As the market moves into the second half of year, the lithium sector has continued to experience challenges.
However, after 2023’s broad fluctuations, the lithium sector exhibited greater stability in the first half of 2024.
While oversupply and weak prices kept some companies from registering large gains during the period, others saw share price growth. Read on to discover which lithium-focused companies on Canadian and Australian exchanges have performed the best in 2024.
Year-to-date gain: 140 percent; market cap: C$76.02 million; current share price: C$0.60
Exploration firm Q2 Metals is exploring its flagship Mia lithium property in the Eeyou Istchee James Bay region of Québec, Canada. The property contains the Mia trend, which spans over 10 kilometers. Also included in Q2 Metals’ portfolio is the Stellar lithium property, comprising 77 claims and located 6 kilometers north of the Mia property.
In mid-May, Q2 Metals released re-assayed results from 2023 drilling conducted at Cisco by the property’s vendors. The company used the analytical method it has applied to its Mia drill cores.
Year-to-date gain: 104.3 percent; market cap: C$66.96 million; current share price: C$0.47
Volt is a lithium development and technology company aiming to become a premier North American lithium producer utilizing its proprietary direct lithium extraction (DLE) technology to extract lithium from oilfield brine. It has a Canadian field simulation center in Calgary, Alberta, and is deploying its technology starting in the Permian Basin in West Texas.
Year-to-date gains: 16.02 percent; market cap: C$21.44 million; share price: C$3.91
Foremost Lithium is an exploration company with several hard rock lithium properties, which it calls the Lithium Lane projects, in the Snow Lake district of Manitoba, Canada, as well as the Lac Simard South project in Québec, Canada.
In May, the company completed its winter drill program at the Zoro lithium project in Manitoba. The drilling encompassed 21 diamond drill holes over 5,826 meters and targeted previously untested mineralization southeast of Dyke 1, where the company has an inferred resource of 1.07 million metric tons with a 0.91 percent lithium oxide grade.
Year-to-date gain: 31.72 percent; market cap: AU$718.8 million; current share price: AU$3.82
Europe-focused Vulcan Energy Resources aims to support a carbon-neutral future by producing lithium and renewable energy from geothermal brine. The company is currently developing the Zero Carbon lithium project in Germany’s Upper Rhine Valley. Vulcan is utilizing a proprietary alumina-based adsorbent-type direct lithium extraction process to produce lithium with an end goal of supplying sustainable lithium for the European electric vehicle market.
Vulcan will now prepare the 40 million euro facility for commercial production. The company already has binding lithium offtake agreements in place with major automakers and battery manufacturers, and expects to supply enough lithium for 500,000 electric vehicles during the first phase of production.
Year-to-date gain: 23.6 percent; market cap: AU$57.06 million; share price: AU$0.11
Africa-focused explorer Prospect Resources holds a diversified portfolio of assets located in Zimbabwe, Zambia and Namibia. The company’s lithium projects, Omaruru and Step Aside, are in Namibia and Zimbabwe, respectively.
In a release, Managing Director Sam Hosack highlights the significant mineralization potential at both projects.
Meanwhile, the Omaruru lithium project in Namibia has completed Phase 2 drilling, and spending has been reduced to holding costs as focus shifts to the Mumbezhi project. At the Bikita Gem lithium project in Zimbabwe, Prospect has begun fieldwork and trenching after entering a joint venture earn-in agreement in May, with a limited drilling program planned to “to test the subsurface below a number of historical lithium-bearing (petalite) targets identified at the Project.”
Rounding out the top five lithium-producing countries behind Australia and Chile are China, Argentina and Brazil.
Those looking to get into the lithium market have many options when it comes to how to invest in lithium.
Unlike many commodities, investors cannot physically hold lithium due to its dangerous properties.
Through the use of a broker or an investing service such as an app, investors can purchase lithium stocks and ETFs that match their investing outlook.
Before buying a lithium stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it’s critical to complete due diligence before making any investment decisions.
It’s also important for investors to keep their goals in mind when choosing their investing method. There are many factors to consider when choosing a broker, as well as when looking at investing apps — a few of these include the broker or app’s reputation, their fee structure and investment style.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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