Best Lithium Stocks in Canada

The demand for lithium is skyrocketing as the world shifts towards renewable energy sources. This has led to a surge in the demand for lithium stocks, and Canada is at the forefront of producing high-quality lithium. So if you’re looking to invest in the lithium industry, Canada is one of the places to be.

But with so many options available, it can be overwhelming to determine which lithium stocks are the best to invest in. So in this article, we’ll mine deeply into the Canadian lithium stock market and provide a comprehensive list of the top companies to invest in. So whether you’re a seasoned investor or just starting, we’ve got you covered.

So, please sit back, relax, and explore the Canadian lithium stock market together, including mining, downstream use and battery recycling.

Why Invest in Canadian Lithium Stocks?

Lithium companies listed on the Toronto Stock Exchange (TSX) may be a potentially good investment in 2023 due to the increasing demand for lithium. Lithium is crucial for making the batteries that power electric vehicles (EVs). The growth of the EV market in Canada and globally is expected to drive demand for lithium higher in the coming years.

According to McKinsey, demand for lithium carbonate is expected to grow at a compound annual growth rate (CAGR) of 20% between 2021 and 2030. As a result, many lithium companies are expanding their operations to meet this growing demand.

Furthermore, lithium stocks have the potential to be highly volatile, which can lead to significant gains for investors. Despite some headwinds, such as tighter monetary policy and geopolitical risks, experts are optimistic about the Canadian equity market in 2023, which could benefit lithium companies listed on the TSX.

The Best Lithium Stocks in Canada

Companies listed on Canadian exchanges that are involved in the lithium sector are mainly lithium exploration and mining companies – but these businesses are at the forefront of the lithium industry in Canada and are most ready to capitalize on its growth.

There aren’t any publicly available lithium-battery recycling stocks on Canadian exchanges; we share some excellent options later in the article. You can also check out our overall battery producer stocks in Canada.

Please look at these pure-play lithium mining companies in Canada, which will get you the best exposure to lithium.

Small to Large Caps: ($400m+)

• Lithium Americas Corp. (TSX: LAC)
• Sigma Lithium Resources Corporation (SGMA.V)
• Standard Lithium Ltd. (TSXV: SLI)
• Sayona Mining Ltd (OTC: SYAXF)
• Patriot Battery Metals (TSXV:PMET)
• Lithium Ionic (TSXV:LTH)
• Rock Tech Lithium Inc. (TSXV: RCK)
• American Lithium Corp (TSXV: LI)
• Frontier Lithium Inc (TSXV: FL)
• Albemarle Corporation (NYSE: ALB)
• Livent Corporation (NYSE: LTHM)

Top Lithium Penny Stocks in Canada: (Under $400m)

• Brunswick Exploration (TSXV:BRW)
• QMC Quantum Minerals Corp (TSXV:QMC)
• Global Battery Metals (TSXV:GBML)
• E3 Lithium Ltd. (ETL.V)

Lithium Americas Corp. (TSX: LAC)

Lithium Americas Corp. has seen steady growth in its stock value over the past year, with shares up 19% since May 2022. The company’s latest earnings report, released in March 2023, showed a revenue of $8.3 million, an increase of 26% compared to the previous year. The company also reported a net loss of $10.8 million, a decrease compared to the last year’s net loss of $13.4 million.

Lithium Americas Corp. has significant long-term growth potential as it continues to focus on developing its lithium projects in Argentina and the United States. As a result, the company is positioned to benefit from the increasing demand for lithium, a key component of batteries used in electric vehicles.

According to McKinsey, demand for lithium carbonate is expected to surge from 500,000 metric tons in 2021 to three million metric tons in 2030, representing a 20% CAGR.

With Lithium Americas Corp.’s strong market position and expanding portfolio, the company is poised to capitalize on this growth in the lithium sector. The 4.25B market cap dwarfs many other companies on this list, and you can buy in on the TSX.

Standard Lithium Ltd. (TSXV: SLI)

Standard Lithium has been focused on developing lithium extraction technology using proprietary processing technology to produce high-purity, low-cost lithium at scale.

The company has recently completed a Preliminary Economic Assessment on its South Arkansas Lithium project, which outlines a plan to build a pilot plant and produce battery-grade lithium chemicals by the end of 2024. Standard Lithium also reported a significant increase in its lithium resource estimates at its flagship lithium project in Arkansas.

