The lithium market faced continued pressure in Q1 2025 as oversupply and weaker-than-expected demand pushed prices to a four-year low, with the lithium carbonate CIF North Asia price dipping below US$9,550 per metric ton.
The broad market decline led many analysts to speculate that the market had bottomed and a rebound was imminent. This was further supported by production cuts in China and Australia aimed at stabilizing supply.
Despite near-term challenges, long-term prospects remain strong, highlighted by Rio Tinto’s (ASX:RIO,NYSE:RIO,LSE:RIO) AU$6.7 billion acquisition of Arcadium Lithium, the company formed by the merger of Allkem and Livent.
The major is also reportedly in talks to develop the Roche Dure lithium deposit in the Democratic Republic of Congo.
Long term electric vehicle (EV) market growth and a projected draw down in excess supply has prompted Benchmark Intelligence researchers to forecast a 12 percent compound annual growth rate for the lithium market over the next 10 years.
All lithium stocks listed had market caps above $20 million in their respective currencies when data was gathered. Data for Canadian stocks was collected on March 25, 2025, data for Australian stocks was gathered on March 27, 2025, and data for US stocks was gathered on March 31, 2025.
Top Canadian lithium stocks
1. Power Metals (TSXV:PWM)
Year-to-date gain: 163.04 percent
Market cap: C$196.57 million
Share price: C$1.21
Exploration company Power Metals holds a portfolio of diversified assets in Ontario and Québec, Canada. The company’s flagship Case Lake project in Ontario hosts spodumene-bearing lithium-cesium-tantalum pegmatites.
In November 2024, Power Metals identified a new pegmatite zone at Case Lake through soil sampling. The samples from the zone, located north-northwest of its West Joe prospect, revealed anomalous levels of cesium, tantalum, lithium and rubidium, which the company said ‘affirmed prospective drill targets’ for its winter exploration program.
On February 10, Power Metals announced the beginning of work associated with the maiden mineral resource estimate and preliminary economic assessment for Case Lake, which it expected to release in Q1 and Q2 of 2025 respectively.
Days later, on February 14, the company followed that announcement by releasing the final assays from its Phase 3 drilling at Case Lake, including “exceptional cesium oxide and tantalum intercepts” from the West Joe prospect. Power Metals stated it planned to begin its 2025 Phase 1 drilling sometime after early March.
The company’s share price rose in the weeks following the pair of announcements to reach a Q1 high of C$1.46 on February 25.
2. NOA Lithium Brines (TSXV:NOAL)
Year-to-date gain: 41.18 percent
Market cap: C$46.99 million
Share price: C$0.36
NOA is a lithium exploration and development company with three projects in Argentina’s Lithium Triangle region. The company’s flagship Rio Grande project and prospective Arizaro and Salinas Grandes land packages total more than 140,000 hectares.
In late January, NOA reported its completion of 28 vertical electrical sounding geophysics tests at the Rio Grande project as part of its 2025 exploration program.
The recent testing expands on past studies and will aid NOA’s water exploration program, refining one of three identified potential water sources.
In a subsequent corporate update on February 7, NOA outlined its plans for Q1 2025, which largely focused on the advancement of the Rio Grande project through geophysical evaluation and water exploration drilling. The company also plans to review engineering proposals for preliminary economic assessment work.
The company’s share price began climbing in early February and reached a Q1 high of C$0.37 on March 13.
The high came days after a Simply Wall Street report highlighted insider buying at the company, a signal of strong internal confidence.
According to the report, NOA insiders invested C$862,600 over the prior six months, with C$358,000 of that coming in a single transaction by CEO and Director Gabriel Rubacha. Additionally, they had not sold any shares in the prior 12 months.
3. Frontier Lithium (TSXV:FL)
Press ReleasesCompany Profile
Year-to-date gain: 35.56 percent
Market cap: C$141.38 million
Share price: C$0.61
Pre-production mining company Frontier Lithium aims to be a strategic and integrated supplier of premium spodumene concentrates as well as battery-grade lithium salts in North America.
The Company’s flagship PAK lithium project, which is a joint venture with Mitsubishi (TSE:8058), holds the “largest land position and resource” in a premium lithium mineral district located in the Great Lakes region of Ontario, Canada. Frontier also owns the Spark deposit, located northwest of the PAK project.
Shares of Frontier Lithium reached a Q1 high of C$0.79 on March 4. After already trending upwards through February, its share price peaked alongside news that the Government of Canada and the Ontario Government supported the company’s plans to build a critical minerals refinery in Northern Ontario.
Once complete the proposed lithium conversion facility will process lithium from PAK into around 20,000 metric tons (MT) of lithium salts per year. “This expected capacity would support the production of batteries for approximately 500,000 electric vehicles per year,” Frontier’s statement reads.
Top Australian lithium stocks
1. Tyranna Resources (ASX:TYX)
Year-to-date gain: 40 percent
Market cap: AU$23.02 million
Share price: AU$0.007
Africa-focused explorer Tyranna Resources is currently focused on its flagship Muvero lithium project in Angola.
