While lithium stocks are under the spotlight recently, there is no doubt that there are still many undervalued lithium stocks out there. The reason is that millions of electric vehicles around the world require lithium batteries to power them, but the supply of lithium is not meeting demand. Once the market realizes that the supply gap can't be filled in the short term, the price of lithium will continue to rise, leading to the rise of related lithium stocks—— especially those that are still undervalued.
$Lithium Americas Corp.(LAC)$
Lithium Americas (NYSE:LAC) is always the first to be mentioned whenever it comes to undervalued lithium stocks. The first reason is that the company is still undervalued with the partnership with General Motors to mine lithium at the Thacker Pass mine. Second, the company will begin to deliver lithium products in 2026, generating significant revenue. The company just announced that it produced first batch of sub-battery grade lithium carbonate during commissioning in Caucharí-Olaroz project . In addition, Lithium Americas has just completed the acquisition of Arena, which owns 65% of the Sal de la Puna salt lake project in Argentina.
$Ganfeng Lithium Group Co. Ltd.(GNENF)$
Ganfeng Lithium (OTCMKTS:GNENF), with a current share price of $6.50, is largest producer of basic materials for lithium battery manufacturing in China. The company also supplies products to Chinese electric car makers and some U.S. electric car makers including Tesla. However, Ganfeng Lithium is severely undervalued with a PEG (price-to-earnings-to-growth ratio metric) of just 0.17 times. In addition to a new lithium battery project in Xiangyang (a city in Hubei Province in China) with nearly $360 million, the company is also investing about $130 million in its Argentine subsidiary to develop a lithium mine. The aggressive expansion contributes to this lithium stock a worthy buy for investors right now.
$American Lithium Corp.(AMLI)$
With a current share price of just $2, American Lithium (NASDAQ:AMLI) is one of the cheapest lithium stocks with a lot of upward potential. The company has two major lithium projects, the TLC lithium project near Tonopah, Nevada, and the Falchani lithium project in Peru, which is the sixth-largest lithium deposit in the world. Besides, the company has also just invested in Surge Battery Metals, an investment that American Lithium CEO Simon Clarke says will help
"continue the exploration and development of our lithium project in northern Nevada”. “ A promising claystone project that we believe has the potential to become a large-scale, high-grade deposit," he says.
$Piedmont Lithium Ltd(PLL)$
With a current share price of $57.71, Piedmont Lithium (NASDAQ:PLL) is also undervalued with strong catalysts ahead. The company is trying to carry out the construction of its mine in North Carolina, which could become one of the largest sources of battery-grade lithium for electric vehicles in North America. Additionally, after receiving $141.7 million funds from the U.S. government, regulators in North Carolina are requesting more information during their review process. Analysts are also bullish on PLL stock, with DA Davidson recently raising its price target on the stock from $90 to $96; and Roth MKM recently raises its price target from $150 to $190.
$Albemarle(ALB)$
Shares of Albemarle (NYSE:ALB) are currently trading at $223.09, which is still cheap. We had repeatedly mentioned this lithium stock in $195.54 as a buying opportunity; just two days later, ALB jumped to $218.82 and recently rose to $239. Personally, I'd like to see the stock rise to $250. Analysts at UBS just upgraded the stock to Buy with a $225 price target.
What’s more, even Benchmark sees ALB as the best "growth opportunity". ALB's sales are expected to grow about 12% a year from 2023 to 2025. Analysts at KeyBanc have raised their price target for ALB from $270 to $291. Even Citi analysts have just started to give ALB a Buy rating. The company's CEO Kent Masters just bought 5,470 shares at an average price of $181.64, totaling just under $1 million. Currently, He owns over 51,000 shares of Albemarle stock with value of nearly $10 million.
$Global X Lithium & Battery Tech ETF(LIT)$
For those who think individual stocks are under the uncontrollable investment risk, it’s advisable to take a look at the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT). The last time we mentioned this ETF, it was trading around $62.93; recently, it has risen to $67.70 and will continue to move higher on the back of the lithium boom. Personally, I think the price can hit to $73 if investors are patient enough. The ETF, which has a 0.75% fund fee, holds stocks investing in the entire lithium cycle, from metal mining and refining to the production of batteries.
$SPROTT LITHIUM MINERS ETF(LITP)$
The Sprott Lithium Miners ETF (NASDAQ:LITP) is the only exchange traded fund focusing purely on publicly traded companies in the lithium mining sector. The ETF is small with 0.65% fee. Since March, this ETF has risen from about $15 to $18.90. Considering the positive momentum in the lithium sector, investors can pay attention to the fund in next test prior resistance at $20.50 before continuing higher.
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