As the market moves into the second half of year, the lithium sector has continued to experience challenges.
However, after 2023’s broad fluctuations, the lithium sector exhibited greater stability in the first half of 2024.
While oversupply and weak prices kept some companies from registering large gains during the period, others saw share price growth. Read on to discover which lithium-focused companies on Canadian and Australian exchanges have performed the best in 2024.
The list below was generated using TradingView’s stock screener, and data was gathered on August 27, 2024. While US lithium companies were considered for the list, none were up year-to-date at the time data was gathered. All lithium stocks had market caps above $10 million in their respective currencies when data was gathered.
Top Canadian lithium stocks
1. Q2 Metals (TSXV:QTWO)
Year-to-date gain: 140 percent; market cap: C$76.02 million; current share price: C$0.60
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, comprising 77 claims and located 6 kilometers north of the Mia property.
This year, Q2 Metals has 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, news that caused its share price to skyrocket; it reached a year-to-date high of C$0.54 on March 4.
In mid-May, Q2 Metals released re-assayed results from 2023 drilling conducted at Cisco by the property’s vendors. The company used the analytical method it has applied to its Mia drill cores.
“We are pleased with the positive outcome of the re-analysis of the Cisco drill results,” said Q2 Metals Vice President of Exploration Neil McCallum. “A thorough review of the quality control measures has solidified that the new results are more accurate than the original results previously announced. It’s not an unexpected change as the analytical methods now used are more accurate at higher grades above roughly 1.5 percent Li2O and we have several samples above that range.”
Later that month, 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.
Q2 Metals closed the acquisition of Cisco in June and now wholly owns the project.
2. Volt Lithium (TSXV:VLT)
Year-to-date gain: 104.3 percent; market cap: C$66.96 million; current share price: C$0.47
Volt is a lithium development and technology company aiming to become a premier North American lithium producer utilizing its proprietary direct lithium extraction (DLE) technology to extract lithium from oilfield brine. It has a Canadian field simulation center in Calgary, Alberta, and is deploying its technology starting in the Permian Basin in West Texas.
On April 29, Volt announced a strategic investment of US$1.5 million by an unnamed company operating in the Delaware Basin in West Texas for the deployment of a field unit to produce lithium hydroxide monohydrate.
In the lead-up to the deployment, Volt significantly increased its DLE production capacity to 96,000 liters per day.
In August, the company announced the successful deployment, installation and commencement of function-testing of its first field unit at the operator’s site. According to the statement, Volt has scaled up the field unit again, and it is now capable of processing over 200,000 liters of oilfield brine per day.
3. Foremost Lithium (CSE:FAT)
Year-to-date gains: 16.02 percent; market cap: C$21.44 million; share price: C$3.91
Foremost Lithium is an exploration company with several hard rock lithium properties, which it calls the Lithium Lane projects, in the Snow Lake district of Manitoba, Canada, as well as the Lac Simard South project in Québec, Canada.
In early June, Foremost announced plans to spin out its Winston gold-silver project in New Mexico, US, into a new wholly-owned subsidiary, Rio Grande Resources. Winston includes three historic mine sites.
In May, the company completed its winter drill program at the Zoro lithium project in Manitoba. The drilling encompassed 21 diamond drill holes over 5,826 meters and targeted previously untested mineralization southeast of Dyke 1, where the company has an inferred resource of 1.07 million metric tons with a 0.91 percent lithium oxide grade.
According to the statement, the preliminary results “demonstrated the continuity of lithium mineralization along Dyke 1.”
In mid-August, Foremost Lithium announced positive results from the program, with one hole intersecting 1.15 percent lithium oxide over 4.97 meters and 1.52 percent over 5.02 meters, and another hitting 1.1 percent lithium oxide over 9.88 meters. These results could enhance the project’s overall resource potential.
Top Australian lithium stocks
1. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 31.72 percent; market cap: AU$718.8 million; current share price: AU$3.82
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 direct lithium extraction process to produce lithium with an end goal of supplying sustainable lithium for the European electric vehicle market.
On April 11, Vulcan announced the commencement of lithium chloride production at its lithium extraction optimization 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.
Vulcan will now prepare the 40 million euro facility for commercial production. 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 electric vehicles during the first phase of production.
In August, Vulcan reported that commissioning of its lithium hydroxide optimization plant, CLEOP, near Frankfurt, had begun. As noted in the statement, this step is key in Vulcan’s plan to produce Europe’s first battery-grade lithium hydroxide from a European source, supporting the local battery market.
2. Prospect Resources (ASX:PSC)
Year-to-date gain: 23.6 percent; market cap: AU$57.06 million; share price: AU$0.11
Africa-focused explorer Prospect Resources holds a diversified portfolio of assets located in Zimbabwe, Zambia and Namibia. The company’s lithium projects, Omaruru and Step Aside, are in Namibia and Zimbabwe, respectively.
In late June, Prospect released an update on its exploration activities at the projects. The company reported strong assay results from Phase 4 diamond drilling at Step Aside, and shared results from follow-up Phase 2 drilling at Omaruru.
In a release, Managing Director Sam Hosack highlights 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. The company believes it can monetize Step Aside in the near term to aid in this goal.
In its most recent 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 Mumbezhi.
Meanwhile, the Omaruru lithium project in Namibia has completed Phase 2 drilling, and spending has been reduced to holding costs as focus shifts to the Mumbezhi project. At the Bikita Gem lithium project in Zimbabwe, Prospect has begun fieldwork and trenching after entering a joint venture earn-in agreement in May, with a limited drilling program planned to ‘to test the subsurface below a number of historical lithium-bearing (petalite) targets identified at the Project.’
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.