In a January 30 update, Tyranna reported it completed a drill program totalling 11 diamond drill holes spanning 817 meters. Initial results from drilling at the Muvero and Loop prospects confirmed visible spodumene-bearing pegmatite. Additionally, core from the Muvero prospect will be used for metallurgical testing and structural data.
The company is also pursuing and evaluating additional projects that align with its strategy of focusing on in-demand metals, and had applied for one licence at that time.
Shares of Tyranna reached a quarterly high of AU$0.007 several times over the three month period.
2. Liontown Resources (LTR:AU)
Year-to-date gain: 24.53 percent
Market cap: AU$1.58 billion
Share price: AU$0.66
Liontown Resources has two assets in Western Australia, including the producing Kathleen Valley mine, which entered production during the second half of 2024 and transitioned to commercial production in January 2025.
The company’s Buldania project in the Eastern Goldfields Province of Western Australia has an initial mineral resource of 15 million MT at 1.0 percent lithium oxide.
In its fiscal H1 2025 financial update, Liontown reported that over 100,000 wet metric tons of spodumene concentrate had been shipped from Kathleen Valley between July and the end of December.
Liontown’s shares rose to a Q1 high of AU$0.735 on March 19, 2025, shortly after the release of the half year results.
3. Delta Lithium (ASX:DLI)
Year-to-date gain: 9.09 percent
Market cap: AU$125.39 million
Share price: AU$0.18
Delta Lithium is a diversified exploration and development company focused on discovering high quality, lithium bearing pegmatite deposits in Western Australia.
Currently, Delta is developing the Mount Ida gold and lithium project, which reportedly has a JORC-compliant resource of 14.6 million MT grading 1.2 percent. Additionally, the company is exploring its Yinnetharra lithium project, including the Malinda deposit, in the Upper Gascoyne Region.
Company shares registered a Q1 high of AU$0.20 on January 14.
On January 21, Delta released an exploration update for Yinnetharra that highlighted drilling and metallurgical results from the M1 pegmatite at the Malinda deposit.
“The program has realised highly positive metallurgical results, with pilot plant spodumene recoveries exceeding our Internal financial modelling and proving the whole-of-ore flotation flowsheet as suitable for the M1 mineralogy,” Managing Director James Croser said.
In a subsequent financial statement, Delta noted the submission of the mining lease application for the Malinda mining area and the commencement of Native Title negotiations. The company is also advancing its environmental permitting process at Malinda.
1. SQM (NYSE:SQM)
Year-to-date gain: 9.29 percent
Market cap: AU$11.36 billion
Share price: US$40.23
SQM is one of the world’s largest lithium producers with projects in South America and China, outputting both lithium carbonate and hydroxide.
In 2024, SQM produced approximately 210,000 MT of lithium, with about 180,000 MT sourced from its chemical plant in northern Chile and an additional 30,000 MT processed in China.
The lithium major also saw lithium sales increase 21 percent year-over-year to nearly 205,000 MT of lithium carbonate equivalent (LCE).
“However, the increase in volume was not enough to offset the continuous decline in prices, a trend we have been observing since early 2023,” the 2024 earnings report noted. “As a result, our average realized price dropped by more than 64 percent, from US$30,467 per ton in 2023 to US$10,936 per ton in 2024.”
Shares of SQM reached a Q1 high of US$45.61 on March 17, 2025.
In late February, SQM’s US$7 million investment in Andrada Mining’s (LSE:ATM,OTCQB:ATMTF)Lithium Ridge project received final approval from the Namibian government. The deal will see SQM obtain a 30 percent stake in the project with an option to increase to 50 percent.
FAQs for investing in lithium
How much lithium is on Earth?
While we don’t know how much total lithium is on Earth, the US Geological Survey estimates that global reserves of lithium stand at 22 billion metric tons. Of that, 9.2 billion MT are located in Chile, and 5.7 billion MT are in Australia.
Where is lithium mined?
Lithium is mined throughout the world, but the two countries that produce the most are Australia and Chile. Australia’s lithium comes from primarily hard-rock deposits, while Chile’s comes from lithium brines. Chile is part of the Lithium Triangle alongside Argentina and Bolivia, although those two countries have a lower annual output.
Rounding out the top five lithium-producing countries behind Australia and Chile are China, Argentina and Brazil.
What is lithium used for?
Lithium has many uses, including the lithium-ion batteries that power electric vehicles, smartphones and other tech, as well as pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass. Still, it is largely the electric vehicle industry that is boosting demand.
How to invest in lithium?
Those looking to get into the lithium market have many options when it comes to how to invest in lithium.
Lithium stocks like those mentioned above could be a good option for investors interested in the space. If you’re looking to diversify instead of focusing on one stock, there is the Global X Lithium & Battery Tech ETF (NYSE:LIT), an exchange-traded fund (ETF) focused on the metal. Experienced investors can also look at lithium futures.
Unlike many commodities, investors cannot physically hold lithium due to its dangerous properties.
How to buy lithium stocks?
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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