The company’s stock has seen strong growth in 2022. It is expected to continue growing in the upcoming years due to the increased demand for lithium as a critical component in batteries for electric vehicles and other energy storage applications. In addition, the company’s innovative technology and strategic partnerships with other industry leaders make it a promising long-term investment in the lithium sector.

Patriot Battery Metals (TSXV:PMET)

Patriot Battery Metals is a Canadian exploration and development company focusing on advancing its Corvette lithium property in Quebec’s James Bay region. The property spans over 200 square kilometres and has shown high-grade lithium mineralization.

The company’s recent drill results have shown impressive results, and it is continuing to expand its exploration efforts. As demand for lithium continues to increase, the company’s focus on the exploration and development of its lithium property positions it well for long-term growth in the sector.

Brunswick Exploration (TSXV:BRW)

Brunswick Exploration is a Canadian mineral exploration company focused on discovering and developing high-quality battery metals, including lithium, in North America.

The company recently optioned a property that has the potential for lithium-cesium-tantalum mineralization. In addition, its exploration efforts have yielded promising results, including high-grade lithium mineralization.

With an increasing demand for lithium, Brunswick’s focus on discovering and developing new sources of the mineral positions it well for growth in the sector.

QMC Quantum Minerals Corp (TSXV:QMC)

Quantum Minerals is a Canadian-based lithium mining company focusing on the exploration, development, and production of its lithium assets. The company’s flagship project, the Irgon Lithium Mine, is located in Manitoba, Canada, and has shown significant lithium mineralization.

Quantum has also been expanding its exploration efforts to other areas in Canada. As a result, the company’s growth potential in the sector is promising, and its focus on the exploration and development of lithium assets should position it well for long-term growth.

Global Battery Metals (TSXV:GBML)

Global Battery Metals is a Canadian exploration company focused on discovering and developing high-quality battery metals, including lithium.

The company’s focus on lithium assets has shown promising results, including high-grade lithium mineralization in its Nevada property. It has also been expanding its exploration efforts in other areas of Canada.

The company’s focus on the exploration and development of lithium assets positions it well for long-term growth in the sector.

Lithium Ionic (TSXV:LTH)

Lithium Ionic is a Canadian lithium extraction technology company that has developed a new technology for extracting lithium from brine sources. The company’s technology offers a more environmentally friendly and cost-effective approach to lithium extraction than traditional methods.

The company has been expanding its operations and has recently signed an agreement to acquire a lithium brine property in Argentina. Its innovative technology and focus on lithium extraction make it an exciting investment opportunity.

Rock Tech Lithium Inc. (TSXV: RCK)

Rock Tech Lithium Inc. (TSXV: RCK) is a Canadian-based lithium and rare metals exploration and development company with two primary projects: Georgia Lake in Ontario, Canada, and LiDAR in Germany.

The company is currently exploring and has not yet reached production. However, it has secured a strategic partnership with international minerals trading and mining company Ferrostaal Metals GmbH, which provides Rock Tech Lithium with access to technical expertise and potential buyers for its future production.

Rock Tech Lithium’s long-term growth potential in the lithium sector in Canada is promising, as demand for lithium is expected to continue increasing with the growth of the electric vehicle market. In addition, the company’s focus on lithium and rare metals in Canada and Germany diversifies its portfolio and provides potential for international growth.

However, as a small-cap exploration company, there is also a higher risk associated with investing in Rock Tech Lithium than in larger, more established companies.

E3 Lithium Ltd. (ETL.V)

E3 Lithium Ltd., formerly E3 Metals Corp, has been performing well in the lithium sector in Canada. In its recent earnings report, the company announced that it had made significant progress in developing its lithium projects, including completing a pilot plant program and acquiring additional lithium brine assets.

E3 Lithium also announced that it had signed a letter of intent with Livent Corporation to develop its lithium projects jointly. It is expected to provide the necessary funding and expertise to advance its projects further.

The company is expected to continue growing, especially given the rising demand for lithium and the company’s strategic partnership with Livent Corporation.

Sigma Lithium Resources Corporation (SGMA.V)

This Canada-based company is engaged in the exploration and production of lithium concentrate in Brazil. The company’s operations are focused on developing its Grota do Cirilo project, one of the world’s largest hard rock lithium deposits.

