Australia is the world's leading producer of lithium, and the need for lithium-based power across the world offers Australia substantial opportunities. Australia now uses high levels of output and large reserves to influence the battery industry landscape well into the 2030s as nations and firms carve out their places in the value chain. The demand for lithium will largely depend on how quickly the electric vehicle (EV) market expands in the future. This rapid growth has increased the amount of lithium mined to the point where there is currently an excess supply on the market.
Although there was an excess of lithium available, which kept prices low in the first half of 2024, analysts continue to predict that lithium will have a promising long-term future as nations work toward net-zero emissions. Here the Investing News Network looks at the top three ASX-listed lithium companies by year-to-date gains. The list below was generated using TradingView’s stock screener on July 16, 2024, and includes companies that had market caps above AU$10 million at that time. In this article, we outline three lithium companies on the ASX to watch.Â
1. Prospect Resources (ASX: PSC)Â
Year-to-Date Gain: 40.45%; Market Cap: AU$59.84 million; Share Price: AU$0.1240
Prospect Resources is a lithium explorer that focuses on a diverse portfolio across Africa with properties in Namibia, Zambia, and Zimbabwe. Omaruru and Step aside, the company’s main lithium projects are located in Namibia and Zimbabwe respectively. Prospect published an update on its exploration effort at the end of June. The business revealed this following its Phase 2 drilling in Omaruru and announced encouraging assay findings from its Phase 4 diamond drilling at Step Aside.Â
Sam Hosack, Managing Director, emphasizes both properties' substantial mineralization potential. Prospect intends to shift its focus on its Mumbezhi copper project and reduce expenditures on its lithium projects going forward. The business thinks it can support this objective by making money off of Step Aside. On May 27, company shares reached AU$2.05, the highest level in the first quarter of 2024.Â
2. Vulcan Energy Resources (ASX: VUL)
Year-to-date gain: 49.12%; Market Cap: AU$835.56 million; Current Share Price: AU$4.25
Vulcan Energy Resources - whose activities are focused in Europe -Â use geothermal brine to produce lithium and renewable energy to contribute to a carbon-neutral future, providing the tool for companies and governments to leverage. The Zero Carbon lithium project is currently being developed by the firm in the Upper Rhine Valley of Germany. This project will provide sustainable lithium for the European EV industry, and the company is producing lithium using a patented alumina-based adsorbent-type direct lithium extraction technology.Â
The manufacturing of lithium chloride at Vulcan's lithium extraction optimization plant in Germany began on April 11. The company claims that this significant achievement is the first local supply-based manufacture of lithium chemicals in Europe. The facility continuously demonstrated an extraction efficiency of above 90% for lithium. The 40 million euro plant will now be ready for commercial production by Vulcan with significant/large automakers and battery producers entering into legally-binding lithium agreements with the company.Â
During the first stage of production, the company anticipates providing enough lithium to power 500,000 EVs, and Vulcan shares reached a high of AU$5.54 in the first half of the year.Â
3. Anson Resources (ASX: ASN)
Year-to-date gain: -14.29%; Market Cap: AU$154.9 million; Share Price: AU$0.12
Anson Resources is the owner of a portfolio of US and Western Australian projects. Its main asset is the Paradox lithium project in Utah, which Anson is developing into a significant facility for producing lithium for the US market. The Utah Department of Natural Resources permitted Anson on May 8 to use brine, or source water, for lithium extraction at its Green River lithium project. The authorization permits the corporation to process 19 cubic feet of brine for non-consumptive use before returning it to its natural geological formation.
This is the first time the company has received clearance for a permit to produce lithium from Utah brine. Anson and Koch Technology Solutions collaborated to employ Koch's Li-Pro method for a trial Lithium Selective Sorption unit at the Green River lithium project in late June. The pilot project will gather data in preparation for the possible start-up of a commercial-scale facility utilizing the technology. It is jointly sponsored by Anson Resources and Koch through a convertible note. The production pilot began in July and Anson’s shares reached a high of AU$0.16.
In 2020, the total demand for lithium worldwide amounted to 292 thousand metric tons of lithium carbonate equivalent. It is forecast that by 2030 this quantity will increase to approximately 2.5 million metric tons. To put this into perspective, your car and electricity will most likely be powered by lithium batteries, which is why investors are looking for stocks that can boost their portfolio over the long run and insulate it against shocks. If you are investing in the ASX or thinking about investing, you should consider these three stocks, which have great potential.
