Lithium is a metal element that has been used in various products for many years. It was initially commonly found in lithium brine, but as the demand for lithium increased, companies began mining it from other sources such as hard rock and pegmatite.
Lithium is now being used in many different types of batteries, driving up demand for this mineral resource. In particular, the electric car revolution has been a critical factor in the increased demand for lithium. This is because the resource is a key component in lithium-ion batteries used to power electric cars.
With analysts expecting 40% of all car sales to be electric vehicles by 2030, lithium is fast becoming one of the most valuable resources in the mining industry.
As demand only increases, investors across multiple stock markets are flocking to mining companies hoping they can get a foot into the boom. If we have piqued your interest in lithium mining, here are our top five picks that are worth keeping an eye on for 2022.
Lake Resources NL
Lake Resources (ASX: LKE) is an Australian mining company with multiple brine and pegmatite projects in Argentina's Lithium Triangle. This region alone produces 40% of the global lithium supply at the lowest cost, making this mining stock a mouth-watering option for investors.
In their latest annual report, Lake Resources announced a 110% increase in their Kachi project value, producing up to 25,500 tpa lithium carbonate. As a result, the mining company announced an AU$25 million year-end cash balance, currently sitting at a market cap of AU$1.2 billion.
Finally, Lake Resources plans to accelerate explorations in their Cauchari brines to further diversify their portfolio and continue their strong growth. Therefore, making this stock an interesting one to keep an eye on in 2022.
Medaro Mining
Medaro Mining (OTCMKTS: MEDAF) is a Canadian lithium mining company with a focus on becoming a key player in the lithium space. The company’s flagship project is the Centenario brine project in Argentina, with an estimated production rate of 25,000 tonnes of lithium carbonate per year. The company operates with innovative and cost-effective technology that can extract lithium sustainably and efficiently. This makes Medaro Mining an ethical investment for those looking to park their money in an eco-friendly way.
Over the past year, Medaro Mining has been aggressive in acquiring several projects in prospective exploration zones. Most notably, their joint venture with Lithium Extraction Technologies Inc recently achieved their highest production performance to date. The extremely lucrative joint venture is only set to increase in its performance of clean lithium production, with company President Faizaan Lalani stating: “As each step of our R&D moves us forward, we are increasingly confident that our partners, stakeholders, future clients, and shareholders will be increasingly impressed with the results of our efforts.”
Currently, the mining company sits at a market cap of US$27.2 million, opening at $0.74.
Livent Corp
Livent Corp (NYSE: LTHM) is a lithium producer spun out of FMC Corp in October 2018. The company has an extensive portfolio of brine and hard rock lithium operations across Argentina, Australia and the United States. Livent is a potentially lucrative option for investors due to their supply deals with major electric vehicle players, including Tesla and BMW.
In their third-quarter report, Livent announced that revenue was up US$103.6 million, a 43% increase from last year's results. With strong backing from some significant supply deals, the company has backed itself as a key player in the lithium mining industry. The company has a US$3.85 billion market cap, opening at $23.95.
In conclusion, lithium is clearly becoming an extremely important mineral, and the lithium mining industry is growing rapidly to meet the inevitable rise in demand thanks to the electric car revolution. If you're interested in riding the wave of this mining boom and diversifying your investment portfolio, our top 3 picks for 2022 can be a good starting point for entering the market!.
