Five ASX lithium stocks to explore amid buoyant EV space

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Five ASX lithium stocks to explore amid buoyant EV space

Lithium stocks, VUL, ORE, PLS, CXO, ASN
Image source: © Malpetr | Megapixl.com

Highlights

  • As the prices of gasoline and diesel are soaring, electric vehicles are gaining more traction.
  • Lithium mining companies on the ASX are gaining popularity among investors as they provide exposure to the EV industry.
  • Australia is the world’s largest exporter of lithium and holds one of the world’s largest lithium reserves.
  • Several of the ASX-listed lithium stocks have given multi-fold returns in the last one year.

The crude oil price has soared more than 50% this year, with WTI crude oil currently trading above US$80/bbl. The prices of gasoline and diesel in importing nations have reached an alarming level.

Amid the current scenario, governments around the world are concerned that rising fuel prices will create inflammatory pressure and could impact their economic recovery efforts.

Five ASX lithium stocks to explore amid buoyant EV space

As fuel prices continue to soar, popularity of electric vehicles (EVs) is also surging due to their various benefits. Globally, governments have already been promoting EVs through tax incentives. Now, the rising gasoline prices are expected to further fuel the growth momentum in the EV space.

Related read: Three ASX-listed undervalued lithium stocks

Lithium stocks, VUL, ORE, PLS, CXO, ASN

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Lithium is the fuel powering EVs. Lithium is the main component in EV batteries. It generates enough electricity for charging the battery, which then rotates the cranks of motors to deliver the required horsepower.

Amid the current buoyant settings, investors are focusing on lithium stocks to gain exposure in the EV segment. As Australia holds one of the largest reserves of the battery material, ASX-listed lithium stocks are also gaining popularity.

Let us glance through a few ASX-listed lithium stocks that have delivered robust returns in the last one year.

Vulcan Energy Resources Limited (ASX:VUL)

Vulcan Energy is targeting to produce battery-grade lithium with zero carbon footprint. The Company holds one of Europe’s largest lithium resources in the Upper Rhine Valley in Germany.

The Company aims to make Europe self-reliant for lithium, enabling the region to significantly lower its imports.

Vulcan recently entered into a binding offtake agreement for lithium hydroxide with Umicore. Poland-based Umicore is into cathode material production.

Related read: Vulcan hits a key milestone, produces its first battery-quality lithium product

Orocobre Limited (ASX:ORE)

Orocobre operates the world’s first-commercial brine-based lithium operation in collaboration with Toyota Tsusho Corporation and JEMSE.

Orocobre is an established producer of lithium and boron. The Company operates the Olaroz Lithium Facility in Argentina and extracts lithium carbonates from its brine resources.

Orocobre is coming up with a lithium processing facility in Japan that will process lithium carbonate into battery-grade lithium hydroxide. ORE holds a 75% interest in the processing facility.

Related read: Orocobre and Galaxy Resources’ merger set to create a lithium giant

Pilbara Minerals Limited (ASX:PLS)

A leading ASX-listed pure-play lithium company Pilbara Minerals operates one of the world’s largest hard-rock lithium operations located in the Pilbara region of Australia. The Pilgangoora Project produces tantalite and spodumene concentrate at a low cost.

For the supply of spodumene, Pilbara Minerals has partnered with General Lithium, Great Wall Motor Company, Ganfeng Lithium, CATL, POSCO, and Yibin Tianyi.

Related read: Lithium player Pilbara Minerals (ASX:PLS) hits an all-time high

Core Lithium Limited (ASX:CXO)

Core Lithium has given excellent returns to its shareholders in the last one year. The Company operates one of the most advanced lithium projects in the Northern Territory.

The DFS study of the Finniss Lithium Project has highlighted that the project would produce 173,000 tonnes of high-quality lithium concentrate annually at an OPEX of US$364/t.

Also read: What’s latest with these three ASX lithium penny stocks?

Anson Resources Limited (ASX:ASN)

Anson Resources operates the Paradox Basin Brine Project in the United States. The Company is targeting to supply high-quality lithium concentrate to the rapidly evolving battery market of the United States.

The Company also operates a Ni-Cu-PGE project in Australia, which provides diversity to its assets portfolio.

Related read: Three exciting ASX-listed lithium stocks under AU$1

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