Sigma Lithium has recently received approval for expanding its production capacity. As a result, it is expected to increase its lithium concentrate output and support its long-term growth potential in the lithium sector.

Sayona Mining Ltd (OTC: SYAXF)

This company is engaged in the exploration and development of lithium projects in Canada and Australia. The company’s flagship project, the Authier Lithium Project in Quebec, has an estimated mineral resource of 17.15 million tonnes of lithium oxide and is expected to produce high-quality lithium concentrate for the growing electric vehicle market.

Sayona Mining has recently secured financing for the development of its project. As a result, it is expected to begin production soon, which could support its long-term growth potential in the lithium sector.

Frontier Lithium Inc (TSXV: FL)

This company is engaged in exploring and developing lithium projects in Canada. The company’s flagship project, the PAK Lithium Project in Ontario, has an estimated mineral resource of 24.3 million tonnes of lithium oxide and is expected to be one of the lowest-cost producers of lithium in the world.

Frontier Lithium has recently received approval for the development of its project. It is expected to begin production shortly, which could support its long-term growth potential in the lithium sector.

American Lithium Corp (TSXV: LI)

This exploration and development company is focused on developing lithium projects in Nevada, USA, and has a market capitalization of $421 million.

American Lithium Corp is currently developing its Tonopah Lithium Claims project, which is expected to produce high-grade lithium from the Montezuma Lithium Claystone Formation.

The company has recently announced positive drilling results and is planning to advance the project to the next stage of development.

Albemarle Corporation (NYSE: ALB)

This multinational corporation is one of the largest producers of lithium in the world, with operations in the United States, Chile, and Australia. Albemarle has a market capitalization of $29.7 billion and is considered a leader in lithium production for batteries.

The company has been expanding its production capacity to meet the growing demand for lithium and recently announced a $1.3 billion investment to build two new lithium production facilities in Australia.

Livent Corporation (NYSE: LTHM)

This multinational corporation produces lithium compounds in various applications, including batteries, ceramics, greases, and polymers.

Livent operates in the United States, China, and Argentina and has a market capitalization of $5.9 billion.

The company has been expanding its production capacity to meet the growing demand for lithium, and recently signed a strategic partnership with E3 Metals Corp. to help develop lithium projects in Alberta, Canada.

What’s the Top Lithium ETF in Canada?

The Global X Lithium & Battery Tech ETF (LIT) is one of the top lithium ETFs in Canada. LIT is a cross-listed ETF traded on multiple exchanges, including the Toronto Stock Exchange (TSX).

It provides exposure to companies involved in the full lithium cycle, from mining and refining to battery production and energy storage solutions. The fund holds positions in companies across the globe, including in Canada, the United States, and China.

LIT has a relatively high expense ratio of 0.75% but offers investors a convenient and diversified way to invest in the growing lithium and battery technology sector.

What is Lithium Used For? 

The Electric vehicle industry has shown enormous growth in recent years. As the world moves towards an EV era, the demand for their raw materials and lithium stocks in Canada have soared in parallel. Electric vehicles are powered by lithium-ion batteries, making lithium an essential resource in EV production.

The scope of its use makes this shiny metal even more enjoyable. The use of lithium is not only limited to the automobile industry. It is the power cell for most smartphones and other electronic gadgets nowadays.

This bloom in lithium-ion batteries’ demand has attracted many investors, constantly looking for ways to get their hands on this valuable commodity and learn more about lithium companies.

According to the Government of Canada, lithium is mainly used to make energy-dense rechargeable batteries for electronics such as laptops, cell phones, electric vehicles, and grid storage. However, it is also used in various industrial applications, including glass and ceramics manufacturing, air treatment, and lithium greases.

Lithium has potential applications in medicine and agriculture, such as treating bipolar disorder and as a nutrient supplement for crops.

Are There lithium mines in Canada?

The largest lithium mine in Canada has not yet opened. There is currently only one functional lithium mine in North America, located in La Corne, Quebec, and set to open in March 2024 [1]. Canada does not currently produce lithium on a large scale, but it does have significant lithium resources, including hard rock spodumene deposits and brine-based lithium resources [2]. Therefore, there is potential for more lithium mines to be developed in the future.

