In recent developments, it appears that investor favor towards lithium stocks might be shifting. Industry experts and market analysts suggest that spot prices for the two key raw materials of lithium-ion batteries, lithium carbonate and lithium spodumene, have likely bottomed out and are stabilizing, indicating potential future increases.
Depleting lithium inventories, particularly in China, have further fueled this optimism. China is the world’s largest consumer and producer of lithium products, and its lithium industry holds significant influence over global lithium prices, with fluctuations in supply and demand affecting the entire market. With diminishing inventories, a positive short-term catalyst could propel undervalued lithium stocks to new heights.
Let’s discuss three undervalued lithium stocks worth investors’ attention this month.
Piedmont Lithium (PLL) has rapidly increased its production capacity. Last year, the company obtained a mining permit for its lithium project in North Carolina. This project aims to establish a low-cost, sustainable lithium hydroxide production facility in North Carolina. Furthermore, Piedmont Lithium plans to further reduce costs and hopes to have a positive impact on cash flow.
Additionally, PLL intends to continue expanding large-scale lithium projects, aiming to solidify its position as a key supplier in the emerging electric vehicle market. The consensus among seven analysts indicates a 390.17% increase in earnings per share for PLL in the fiscal year 2025.
As the largest market cap lithium stock, Albemarle Corp. (ALB) remains a cornerstone of the industry. ALB plans to reduce capital expenditures from approximately $2.1 billion in 2023 to $1.6 billion to $1.8 billion. Additionally, the company is implementing cost-cutting measures, aiming to reduce costs by approximately $95 million annually.
Furthermore, ALB expects sales volume to grow by 10% to 20% in 2024. Thus, Albemarle may be one of the best blue-chip stocks among undervalued lithium stocks sought by investors.
Standard Lithium (SLI) focuses on high-grade lithium brine resources. The company has made significant progress in its 1A project. It plans to moderately scale up from the demonstration plant and aims to start producing battery-grade lithium carbonate in 2026. Additionally, the preliminary feasibility study of the Southwest Arkansas project indicates the potential for significant expansion of operations.
Last year, the company also reported an impressive lithium recovery efficiency of 96.1% using the Direct Lithium Extraction (DLE) process at the demonstration plant. These combined factors bode well for SLI’s prospects.
