The 3 Best Lithium Stocks to Buy in June 2024

Stock Market

With the world fighting to go green, we need as much lithium as possible. All of which will create substantial opportunities for some of the best lithium stocks to buy.

For one, according to Statista, global demand could reach 3.8 million tons by 2035. Two, the International Energy Agency says that based on current electric vehicles and battery storage needs, lithium demand could soar 13 times over by 2040. 

However, while demand gains momentum, supply could become an issue. In fact, according to a CNBC report, we could run into a supply deficit by next year

All of which could send lithium prices screaming higher, as we’ve seen with prior supply-demand imbalances. The IEA added that the recent pullback in lithium deterred investment needed to meet demand, “which is set to soar as many nations try to phase out sales of new internal combustion engine cars in the next decade,” says France24.com.

All of those issues could easily send some of the best lithium stocks significantly higher again, including:

Albemarle (ALB)

Source: IgorGolovniov/Shutterstock.com

Weakness in Albemarle (NYSE:ALB) is an opportunity.

At the moment, it’s again challenging support dating back to February, where it tends to bounce. In February, for example, it bounced from about $110 to $142.50. Then, in March it bounced from about $110 to $132.50. In April, it bounced from about $110 to a high of $137.50. Nowadays, while it hasn’t fallen to $110, it appears ready to bounce again.

In short, it appears to have reached peak pessimism.

Making it even more attractive, ALB just declared a 40-cent quarterly dividend, which is payable July 1 to shareholders of record as of June 14. Earnings have been as solid as possible with plummeting lithium prices. In its first quarter, ALB earnings per share of 26 cents beat by three cents. Revenue of $1.36 billion, while down 47.3% year over year, was in line with estimates.

With a good amount of weakness priced in, I’d buy and hold ALB at current prices.

Piedmont Lithium (PLL)

Source: T. Schneider / Shutterstock.com

Another one of the best lithium stocks to buy on weakness is Piedmont Lithium (NASDAQ:PLL).

Now trading at double-bottom support, it could easily turn higher on positive developments at its Caroline Lithium project from North Carolina. Not only did it just receive state approval for a permit for construction and operation of the mine, the company also believes it could be one of the country’s biggest sources of lithium for electric vehicle batteries.

“Technical studies have demonstrated that Carolina Lithium could be a low-cost producer of spodumene concentrate and lithium hydroxide, benefitting from exceptional infrastructure, minimal transportation distances, low energy costs, a deep local talent pool, and proximity to cathode and battery customers,” the company said

Even better, analysts at D.A. Davidson also reiterated a buy rating on the Piedmont Lithium stock, with a $60 price target. Plus, according to TipRanks.com, the consensus rating on PLL is a moderate buy, which is based on two buy ratings, and three hold ratings.

Sigma Lithium (SGML)

Source: Shutterstock

Even Sigma Lithium (NASDAQ:SGML) is a buy on weakness.

After running from about $11.50 to a high of $18.96, it just pulled back to $13.53, where I’d buy it again. From that last traded price, I’d eventually like to see the stock rally back to $35, as lithium prices regain momentum. In addition, analysts at Bank of America raised their price target on the stock to $29 from $27, with a buy rating. 

SGML also just announced it will double production of its Quintuple Zero Green Lithium – which is produced at its Greentech lithium plant that uses 100% renewable energy, 100% recycled water, and 100% dry-stacked tailings – to 520,000 tons per year. Plus, Sigma has plans to commission its Phase 2 Industrial Plant by year-end, with production expected by 2025.

Again, with the lithium story starting to regain momentum on supply-demand issues, Sigma Lithium could be another standout lithium stock.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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