Lithium is a critical material for manufacturing batteries used in laptops, cell phones and electric vehicles, or EVs. With demand for all of these products surging, so is the demand for lithium.
Best lithium stocks
The following stocks are involved in the mining, manufacturing or distribution of lithium. We included stocks that can be traded on American stock exchanges such as the Nasdaq and NYSE.
Top lithium stocks by market capitalization
1. Johnson Controls International PLC (JCI) – NYSE
Market cap: $32.95 billion
Johnson Controls International plc was founded in 1885 and is based in Cork, Ireland. The company specializes in several building products including heating and cooling services and fire detection systems. In 2021, JCI launched its Lithium-Ion Risk Prevention System, which provides early warnings of battery failure in lithium-ion batteries. Battery failure, if not prevented early, can create a fire risk.
2. Albemarle Corporation (ALB) – NYSE
Market cap: $23.68 billion
Albemarle Corp. was founded in 1887 and is based in North Carolina. The company develops and manufactures lithium compounds that are used in lithium batteries for various electronic products, including electric vehicles. Albemarle owns two operational lithium mines, one in Chile and one in Nevada. The company also has a 49% stake in an Australian mine.
3. QuantumScape Corporation (QS) – NYSE
QuantumScape was founded in 2010 and is based in California. The company develops lithium batteries with a particular focus on transportation. QS has invested over $300 million in its solid-state lithium-metal battery technology.
Lithium stock ETFs
Picking individual lithium stocks can be fairly risky. But investing in a lithium stock-heavy exchange-traded fund, or ETF, can give your portfolio exposure to lithium with less risk. Lithium ETFs include a basket of stocks related to the lithium industry. One of these ETFs is the Global X Lithium & Battery Tech ETF (LIT). LIT invests in companies that span the lithium production cycle, such as mining, refining and battery production.
If you want complete control over which companies you’re investing in, individual stocks, while riskier, may be more attractive to you.
Neither the author nor editor held positions in the aforementioned investments at the time of publication.