tesla, Inc. It designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits. It provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; and purchase financing and leasing services. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was founded in 2003 and is headquartered in Palo Alto, California.
FMC Corporation (NYSE: FMC)
Rounding up our list of the best Lithium stocks to buy in Canada, we have FMC Corporation, an agricultural sciences company. It provides crop protection, plant health, precision agriculture, and professional pest and turf management products. The company develops, markets, and sells crop protection chemicals that include insecticides, herbicides, and fungicides that are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and disease, as well as in non-agricultural markets for pest control. It also offers biological products, such as bionematicides under the Quartzo and Presence names. The company operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.