Although mining in the basin has not yet begun, locals fear similar impacts to those faced by others living near other salt flats. Residents living near the Agonic Mine told Mongabay that the company has completed its on-site exploration work and has moved on to the next phase, which involves in-depth studies. They said they fear exploration will turn into exploitation, which could strain water sources. No sources, including Mongabay, have received the project’s environmental impact study by the time of this publication. In batteries, these minerals only capture value after refining, component manufacturing, and cell production at scale, day in and day out. China refines about 70% of the world’s lithium, turning raw ore into battery-grade material.

The company is currently highly reliant on Chilean resources, and it remains to be seen how state control of lithium will affect SQM’s ability to generate a profit. The Investing Brokers team have over 15 years of experience in the online brokerage industry and are committed to providing reliable information for all of the brokers that we review. Investors should monitor trends in battery design, such as the rise of child combinator css solid-state batteries, which may alter lithium usage patterns. Companies that adapt quickly to these trends may perform better in the long run.

Technical analysis is often helpful when searching for ideal entry and exit points in your stock investments. Lithium-ion is used in the fabrication of rechargeable batteries, making it a crucial commodity for electric vehicles, mobile phones and all kinds of electronics. Lithium also fabricates ceramic glazes and glass, high-temperature lubricants and chemical polymers. The pharmaceutical industry even uses lithium salts in bipolar and antidepressant medications. Learning how to invest in lithium could be a central investment theme for 2023, and it’s a good idea to know how production occurs and where you can use it.

Understand Methods of Lithium Extraction

• One direct approach is investing in individual companies engaged in the lithium supply chain.
• Here’s a quick review of each; click the company name links to find out more.
• Therefore, determine the risk and reward potential of any security influenced by the price of lithium.

This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team. If you do decide to trade, you’ll need to use either a spread betting or “contract for difference” (CFD) account. Spread betting is a type of tax-efficient account that you can use to place bets on the price movements of underlying securities without taking ownership of any physical capital.

• Lithium is one of the essential minerals used in the production of batteries, but it’s not a commonly traded commodity like gold or oil.
• This growing demand has made lithium an attractive option for investors looking to capitalize on long-term trends.
• The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information.
• The highest concentration sources are being mined first, but many new reserves, such as the Smackover Formation in Arkansas or the Salton Sea in California, are low-concentration brines or geothermal fluids.

Find Large And Small Lithium Producers

Achieving such exceptional returns involves the risk of volatility and investors should not expect that such results will be repeated. If you’re just getting started in investing, it’s worth considering the role that gold could play in your portfolio. It’s obviously tempting to buy gold during a bull run like the one it has been enjoying, but even when gold prices aren’t climbing there are good reasons to include an allocation in your portfolio. Gold’s recent history has also been a prosperous period for gold investors.

What Are Lithium Stocks?

So, investing in lithium has the potential to be particularly profitable over the next few years. In this article, we will explore everything you need to know so that you can intelligently invest in this valuable metal. Lithium is an alkali metal (symbol Li on the periodic table) that manufacturers use in many applications, including glass/ceramic production, metallurgy, and medicine. Research your brokerage options and use the platform that best suits your investing goals.

Governments and private sectors alike are investing in domestic lithium supply chains to reduce reliance on foreign sources. Technological advances in battery recycling may also create new supply channels and investment opportunities. With your account funded, you can proceed to place a trade for your chosen lithium stock or ETF.

Account

This analytical phase involves examining company financials, industry trends, and broader market influences. Lithium stocks refer to shares of companies involved in the mining, processing, or distribution of lithium. Traditionally, markets did not treat the metal as a commodity in the same sense as gold, palladium, copper, or oil. Mitigate risks by diversifying your investments across various companies and asset types within the lithium market. A diversified portfolio helps manage potential losses while maximizing opportunities. To help lessen wild swings in value, consider buying a lithium ETF such as the Global X Lithium & Battery Tech ETF (LIT -0.73%) or invest in a basket of lithium stocks such as the ones listed above.

Investing in lithium does not have to limit yourself to the metal or focus only on one specific aspect of its production. That is why a good first step in any investing situation is to set aside the amount of money you will invest ahead of time. The mine entered open-pit production during H2 2024, and the plant hit commercial production in January 2025. The company is currently transitioning Kathleen Valley from an open-pit to underground mining operation, making it the state of Western Australia’s first underground lithium mine. The world’s largest hard-rock mine is the Greenbushes mine in Australia, and the bulk of the world’s lithium brine production comes from salars in Chile and Argentina.

The core driver of lithium’s value is the balance between supply and demand. Demand is primarily driven by electric vehicles, portable electronics, and large-scale energy storage projects. On the supply side, new lithium mining projects and expansions in existing operations can increase availability, but development timelines can be long and subject to delays. One of the best ways to help the EV revolution is to invest in publicly traded lithium companies by investing in lithium stocks and ETFs. Your buy bitcoin cash with cash in philippines buy bitcoin with google play balance investment will go a long way in producing electric vehicle batteries.

Investing in these companies provides exposure to the overall electrification trend, though their performance is tied to broader automotive market dynamics and brand-specific factors. Lithium, a soft, silvery-white alkali metal, holds a significant position in the global economy. Its unique properties make it an indispensable component in various modern technologies, particularly in rechargeable batteries. These lithium-ion batteries are fundamental to the rapidly expanding electric vehicle (EV) market and play a pivotal role in renewable energy storage systems. Gaining exposure to the lithium market can be achieved through various investment vehicles, each offering a different level of directness and diversification. These vehicles range from direct ownership in companies involved in the how to buy synthetix lithium supply chain to broader, diversified funds.