Risk Warning: Your Capital is at Risk.
This guide covers how you can trade lithium and where to find regulated brokers that offer ways to access lithium and other energy-based stocks, ETFs and derivative trading options.
We also examine reasons why some traders might consider trading lithium, given its pivotal role in global industries.
Looking to get started asap? Check out these options for trading lithium-based financial products:
Disclaimer: Availability subject to regulations.
Between 74-89% of retail investor accounts lose money when trading CFDs.
How to Trade Lithium
There is no way to invest directly in the lithium commodity because there are no exchange-traded futures like there are with other industrial metals such as copper, nickel, and aluminum.
Lithium Derivatives Like CFDs and Options
Some brokers allow traders to speculate on the price of lithium without actually owning the underlying lithium assets. These derivative trading instruments include:
- Options contracts on lithium indices and companies
- CFDs on lithium indices
- Futures contracts on lithium indices
IMPORTANT: CFDs are not available in the USA due to local regulation, and regulated brokers do not accept US citizens or US residents as clients.
Shares in Lithium Stocks
Another way to trade on lithium is by purchasing shares on the BITA American Lithium and Battery Metals Giants Index or BALITG.
The BALITG captures the Gross Total Return Performance of the largest American publicly-listed companies that have direct revenue exposure in extraction and commercialization of metals used for battery production.
Alternatively, the companies listed below are publicly-traded companies involved in lithium mining or processing.
Please note, this is an example – not a recommendation.
|Sociedad Quimica y Minera de Chile||The World’s largest lithium producer and a leader in producing lithium compounds.||New York (NYSE)||1968|
|Albemarle Corporation||Specialty chemicals company and an industry leader in lithium and lithium derivatives products.||New York (NYSE)||1984|
|FMC Corp.||Diversified chemical company that extracts and processes lithium.||New York (NYSE)||1883|
|Liberty One Lithium Corp.||Canadian-based exploration company developing lithium brine deposits in the West Argentina.||Calgary (TSXV)||1996|
|Lithium X Energy Corp.||Operates two wholly owned brine projects in Argentina.||Calgary (TSXV)||1997|
|Altura Mining Limited||Australian-based lithium raw materials producer with a hard rock extraction project in Western Australia.||Sydney (ASX)||2000|
|Nemaska Lithium Inc.||Supplier of lithium hydroxide and lithium carbonate supplier to the battery market.||Toronto (TSE)||2007|
|Critical Elements Corporation||Early-stage lithium exploration and mining company based in Canada.||Calgary (TSXV)||2006|
|Neo Lithium Corp.||Operates a brine operation in the southern end of the Lithium Triangle.||Calgary (TSXV)||2016|
|Dajin Resources Corp||Canadian-based mining company engaged in the acquisition, exploration and development of lithium deposits.||Calgary (TSXV)||1987|
|International Lithium Corp.||Manages four joint-venture lithium projects in Canada, China, Ireland and Argentina||Calgary (TSXV)||2009|
|Pilbara Minerals Limited||Australian-based minerals mining company that operates lithium mining projects in Western Australia.||Sydney (ASX)||2005|
|Galaxy Resources||Australian company that operates lithium production facilities, hard rock mines and brine mines in Australia, Argentina and Canada.||Sydney (ASX)||1996|
|Lithium Americas||50% owner of the largest lithium brine deposit in the world.||Toronto (TSE)||2007|
|Orocobre Limited||Australian industrial chemicals company and lithium miner.||Sydney (ASX)||2007|
Where Can I Trade Lithium?
Start your research with reviews of these regulated brokers available in .
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74%-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Reasons to Trade Lithium
Alongside global demand for a commodity, other factors like technological advancement impact a commodity’s future price projections.
Important: This is not investment advice. We present a number of common arguments for and against investing in this commodity. Please seek professional advice before making investment decisions.
Constant Demand for Energy Storage
Most people need energy on the go and this is only possible with a battery. Lithium-ion batteries are what allow the majority of your mobile phones, laptops, and even electric cars to function as ‘nomad’ technologies.
For example, Tesla’s gigafactory was projected to require over 25,000 tonnes of lithium to reach its target energy output of 35Gwh per year.
Slow Battery Innovation
The need for large storages of energy, largely portable, has plagued a handful of tech giants from Tesla to Apple. Lithium-ion batteries are still the most popular and most efficient batteries in commercial use today, and it doesn’t look like that will change any time soon.
Lithium-ion batteries are getting larger and larger, and so more lithium is needed. Though traders are advised to consider other battery technologies and their impact on lithium prices, like non-flammable zinc-oxygen batteries and hydrogen batteries with lithium-ion’s tenfold energy-weight ratio.
An environment-friendly approach isn’t necessarily an indicator that lithium rises are bearish, but alternative technologies like batteries fuelled by zinc and hydrogen are closer friends with mother earth.
For example, hydrogen-cell batteries are carbon-neutral as they only produce heat and water.
If you’d like to learn more about precious metals and energy, you can:
- See our Precious Metals Guides to learn more about metal commodities like Uranium
- Find out all about energy commodities in our Energy Commodity Guides
- Learn about various Elements of the Periodic Table