Although Canada does not produce lithium, it has sizeable hard rock spodumene deposits and brine-based lithium resources from which lithium can be extracted. As such, Canada is exploring the development of new lithium projects, as highlighted in the country’s Critical Minerals Strategy.

Some Canadian-based companies have active lithium projects in the country. In addition, the page from Natural Resources Canada states that global exploration for lithium is ongoing, which could lead to new lithium projects being considered in Canada.

What Industries in Canada Use Lithium?

Canada is involved in glass and ceramics manufacturing and air treatment, but there is no mention of the production or use of lithium greases in Canada.

Lithium compounds, including lithium carbonate and lithium hydroxide, are used in glass and ceramics manufacturing to improve the strength and durability of the materials.

Air treatment is another industry that uses lithium compounds, specifically lithium chloride, as a desiccant for dehumidification. Similar to graphene

Of course, we hugely leverage lithium batteries, but Canada is not responsible for their production yet, only consumption. Graphene producers are also needed for Li-On batteries.

Who produces the most Lithium?

No Canadian companies are among the largest lithium producers in the world. However, Albemarle, a company based in the United States, is one of the largest lithium producers in the world.

Quantum Minerals is a Canadian lithium, gold, and copper company with projects in Manitoba, but it is not among the largest lithium producers.

Meanwhile, Quebec has the most significant number of active lithium projects in Canada, but the companies operating these projects are not among the largest lithium producers globally. It is worth noting that Australia is currently the world’s largest lithium producer.

Which company recycles lithium batteries?

Two companies focus on lithium battery recycling in Canada. The first company is Li-Cycle, which specializes in recycling lithium-ion batteries and recovering critical materials such as lithium, cobalt, and nickel. This company is publicly traded as NYSE: LICY.

The second company is Lithion Recycling, based in Quebec and focuses on recycling lithium-ion batteries from electric vehicles and stationary energy storage systems. This company is not publicly traded.

Both companies have been recognized for their innovative technology and leadership in battery recycling. It is important to note that other companies may also engage in battery recycling, but these two companies are the ones that specifically focus on lithium-ion batteries.

How To Invest in Lithium in Canada:

There are several ways to invest in lithium in Canada:

1. Invest in individual lithium stocks: Investors can invest in individual lithium mining, production, refinement, and distribution companies listed on Canadian exchanges, such as the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSXV).

2. Invest in lithium-focused ETFs: Investors can also invest in exchange-traded funds (ETFs) focusing on lithium and other battery metals. For example, the Global X Lithium & Battery Tech ETF (LIT) and the Horizons Global Lithium Producers Index ETF (HLIT) are popular options.

3. Invest in mutual funds: Investors can also invest in mutual funds that hold shares in lithium companies. Some mutual funds, such as the Fidelity Select Materials Portfolio, have significant exposure to lithium companies.

4. Invest in lithium futures: Another way to invest in lithium is through the futures market. However, this is a more complex and risky investment strategy and is generally only suitable for experienced investors.

The trend in Lithium Prices

Lithium futures prices have exploded over the past few years due to the demand for new technologies. The price has plateaued in our current market with bearish flags waving, but this won’t last forever.

We anticipate the future trend of lithium prices to increase as the demand will continue to grow for this finite resource. We think that demand will outpace supply, even with the world’s largest suppliers producing lithium – there will be too much global demand.

That is, unless another mineral or fuel cell can replace the lithium-ion EV battery, which will eventually happen with innovations.

Canadian Lithium Stocks Can Still Explode

While the lithium sector has seen significant growth in recent years, many experts believe the industry still has room for growth, especially with the continued demand for electric vehicles and renewable energy. Elon Musk’s recent call to produce more lithium globally is a testament to this.

As the world transitions towards a more sustainable future, demand for lithium will continue to rise. Lithium-ion batteries, used to power electric vehicles and store energy from renewable sources like solar and wind power, are a crucial driver of this demand. According to BloombergNEF, the lithium-ion battery market is expected to grow at a compound annual growth rate of 20% through 2030, driven by the growth of the electric vehicle market.

Moreover, the global shift towards renewable energy is expected to create significant demand for energy storage systems, further driving the need for lithium-ion batteries. As a result, lithium stocks are likely to continue to experience growth in the coming years as the industry continues to expand to meet the growing demand for lithium.