The buzz around lithium has been steadily increasing as its uses in electric vehicles, renewable energy, and smartphones continue to grow. Because it’s such an integral part of our everyday lives, many people are looking to invest in the top lithium stocks so they can cash in on the growing trend of industrial demand. While this makes sense in theory, there are several things to consider before investing in these companies. That’s why we’ve decided to put some of the top lithium stocks against each other to see which one will come out on top as the best lithium investment.
Sociedad Quimica y Minera (SQM)
For years, SQM has been the world’s largest lithium producer. The company operates in the Atacama Desert in Chile, where it mines lithium-rich brine. In 2018, SQM produced 43,900 metric tons of lithium carbonate equivalent (LCE), up from 42,900 metric tons in 2017. The company plans to increase production to as much as 70,000 metric tons by 2020. Thanks to its large production scale and low costs, SQM has been able to weather fluctuations in the lithium market better than its smaller competitors. For these reasons, SQM is a good choice for investors looking for exposure to the lithium market. another emerging market worth looking at is the Biotech market, but what is the best biotech stock to buy right now? you answer this question in a different article.
Orocobre Limited (ORL)
Orocobre Limited is a lithium-mining company with operations in Argentina and Australia. The company has been in operation since 1997 and is the largest producer of lithium in Argentina. Orocobre’s share price has been on the rise in recent years, due to increasing demand for lithium. With a market capitalization of over $2 billion, Orocobre is one of the largest lithium mining companies in the world.
SQM Ventures Inc.
SQM has been in business for over 30 years and is the only vertically-integrated lithium producer, meaning they control every step of the process from mining to refining to producing battery-grade lithium hydroxide. This gives them a competitive advantage when it comes to costs.
SQM is also one of the lowest-cost producers of lithium, with a cash cost of just $3,900 per tonne in 2018.
Albemarle Corporation (ALB)
When it comes to investing in lithium mining companies, there are a few key things you want to look for. One is a large and high-quality resource. Another is the low cost of production. And finally, you want a company with good management and a solid track record. You can find all three of these qualities at Albemarle Corporation (ALB). ALB has the largest spodumene resource base in the world, with over 6 million metric tons of contained spodumene. The current cost to produce lithium from this raw material is $6 per kilogram, which means that ALB has an incredible competitive advantage over other producers. In addition, ALB’s management team has more than 150 years of combined experience leading global chemical companies such as Albemarle Corporation and Dow Chemical Company (DOW). To top it off, the company has been around since 1866! So if you’re looking for a top-performing investment opportunity in lithium stocks, this may be just what you’re looking for!
Primero Mining Corp. (PPP)
While Primero may not be the largest lithium company out there, it is one of the lowest-cost producers. That’s thanks to its San Dimas Mine in Mexico, which has some of the richest lithium deposits in the world. The company is also expanding its operations, with a new mine in Argentina set to come online in 2019. This should help Primero weather any industry downturns and continue to grow its bottom line.
