In this article, we will discuss the 15 biggest lithium battery stocks. If you want to explore similar stocks within the lithium industry, you can also take a look at Lithium Stocks List: 5 Biggest Lithium Stocks.
At a time when the world is at a crossroads with regard to climate change, lithium has risen from once being an inconsequential mineral compared to silver and gold, to being critical in the move against carbon emissions. Characterized as a soft, silver-white alkali metal that is found within brine reservoirs and lithium-containing rocks, such as spodumene, lithium is vital for the production of virtually all traction batteries currently used in EVs as well as consumer electronics. Although electric vehicles have been around for some years now, they have only recently become a more viable option for consumers, thanks to technological advances and a decrease in cost. In tandem, the need for lithium to meet consumer ends has increased as well. Based on a report by the International Energy Agency, the demand for lithium for use in EVs and battery storage is forecast to grow by over 40 times between 2020 and 2040.
According to an industry analysis report by Grand View Research, the global lithium market size was valued at $6.83 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.0% from 2022 to 2030. This growth is attributed to favorable demand trends for consumer electronics worldwide, a surge in demand for rechargeable batteries, the rising adoption of electric vehicles, and government initiatives and incentives for more sustainable energy alternatives. That said, however, meeting the demand for lithium will not be a trivial problem, as a report by McKinsey states that the surging EV demand in 2020 has seen lithium prices skyrocket by around 550% in a year. By the beginning of March 2022, lithium carbonate prices had passed $75,000 per metric ton while lithium hydroxide prices had exceeded $65,000 per metric ton.
The lithium market is expected to experience strong secular growth and stocks playing in this industry can be an ideal way for investors to capitalize on these trends. This article will examine some of the leading companies operating in the global lithium battery market, which include Livent Corporation (NYSE:LTHM), Sociedad Quimica y Minera (NYSE:SQM), and Albemarle Corporation (NYSE:ALB), among others discussed below.
To determine the 15 biggest stocks, we scoured industry analysis reports and identified key players operating in the space. We filtered out the best companies based on their market positions and project pipelines. Further, we gave weight to the market sentiment around each stock and included stocks that had positive analyst sentiment and positive hedge fund sentiment. The stocks on this list are ranked according to the number of hedge funds that hold stakes within them.
Lithium Stocks List: 15 Biggest Lithium Stocks
15. Standard Lithium Ltd. (NYSE:SLI)
Number Of Hedge Fund Holders: 3
Standard Lithium Ltd. (NYSE:SLI) is a Canadian-based materials company that is involved in the lithium mining and processing industry. Ranked among the biggest lithium stocks, the company's flagship project is located in southern Arkansas, where it is engaged in the testing and proving of the commercial viability of sustainable lithium extraction from over 150,000 acres of permitted brine operations.
On November 1, Standard Lithium Ltd. (NYSE:SLI) announced that the company has received Notices of Allowance for its first two U.S. patent applications for its DLE technology from the USPTO. Additionally, the company announced that it has completed all necessary agreements with Lanxess Corporation to secure access to a proposed commercial lithium plant site.
At the end of Q3 2022, 3 hedge funds were long Standard Lithium Ltd. (NYSE:SLI) and held positions worth $443,000 in the company. Of those, Millennium Management was the largest shareholder in the company and held a position worth $220,000.
Much like Livent Corporation (NYSE:LTHM), Sociedad Quimica y Minera (NYSE:SQM), and Albemarle Corporation (NYSE:ALB), Standard Lithium Ltd. (NYSE:SLI) is a decent lithium stock.
14. Sigma Lithium Corporation (NASDAQ:SGML)
Number Of Hedge Fund Holders: 8
Sigma Lithium Corporation (NASDAQ:SGML) is a leading Canadian mining company that is focused on the exploration and development of lithium deposits in Brazil. The company holds 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 27 mineral rights covering an area of approximately 191 square kilometers.
On December 5, Canaccord analyst Katie Lachapelle raised the price target on Sigma Lithium Corporation (NASDAQ:SGML) to C$64 from C$45 and maintained a Speculative Buy rating on the shares of the company. As of December 19, the stock has gained 232.51% year-to-date.
At the end of Q3 2022, 8 hedge funds held stakes in Sigma Lithium Corporation (NASDAQ:SGML). The total value of these stakes amounted to $45.5 million, up from $23.7 million in the previous quarter with 3 positions. The hedge fund sentiment for the stock is positive. As of September 30, Potrero Capital Research is the largest investor in Sigma Lithium Corporation (NASDAQ:SGML) and has a stake worth $16.2 million in the company.
