Download now: How To Invest in the Coming Bitcoin Boom

Lithium Mining Companies

The Lithium revolution has begun. There has never been a better time to invest in Lithium Mining Companies than now.

We have compiled a list of the top Lithium Mining Companies for you and have also provided some more detailed information below.

Top Lithium Mining Companies:

  • Sociedad Quimica y Minera (SQM)
  • Western Lithium (TSX: WLC; OTC: WLCDF.PK)
  • Lithium Americas (TSX:LAC)

Lithium mining stocks, like many strategic metals, got beaten down a bit in 2011.

Following the tough year, lithium stocks saw a mixed year through 2012.

A look at a chart of the most recognizable names in the business — China BAK, Exide, Johnson Controls, Maxwell Technologies, etc. — illustrates this perfectly:

lithiumstocks2012

And though the battery manufacturing sector was down 11% in 2012 as a whole, the same was not true for the miners and processors of the materials necessary to make lithium batteries...

Besides their well-known use in the expanding electric vehicle market, lithium is also essential for cellphones, laptops, and other electronic devices that require long-lasting battery power. It is also used heavily in ceramics and glass products.

lithium uses

While you can play lithium in many areas, like battery manufacturers and developers, those companies must first get their hands on the raw material itself...

The ever-increasing demand for storage capacity is leading some analysts to predict increases in lithium prices for the foreseeable future — which could mean an even bigger jump in lithium mining companies.

Lithium carbonate hovered around $2,000 per tonne from 2000 to 2004, but then started rising with demand. By 2009 it was at $5,000 per tonne — and is expected to hit $6,000 per tonne this year.

That's where companies that mine lithium (or lithium mining companies) come in...

There's only a handful of lithium mining companies that are publicly traded.

So let's start off in Chile, "the Saudi Arabia of lithium.” In fact, a single Chilean lake bed holds 27% of the world's reserve base of lithium.

Sociedad Quimica y Minera (SQM):

Chile is home to Sociedad Quimica y Minera, (Chemical & Mining Co. of Chile Inc.), the largest lithium mining company in the world.

If you are looking to avoid the volatility of the smaller cap miners, SQM is a safe bet.

Sociedad Quimica y Minera produces lithium carbonate for use in “batteries, frits for the ceramic and enamel industries, heat-resistant glass, primary aluminum, lithium bromine for use in air conditioner equipment, and continuous casting powder for steel extrusion, pharmaceuticals, and lithium derivatives.” 

Western Lithium (TSX: WLC; OTC: WLCDF.PK) and Lithium Americas (TSX:LAC)

If you wanted to make a bigger gamble and try for some higher returns, you could turn your eye to Western Lithium, operating out of Nevada.

In June of 2015, the two companies announced a strategic merger to combine expertise, technology, and lithium deposits based in both North and South America. Western Lithium will acquire Lithium Americas in a deal valued at $80 million.

In a recent statement, WLC's CEO, tells shareholders, "“The merged company will hold two of the leading lithium development projects in the world. We believe this combination will also result in better liquidity, market capitalization and funding opportunities.” 

In May 2014, the company filed a preliminary feasibility study on Stage 1 of their King's Valley Lithium Project in early 2012. The study evaluated two different scenarios: Case 1 based on mining and processing ore at a rate of 2,100 tonnes per day (13,000 tonnes per annum lithium carbonate) and Case 2, which doubles production (26,000 tonnes per annum lithium carbonate) four years after the start up.

The project has a well-developed local infrastructure in a U.S. state with a long history in the metals and industrial mineral mining industry.

The company recently submitted the Kings Valley Clay Mine Plan of Operations and Reclamation Permit Application to the Bureau of Land Management and the Nevada Division of Environmental Protection. Agency approvals are expected in the first quarter of 2014.

If you'd rather go the ETF route, Global X Lithium ETF (LIT) is your best bet...

Though the ETF has been down over the past few years, it may be battered down enough for a buy:

GXL etf

Here are a few of the lithium mining companies included in the Global X Lithium ETF:

      • Sociedad Quimica y Minera (SQM), mentioned above.
      • FMC Corp (FMC), which underwent an 30% expansion in their lithium division in 2012.
      • Talison Lithium Ltd. (TSX: TLH), a leading producer of lithium with projects in Australia and Chile.
      • Rockwood Holdings (ROC) a producer of specialty chemicals whose Chemetall holding just completed a butyl-lithium production facility in Gujarat, India. ROC is are working towards supplying lithium to India and other markets in the region.

Wealth Daily will be keeping an eye on the lithium mining market and lithium mining stocks as this supply-demand story plays out — and we'll be bringing you even more ways to play it.


Related Articles

Elon Musk's Dirty Secret

Electric vehicles (EVs) are becoming more and more popular. But there's a dark secret behind them. Jason Williams investigates the consequences of buying an EV and explains why you should hold off for a while.

Lithium's Other Half... The One You Don't Hear About

If you've heard of lithium-ion batteries, you've also heard a thing or two about the metal that gives these batteries their name. But there's another metal in this equation that you almost never hear about.

What the Skyscraper Index Says About the Future

Of all the peculiar, exotic financial indicators there are, one of my personal favorites is the Skyscraper Index. This deceptively simple theory postulates the location of the next major economic break down, find out how.

Investing in Lithium-ion Batteries

Lithium-ion batteries power nearly every portable technology. Here are your best bets in the space today.

Taxpayers Funded Frankenfish

With friends in Washington, this company gets special treatment from the government.
Buffett's Envy: 50% Annual Returns, Guaranteed