5 Canadian lithium stocks to buy as Quebec attracts EV makers

Highlights

• Quebec is reportedly in talks with electric vehicle (EV) giant Tesla Inc regarding its battery production.
• Demand for lithium could grow in the future with the rise of EV usage and its battery technologies.
• A company mentioned here saw its stock price rocket by about 650 per cent over the last 12 months.

Amid rising interest in electric vehicles (EV), Canadian province Quebec is reportedly in talks with EV giant Tesla Inc (NASDAQ:TSLA) regarding its battery production.

Pierre Fitzgibbon, the province’s Economy Minister, is said to have met with Tesla executives regarding its supply needs for battery production.

Quebec is known to be rich in resources, especially in elements like lithium and nickel, which are needed in the production of EV batteries. Hence, it has been drawing the interest of battery and EV makers for a while now.

Also read: Is it the right time to invest in an electric vehicle?

That said, let us discuss five Canadian lithium companies that have given significant return to their shareholders over the past year.

Image source: © 2021 Kalkine Media Inc      

1.    Lithium Americas Corp (TSX:LAC)

Canadian resource company Lithium Americas Corp owns and operates lithium brine projects in Argentina and the United States.

On Tuesday, November 9, Lithium Americas saw its stock clock a day high of C$ 44.69. At market close, its stock price was C$ 43.08 apiece.

Apart from hitting a fresh 52-week high on November 8, LAC stock has soared by about 100 per cent in the past three months.

In the last six months, the stock increased by more than 172 per cent, while its year-to-date (YTD) return stood at roughly 170 per cent.

The lithium stock also noted a return of nearly 225 per cent over the past year.

With a market capitalization of C$ 5.16 billion, Lithium Americas held a price-to-book (P/B) ratio of 7.638 and a debt-to-equity (D/E) ratio of 0.28.

The company has made an offer to acquire Millennial Lithium Corp (TSXV:ML), a fellow producer that owns 100 per cent stake Pastos Grandes Project, it announced on November 1.

2.    American Lithium Corp (TSXV:LI)

Stock of American Lithium Corp, a Canadian lithium explorer, closed at C$ 4.95 apiece on November 9, up by roughly 100 per cent for the last month. It has also swelled by about 200 per cent for the last three months.

American Lithium’s scrip has yielded a one-year return of more than 354 per cent. It has gained nearly 306 per cent YTD.

On the valuation side, its P/B ratio stood at 6.781 on Wednesday, November 10.

Also read: 2 Canadian hydrogen stocks to buy in November

3.    Rock Tech Lithium Inc (TSXV:RCK)

Rock Tech Lithium Inc is a Canadian lithium development that makes lithium hydroxide solutions for automobile industry, with operations in Canada and Germany.

Rock Tech’s stock closed at C$ 7.05 apiece on November 9, noting a rise of 1.732 per cent, up by almost 73 per cent in the last six months.

RCK stock has grown by more than 317 per cent on a YTD basis and rocketed by about 650 per cent over the last 12 months.

 Image source: © 2021 Kalkine Media Inc   

Rock Tech held a P/B ratio of 20.735 and a D/E ratio of 0.01 on November 10.

4.    Standard Lithium Ltd (TSXV:SLI)

Canadian lithium firm Standard Lithium Ltd, which is working on carbon capture technology, saw its stock wrap up trade at C$ 13.75 apiece on November 9. Its hit a day high of C$ 14.4 during the session.

SLI stock has expanded by more than 257 per cent in the past six months. Its stock price has noted a YTD gain of more than 382 per cent, while its has elevated by almost 552 per cent over the past one year.

Also read: Is Frontier Lithium (TSXV:FL) an EV stock to buy?

5.    Sigma Lithium Corporation (TSXV:SGML)

Pure-play lithium firm Sigma Lithium Corporation focuses on developing eco-friendly solutions to support the global electric vehicles space.

Sigma stock was priced at C$ 11.79 apiece at market close on November 9, up by more than 103 per cent for the last six months.

The lithium stock also jumped by more than 362 per cent on a year-over-year (YoY) basis, while marking a YTD return of more than 294 per cent. 

Bottom line

With Quebec drawing the attention of EV makers with its natural resources, Canadian lithium companies could gain momentum in the long. Furthermore, the rising demand for EVs and battery technologies could boost that of lithium production in the future as well.

However, it is important to keep a close eye of a company’s expansion plans, projects and financials before investing.