13. Piedmont Lithium Inc. (NASDAQ:PLL)
Number Of Hedge Fund Holders: 12
One of the world's lowest-cost producers of lithium, Piedmont Lithium Inc. (NASDAQ:PLL) is an exploration stage company that engages in the exploration and development of resource projects in the United States. The company primarily holds a 100% interest in the Carolina Lithium Project that include an area of approximately 3,116 acres located within the Carolina Tin-Spodumene Belt.
DA Davidson analyst Matt Summerville raised the price target on Piedmont Lithium Inc. (NASDAQ:PLL) to $90 from $85 and maintained a Buy rating on the shares. The analyst cites the recent developments across the company's global lithium assets, including a $142 million DoE grant for Tennessee Lithium.
At the close of the third quarter of 2022, 12 hedge funds were eager on Piedmont Lithium Inc. (NASDAQ:PLL) and disclosed positions worth $34.3 million in the company. This is compared to 11 hedge funds in the previous quarter with stakes worth $30.3 million. The hedge fund sentiment for the stock is positive.
12. Energizer Holdings, Inc. (NYSE:ENR)
Number Of Hedge Fund Holders: 13
Energizer Holdings, Inc. (NYSE:ENR) manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide hearing aid using lithium, alkaline, and carbon zinc, among other minerals and metals. The company has been recognized globally by its renowned brand Energizer, Eveready, Rayovac, and Varta.
Earlier this November, Barclays analyst Lauren Lieberman raised her price target on Energizer Holdings, Inc. (NYSE:ENR) to $35 from $32 and kept an Overweight rating on the shares. According to the analyst, Energizer "will be a company that ultimately emerges stronger from the myriad challenges of the pandemic."
Among the hedge funds being tracked by Insider Monkey, New York-based firm GAMCO Investors is a leading shareholder in Energizer Holdings, Inc. (NYSE:ENR), with 1.3 million shares worth more than $38 million.
11. QuantumScape Corporation (NYSE:QS)
Number Of Hedge Fund Holders: 14
QuantumScape Corporation (NYSE:QS) is an American company that develops solid state lithium metal batteries for electric vehicles. QuantumScape Corporation (NYSE:QS) began shipping the “A0” samples of its battery cells to its automaker clients on December 20, a key milestone that the company was expecting to reach by the end of the year. These samples are nearly full-size prototypes that will allow the automakers to test and begin the process of validating the company’s technology for automotive use.
Earlier this September, Truist analyst Jordan Levy initiated coverage of QuantumScape Corporation (NYSE:QS) with a Hold rating and $10 price target. According to the analyst, the company has become a leading name in the rapidly growing EV battery industry space and has generated interest from numerous auto OEMs, including a multi-year JV with Volkswagen. Levy adds however that while QuantumScape batteries could eventually come to play a significant role in advancing EV performance and costs, he sees "limited near-term upside" in the current market.
At the end of the third quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $76.46 million in QuantumScape Corporation (NYSE:QS), compared to 19 in the previous quarter worth $84 million.
10. Lithium Americas Corp. (NYSE:LAC)
Number Of Hedge Fund Holders: 14
Lithium Americas Corp. (NYSE:LAC) is Canadian mining company that is involved in the mined lithium-bearing spodumene and pegmatite ores in the United States and Argentina. The company's low-cost production facilities and strong position in the EV battery market give it a competitive advantage over its peers.
On December 15, Piper Sandler analyst Charles Neivert lowered the price target on Lithium Americas Corp. (NYSE:LAC) to $36 from $38 and kept an Overweight rating on the shares. As a result of the high electric vehicle costs and a slight easing in the near-term lithium demand growth rate, Neivert modestly reduced earnings estimates for the company. However, the new target still reflects considerable upside for the shares since, according to the analyst, lithium "will essentially be sold out for the foreseeable future."
At the end of Q3 2022, 14 hedge funds were bullish on Lithium Americas Corp. (NYSE:LAC) and disclosed stakes worth $172.3 million in the company. This is compared to 9 positions in the preceding quarter with stakes worth $110.8 million. The hedge fund sentiment for the stock is positive. As of September 30, Himension Capital is the largest shareholder in Lithium Americas Corp. (NYSE:LAC) and has a stake worth $85.6 million in the company.
9. Li-Cycle Holdings Corp. (NYSE:LICY)
Number Of Hedge Fund Holders: 15
Li-Cycle Holdings Corp. (NYSE:LICY) is a leading North American company that provides solutions for the recycling of lithium-ion batteries. The company's recycling process recovers up to 95% of all battery materials found within a spent Li-ion battery and reintroduces the materials back into the supply chain.
