What are the best lithium stocks for beginners?

Albemarle Corp. (ALB), Sociedad Química y Minera de Chile S.A. (SQM) and Piedmont Lithium Inc. (PLL) are the best lithium stocks for beginners.

Should I invest in lithium stocks in 2025?

Yes, lithium is a good investment because of an increased demand for EV batteries and renewable energy storage. Also, the global policy structure supports lithium because of green infrastructure demand and EV adoption.

Which lithium stocks pay dividends?

Albemarle Corp. (ALB) and Sociedad Química y Minera de Chile S.A. (SQM) are stocks that pay dividends .

Are lithium stocks good for long-term growth?

Yes, EV expansion plans and the search for energy storage solutions will continue. Some predict that in the long term, the supply of lithium will actually fall short.

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Best Lithium Stocks to Watch and Invest in Now

May 9, 2025

5 min Read

Written by Rudri Patel

Edited by Joe Evans

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Lithium isn’t just powering your smartphone — it’s fueling the future of electric vehicles, battery storage, and renewable energy.

As global demand for clean tech accelerates, more investors are turning their attention to the best lithium stocks for long-term growth potential.

Whether you’re just getting into investing or looking to diversify, lithium could be a smart place to start.

Let’s explore which lithium companies are worth watching now, why the sector matters and how to invest confidently in this evolving space.

Best Lithium Stocks in 2025

These companies are leading the charge in lithium production, battery technology or infrastructure. Here’s a list of the six best lithium stocks for May 2025:

Stock	Ticker	Market Cap	Dividend Yield	Current Share Price	P/E
Tesla	TSLA	$889.69 Billion	N/A	$276.22	115.32
Albemarle Corp.	ALB	$8.89 Billion	$2.89	$56.06	93.29
Enovix Corporation	ENVX	$1.19 Billion	N/A	$6.18	N/A
Exxon Mobil	XOM	$450.83 Billion	$3.79	$104.61	13.97
Solar Edge Technologies	SEDG	$872.06 Billion	N/A	$14.77	N/A

Note: Lithium stocks can be volatile. Returns listed are based on year-over-year performance as of Q2 2025.

Why Invest in Lithium Stocks?

There are multiple reasons to invest in lithium stocks. Here are a few reasons why it’s a worthy investment:

Demand for EVs: EVs still seem likely to be the vehicles of the future. This, coupled with the general demand for lithium in an increasingly technological world, could make these stocks long-term winners.

Global demand: Overall, global demand for lithium is expected to grow by more than a factor of 10 from 2020 to 2030, providing a good fundamental backdrop for lithium stocks. Remember — understand what you own before you jump into this exciting but volatile area.

Supply shortages: It’s expected that lithium will encounter a supply shortage. This may lead to a potential price increase.

Lithium Stocks vs. Other Investment Options

Here’s how lithium stocks compare with other sector plays:

Investment Type	Risk Level	Growth Potential	Volatility
Lithium Stocks	High	High	High
Lithium ETFs (like LIT)	Medium	Medium-High	Medium
Renewable Energy ETFs	Medium	Medium	Medium
Tech Stocks	Medium-High	High	Medium-High

For new investors, ETFs can offer a smoother entry point with less company-specific risk.

Risks of Investing in Lithium Stocks

All investments come with some risk. There are four risks associated with lithium stocks:

Volatility: Lithium stocks are highly volatile and influenced by supply-demand economics.
Regulatory challenges: New regulations may potentially slow down mining operations and impact profits.
Technological disruption: There could be a lithium replacement. This substitution could reduce the demand for lithium.
Global political risk: Lithium is located in politically unstable places, and this could disrupt supply chains because of tariffs or restrictions.

Trends Shaping the Lithium Sector in 2025

These trends make lithium an exciting — but fast-moving — investment space. The expectation is that the lithium market will grow by 3.5 times by 2030.

This is welcome news since lithium saw a drop in the last year. There is a concern that prices may remain stagnant since there was an oversupply of lithium.

Several trends are driving investor attention toward lithium stocks:

EV Adoption: U.S. EV sales are projected to surpass 3 million in 2025.
Onshoring: The U.S. is incentivizing domestic battery and lithium supply chains.
M&A Activity: Larger mining companies are acquiring smaller lithium firms.
Solid-State Battery Research: Innovations could reshape how lithium is used.

How to Buy Lithium Stocks

Interested in investing in lithium stocks? Here are some guidelines on how to do so:

Step 1: Choose a brokerage firm – Choices may include Fidelity, Charles Schwab or Robinhood to buy lithium stocks. Make sure the brokerage firm has access to local and global lithium markets. Link a bank account that will allow you to buy stocks.
Step 2: Do your research – Review lithium companies that either mine, refine or engage in battery production. Check recent earnings reports and overall company health.
Step 3: Decide between stocks or ETFs – Determine what works for your long-term financial strategy.
Step 4: Find the company ticker – Locate the company ticker on the platform.
Step 5: Decide how much you want to invest – You may want to evaluate your full portfolio before investing.
Step 6: Place your trade – Choose your order type and submit.

Final Take to GO: Should You Invest in Lithium Stocks?

With electrification trends gaining speed, lithium is at the heart of the global energy shift.

Whether you’re bullish on EVs, battery tech or clean energy, investing in the best lithium stocks or ETFs could help you capture that growth.

Ready to get started? Compare brokerage accounts, read up on lithium producers or check out our beginner’s investing guide to take the next step in your portfolio.

FAQs About Lithium Stocks

Here are some questions about the best lithium stocks to add to your portfolio ASAP:

What are the best lithium stocks for beginners?
- Albemarle Corp. (ALB), Sociedad Química y Minera de Chile S.A. (SQM) and Piedmont Lithium Inc. (PLL) are the best lithium stocks for beginners.
Should I invest in lithium stocks in 2025?
- Yes, lithium is a good investment because of an increased demand for EV batteries and renewable energy storage. Also, the global policy structure supports lithium because of green infrastructure demand and EV adoption.
Which lithium stocks pay dividends?
- Albemarle Corp. (ALB) and Sociedad Química y Minera de Chile S.A. (SQM) are stocks that pay dividends.
Are lithium stocks good for long-term growth?
- Yes, EV expansion plans and the search for energy storage solutions will continue. Some predict that in the long term, the supply of lithium will actually fall short.

Information is accurate as of May 9, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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