- Demand for key battery materials like lithium is significantly growing with the increasing importance of clean energy.
- SGML stock rocketed by nearly 306 per cent in 52 weeks.
- FL stock soared by over 295 per cent in 12 months.
Demand for key battery materials like lithium is significantly growing with the increasing importance of clean energy transition, particularly in the electric vehicles (EV) market. Rising oil and gas prices have also urged many people worldwide to reduce dependency on fossil fuels and make energy-efficient choices, commonly powered by lithium batteries.
Although the S&P/ TSX Venture Composite Index, which includes the following lithium stocks, has fallen by about 18 per cent, one need not undermine their future potential and keep in my the EV demand. Let us talk about them.
1. Standard Lithium Ltd (TSXV: SLI)
Along with its partners and South Arkansas Community College, Standard Lithium unveiled six new EV charging stations in El Dorado, Arkansas, on May 2. The lithium producer saw its stock grow by about 92 per cent year-over-year (YoY).
SLI stock has breached various resistance and support levels since its 52-week high of C$ 15.92 (October 27, 2021). Its Relative Strength Index (RSI) value never fell below 30 throughout the past one year and stood at 42.20 on May 6, according to Refinitiv.
2. Sigma Lithium Corporation (TSXV: SGML)
Sigma Lithium conducted a feasibility study at its 100 per cent owned Grota do Cirilo site in April to start lithium production. The mid-cap company said that the Phase 1 study included a base case to manufacture 2,30,000 tonnes per annum (tpa) of six per cent battery-grade lithium for eight years.
SGML stock rocketed by nearly 306 per cent in the past 52 weeks and achieved a 52-week high of C$ 24.51 (April 8). The lithium scrip noted an RSI value of 52.75 at the time of writing this.
3. Frontier Lithium Inc (TSXV: FL)
Frontier Lithium revealed its 2022 exploration program and targets, including drilling at the Spark deposit, mapping and prospecting, for its PAK Lithium Project on May 2. The company believes that there are more discoveries on the way, considering the Pennock pegmatite, which could help it in expanding its lithium resource base.
FL stock soared by over 295 per cent in the last 12 months and recently marked a new 52-week high of C$ 3.89 on May 5. FL’s RSI value was 52.96, as per Refinitiv.
4. American Lithium Corp (TSXV: LI)
American Lithium was one of the top-performing Venture 50 companies listed on the TSX Venture Exchange (TSXV) in 2022. Stocks of American Lithium were up by almost 50 per cent and had an RSI value of 42.16 while writing.
In addition, American Lithium is also exploring uranium opportunities at the Macusani site in Lima, Peru. Hence, this stock could also widen investors’ exposure to the uranium market.
5. Rock Tech Lithium Inc (TSXV:RCK)
Rock Tech Lithium was also named among the top 50 venture lists in 2022. The company aims to manufacture and supply lithium hydroxide manufacturers operating in Canada and Germany.
RCK stock spiked by nearly seven per cent in 52 weeks and was down by over 50 per cent from a 52-week high of C$ 9.38 (October 19, 2021).
The clean energy revolution has spurred people’s interest in EVs, and Lithium, being a key component, could also witness significant demand in future. Hence, such lithium stocks could help investors earn notable gains in future.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.