On December 15, Citi analyst P.J. Juvekar lowered the price target on Li-Cycle Holdings Corp. (NYSE:LICY) to $7.50 from $8 and kept a Buy rating on the shares. Although there is an inclination to go back to cyclical chemical names after having lagged in 2022, Juvekar has decided to "stay defensive" going into 2023. He believes the impact of higher rates and uncertainty of the China reopening situation is likely to continue to impact the industry.
At the close of the third quarter of 2022, 15 hedge funds were long Li-Cycle Holdings Corp. (NYSE:LICY) and held stakes worth $95.75 million in the company. Of those, Covalis Capital was the top investor that held a position worth $61.8 million in the company.
8. EnerSys (NYSE:ENS)
Number Of Hedge Fund Holders: 18
EnerSys (NYSE:ENS) is a stored energy systems and technology provider for industrial applications. The company manufactures and distributes reserve power and motive power batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure systems to customers worldwide.
On November 9, EnerSys (NYSE:ENS) released its earnings for the fiscal second quarter of 2023. The company reported an EPS of $1.11, surpassing consensus estimates by $0.03. The company's revenue for the quarter came in at $899.40 million, up 13.65% year over year, and beat Wall Street estimates by $11.92 million.
At the end of Q3 2022, 18 hedge funds disclosed stakes in EnerSys (NYSE:ENS) worth $251.2 million. This is compared to 20 positions in the previous quarter with stakes worth $222.8 million. As of September 30, Scopia Capital is the top shareholder in EnerSys (NYSE:ENS) and has stakes worth $86.6 million in the company.
7. FREYR Battery (NYSE:FREY)
Number Of Hedge Fund Holders: 22
FREYR Battery (NYSE:FREY) engages in the production and sale of battery cells for stationary energy storage, electric mobility, and marine applications in Europe and internationally. The company aims to provide industrial scale clean battery solutions to reduce global emissions.
Earlier this October, Cowen analyst Gabe Daoud initiated coverage of FREYR Battery (NYSE:FREY) with an Outperform rating and no price target. The analyst calls FREYR "a de-SPAC that has less technology risk than other startups," arguing that it stands out as a well-positioned advanced lithium-ion battery company leveraging MIT spin-out 24M's mature technology and management's manufacturing expertise.
At the end of Q3 2022, 22 hedge funds were bullish on FREYR Battery (NYSE:FREY) and disclosed stakes worth $381.2 million in the company. This is compared to 16 positions in the preceding quarter with stakes worth $205.2 million. The hedge fund sentiment for the stock is positive. As of Q3, Sylebra Capital Management is the top investor in the company and has a position worth $182.3 million.
6. FMC Corporation (NYSE:FMC)
Number Of Hedge Fund Holders: 28
FMC Corporation (NYSE:FMC) is an American chemical manufacturing company headquartered in Philadelphia, Pennsylvania, which originated as an insecticide producer in 1883 and later diversified into other industries. For decades, FMC Corporation (NYSE:FMC) has been recognized for its development and production of alkyllithiums, aryllithiums, lithium amides, lithium alkoxides and lithium metal hydrides, which are functionally used as reducing agents in the production of pharmaceutical and agricultural intermediates.
On November 15, Loop Capital analyst Christopher Kapsch upgraded FMC Corporation (NYSE:FMC) to Buy from Hold with a price target of $149, up from $132. The previous downgrade was based on the analyst's belief that the stock's valuation had gotten ahead of the story, but the company has executed well, which helped derisk its earnings progress. Kapsch adds that he is now picturing greater upside in FMC shares.
Ken Griffin’s Citadel Investment Group is FMC Corporation (NYSE:FMC)’s largest investor through a $130.17 million stake. As of Q3 2022, 28 hedge funds have positions in FMC Corporation (NYSE:FMC), compared to 29 in the previous quarter.
“FMC is an agricultural sciences company providing solutions for the protection of crops from different pests. Its products are used by farmers to ensure bugs, weeds and fungi do not negatively impact their harvest. Headquartered in Philadelphia, Pennsylvania, the company has a rich history dating back to 1883 when inventor John Bean set out to build a better insecticide spray pump. Over the decades, through acquisitions, FMC became a disparate collection of chemical companies. FMC has transformed itself to solely focus on crop chemicals, having acquired DuPont’s crop chemicals portfolio in 2017, and completed the separation of its lithium business in 2019. FMC is now one of the largest patented crop protection companies globally.…” (Click here to see the full text)
Similar to Livent Corporation (NYSE:LTHM), Sociedad Quimica y Minera (NYSE:SQM), and Albemarle Corporation (NYSE:ALB),FMC Corporation (NYSE:FMC) is a lithium stock that investors should keep their eyes on.
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Disclosure: None. Lithium Stocks List: 15 Biggest Lithium Stocks is originally published on Insider Monkey.