Lithium Stocks ASX: Market Analysis: Investing with Rich

Which ASX Lithium Stocks will keep going up?

Lithium analysis with Peter Chilton, Mining Investment Specialist, Under the Radar Report

Fundamentals driving lithium prices

This week we discuss the fundamentals behind lithium prices and why there has been so much corporate activity and demand for lithium stocks. Because of Peter, Under the Radar Report subscribers have benefited from a huge price rise in some key lithium producers and the stocks that we picked early, include:

  • the 1400%+ return in Pilbara Minerals (ASX:PLS) as well as

  • the Allkem (ASX:AKE) merger with US based Livent; and

  • the Liontown Resources (ASX:LTR) takeover bid by Albemarle.

It’s all happening at Under the Radar Report in the lithium ion battery companies!

Today we talk about the following ASX lithium Stocks, including the top battery grade lithium producers in the market:

  1. Pilbara Minerals (ASX:PLS)

  2. Allkem (ASX:AKE)

  3. Lake Resources (ASX:LKE)

  4. Liontown Resources (ASX:LTR)

  5. Livent (NYSE) (merging with Allkem ASX: AKE)

Access our favourite Lithium Stocks today!

In today's ASX lithium investing video we answer:

  1. Merger activity in ASX lithium sector: What’s driving it, and what is the demand outlook?

    It's been such an exciting sector, we've made big returns from Pilbara Minerals (ASX PLS). And most recently, we've been excited by lots of takeover activity, with Albemarle making a bid for Liontown Resources (ASX LTR). And, of course, the merger that's been just recently been announced between Allkem (ASX:AKE) and Livent (NYSE).

Lithium is a very profitable business to be in at the moment, with strong growth and high prices. So for those big companies, they would require mineral resources. The best way to achieve this is to acquire other companies, which have lithium deposits that are already in production to accelerate their growth. Scale is really important. Find out more about the Allkem (ASX:AKE) and Livent (NYSE:LTHM) Merger.

Lithium prices have had a big price correction, are the green-shoots we’re seeing going to translate into a meaningful rise?

Lithium is very profitable but the price has fallen 40%. What's caused that price fall? And what's it forecast to do?

These prices are still good compared to what they were a few years ago. And a lot of the lithium price from China was not necessarily representative of what's going on in the rest of the world. So prices have fallen. But for now for peak and unsustainable peak prices we've got at the moment are still very good. And in fact, prices are rising again.

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In a booming lithium industry, how do you choose which ASX lithium stock to buy?

 The key qualities to look for in a lithium company are those companies that are actually going to create a new lithium projects or commercial project.

You're looking for quality lithium bodies, quality resources, good management, or the makings of something which can grow just like a pool of minerals from something that was very embryonic into something that's quite significant. There's a lot of companies but only a few are actually going to make it and become top lithium stocks. So you've got to do the work to find out which ones have got the best sort of quality resources and scale.

For an in depth Understanding of Lithium and the mineral resources, please click here.

Would you prefer exposure to brine lithium, hard rock lithium, or a combination?

Pilabara Minerals Lithium ProductionLithium is quite an interesting commodity, because they are there are two branches of it. There's lithium brine mining, and there's lithium spodumene, or rock mining.

There are two different types of mining because of geology. Both are going to be successful, because we need lithium. So both are going to be sought after.

An advantage of hard rock is that you can often get these projects developing cashflow quicker, there's less probably barriers to entry, you can use someone else's plans if they're smaller companies. And you get into production and sell your spot up and concentrate quicker than you would do to get a lithium brine project off, off into production.

Lithium Brine MiningCan you explain the big developments in lithium technology? Do ASX lithium stocks have exposure to this?

The companies like Livent, and also Lake Resources and others, are developing direct lithium bleach processes or direct lithium extraction, which can result in a few shortcuts integrating into production.

Rather than have the big Brine lakes, evaporation ponds, which take time to concentrate the mineral, this is a chemical process, which can accelerate production. Rio Tinto is also looking at the same thing for their project in Argentina.

Livent is probably the the market leaders in this sort of technology. And that will be a great advantage for Allkem. This is disruption that we're seeing.

Another consideration is to have a lower carbon footprint and to process close to the resource rather than transporting halfway around the world to further process. I think the the electric vehicle industry is very keen to get the lowest carbon footprint possible.

Should investors have an exposure to the world's lithium?

There are different processes for mining lithium and investors can get exposure to these lithium mining techniques . We look at big companies that can be commercial, that can upgrade their products to a higher value in a viable economic fashion.

You're looking for companies that have got the scale to grow, and service more markets. There are a lot of products used by the end customer and different types of lithium ion batteries, so you're looking for downstream capacity, which can be very flexible to supply, to support different customers with the products they want.

We ask who are going to be the winners?
We spend time working out the different stocks that can actually deliver. The industry is still dominated by a few big ones, plenty of small ones or potential small ones. These smaller lithium companies have to prove themselves, they've got to build their scale, they've got to have their share of m & a and then build themselves.

Lithium demand is growing and it is an exciting space.

The point is that investors need lithium in their portfolios is that but but it's very much stock specific and although it's a growth sector, it's a sector that is potentially quite versatile and very profitable. Because you've got loads of new entrants, it's, it's one of those sectors, which offers potential for upside.

Therefore, investors should have a part of a pot of lithium. At the moment, say the overall stock market is fairly dull, but the stocks in the lithium sector are moving well. It's a question of making sure you share a part of that and picking the best lithium projects to invest in.


Are Lithium stocks a good buy ASX?

We were the first to pick Pilbara and we have made 1,050%+ for our subscribers. That is 10x their money! and 6 x their money on Orocobre/Allkem

Our expert mining analysis experts provide our services. We have years of expertise in this field. Our subscribers get regular updates on current lithium carbonate prices and ASX shares. Start a free trial with immediate access to the latest expert lithium reports online.

What are the best lithium stocks to buy ASX?

Stock in lithium have climbed on lithium carbonate batteries with a good future forecast. We think that investment demand in lithium is going to continue to grow. All lithium miners we recommend have lithium deposits, are in operation & are able to grow quickly. Trial now to access our best asx lithium stocks and research on globally significant lithium producer asx stocks.

What you need to know about ASX Lithium Stocks

Global lithium demand is growing rapidly in response to electric vehicles demand for battery grade lithium carbonate. With confusing terms such as spodumene concentrate, core lithium, lithium batteries, lithium hydroxide and complex mining techniques and the mineral resources, the necessary information to buy the best stock is not easily understood. We show you everything you need and pick the best stocks that are in production. Lithium has the symbol Li.

What are ASX lithium shares?

Shares in a company that is primarily involved in exploration and mining of lithium. It is one of the most valuable materials and is used for many applications including medicine (lithium has proven useful as a mood stabiliser and antidepressant) and batteries. It is one important component for lithium batteries that are lightweight, rechargeable batteries that power smartphones, computers, e-commerce devices and digital devices. Lithium is attractive in industrial applications because it offers a higher electro-chemical potential than any other metal.

Lithium Battery-AAA-Voltage

  • Peter Chilton, Mining Investment specialist at Under the Radar Report
    Peter Chilton worked as a mining engineer for some of the biggest mining companies in Africa, Europe and Australia before switching to finance over 30 years ago. He is an active ASX share investor and focused in the past few years on “future facing commodities” such as lithium and uranium, where he has led the charge into lithium stocks.

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    Before buying any stock, get free information on lithium stocks.

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Richard Hemming

Richard Hemming

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Richard is a leading market commentator and expert on ASX Small Caps provides investment opportunities in Small Caps that you won’t get anywhere else.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

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