Top lithium stocks to watch in 2025

What are lithium stocks?

Lithium stocks are the shares of companies that have operations in the mining and refining of lithium, and the production of lithium-based products. Lithium is a metal (the lightest of all metals) used in batteries – notably in electric vehicles (EVs).

Lithium is highly reactive, meaning it can easily form compounds with other elements. It’s never found naturally in its purest form; rather, it’s frequently discovered in spodumene, petalite and eucryptite, as well as in brines and ocean water.

Why invest in lithium stocks?

Due to the lack of lithium stocks on the Dubai Financial Market (DBM) and Abu Dhabi Securities Exchange (ADX) (which primarily focus on banking, energy, real estate and telecommunications), it’s worth considering international lithium shares. This provides stock traders with global diversification.

As you’ll see on our list, we’ve included lithium stocks from the US, Australia, Canada and China, providing a decent mix of global companies for UAE traders.

Advantages of lithium stocks

Here are a few pros to trading lithium shares:

• Future demand: Due to the anticipated demand for EVs in the future, lithium stocks can make for good short-term trading and long-term investments, as the metal will likely be used broadly in the coming years. Similarly, solar and wind energy (which are often paired with lithium-ion batteries) demand is growing
• Clean energy exposure: By trading lithium shares, you’re investing in clean energy for the present and future
• Long-term contracts: Some of the lithium stocks on our list have long-term agreements and joint ventures to ensure future cash flows
• Diversification: Because there are lithium miners and producers all over the globe, you can diversify your portfolio by stock trading any number of them, from Canada to China

Diversification is paramount for a well-balanced portfolio, particularly for stock traders. Investing in one region or asset class can lead to higher risk. Consider this: If geopolitical tensions arise in the region where the bulk of your investments sit, your entire portfolio could be at risk of losing substantial value. 

Risks of lithium stocks

Now for the downsides:

• Market volatility: Despite the demand for EVs and batteries, the lithium market is volatile – it’s been in a bearish descent in 2025. This makes it harder to realise profits and easier to lose your capital
• Regulatory changes: As the production and demand of lithium grow, so will regulatory challenges surface
• Geopolitical tensions: Prices can change drastically depending on geopolitical instability – Australian stocks, for example, might be more stable than Chinese stocks

Top 5 lithium stocks to watch in 2025

We selected these five lithium stocks to watch for a few reasons:

• Market positioning: These companies represent different strategic approaches to the lithium market – from Albemarle’s global dominance to Standard Lithium’s development pipeline
• Outlook: Despite 2025 headwinds, each company looks solid for the future, with an anticipated increase in demand for EVs and energy storage
• Geographic diversification: Our selection provides exposure to different regions –the US, Australia, Canada and China

About the stocks in this article

These stocks are all available to trade via CFDs with IG UAE, whereas all except European Lithium and Tianqi Lithium are available to stock trade through us.

All figures are accurate as of 26 December 2025.

1. Albermarle Corporation (NYSE: ALB)

Market cap: US$17.48 billion¹

YTD growth: 71.81%²

Suitable for: Stock traders, but can also attract CFD traders

Albemarle Corporation is one of the world’s largest and best-known lithium producers. Lithium is a key ingredient in rechargeable batteries, especially those used in EVs, smartphones and energy storage systems.

Albemarle operates across several continents, with lithium production and processing facilities in the US, Chile and Australia. This global footprint gives the company access to some of the most important lithium resources in the world.

What sets Albemarle apart is its scale and experience. Unlike smaller lithium companies that are still developing projects, Albemarle is already producing lithium at commercial levels and supplying major battery manufacturers.

It also has long-term contracts with customers, which can help smooth income during periods when lithium prices are unstable.

In addition to lithium, the company has other specialty chemical businesses, which adds another layer of diversification.

Highlights:

• Albemarle’s share price is still heavily influenced by changes in lithium prices. When lithium demand is strong or supply is tight, the stock can rise sharply. When prices fall, the share price can come under pressure
• This means the stock has shown noticeable price swings over the year, despite being a large and established company
• It reflects broader trends in EVs, clean energy and global battery demand, while still offering enough price movement to attract short-term trading interest when market conditions change

2. Standard Lithium Limited (TSXV: SLI)

Market cap: C$1.58 billion³

YTD growth: 213.21%⁴

Suitable for: CFD traders

Standard Lithium is a lithium development company focused on projects in the United States. Unlike traditional lithium miners that extract lithium from hard rock or large salt flats, Standard Lithium is developing a newer method called direct lithium extraction (DLE). This technology aims to pull lithium directly from underground brine more quickly and with less environmental impact.

The company’s main projects are in Arkansas and Texas, areas that already have long-established brine operations. This gives Standard Lithium access to existing infrastructure, which could help reduce development costs if its projects move into full production.

The company has also attracted attention due to partnerships and government support linked to the push for domestic lithium supply in the US.

Highlights:

• Standard Lithium is not yet a major producer, which means its future depends heavily on project development, funding decisions and technical progress. As a result, its share price has tended to move sharply when there are updates on feasibility studies, pilot results or regulatory approvals
• Its valuation can change quickly based on expectations rather than current earnings. This can create strong upward or downward price movements over short periods
• Standard Lithium represents a more forward-looking approach to lithium supply, combining innovation with exposure to the growing US battery market

3. European Lithium Limited (ASX: EUR)

Market cap: A$283.28 million⁵

YTD growth: 292.86%⁶

Suitable for: CFD traders

Despite the name, European Lithium is headquartered in Australia.

It’s a smaller lithium company focused on developing lithium resources in Europe. Its main asset is the Wolfsberg Lithium Project in Austria, which is one of the more advanced hard-rock lithium projects on the continent.

The company’s goal is to support Europe’s growing EV and battery manufacturing industries by producing lithium locally.

Europe currently relies heavily on imported battery materials, so projects like Wolfsberg are often viewed as strategically important.

European Lithium has also taken steps to unlock value from its assets through partnerships and corporate restructuring, including involvement in a US-listed company focused on critical metals.

As an early-stage company, European Lithium does not yet generate large revenues from lithium production. Instead, its share price tends to react to announcements such as feasibility studies, funding developments, and progress toward construction and production. This can result in sharp price moves, both up and down.

Highlights:

• Smaller companies like European Lithium are often more sensitive to changes in market sentiment. News about EV demand, European industrial policy or lithium prices can have an outsized impact on the share price
• The company offers exposure to Europe’s push for battery independence, but its performance is closely tied to development milestones and broader confidence in future lithium demand

4. Vulcan Energy Resources Limited (ASX: VUL)

Market cap: A$1.97 billion⁷

YTD growth: -1.14%⁸

Suitable for: Stock traders and CFD traders

Vulcan Energy Resources is an Australia-listed company developing a unique lithium project in Germany. Its approach combines geothermal energy production with lithium extraction from underground brine. The aim is to produce lithium with a very low carbon footprint, using renewable energy generated on site.

This environmentally focused strategy has helped Vulcan stand out in the lithium sector. Many carmakers and battery manufacturers are under pressure to reduce emissions across their supply chains, and Vulcan’s ‘zero-carbon lithium’ concept fits well with these goals.

The company is developing its Lionheart Project in Germany’s Upper Rhine Valley, a region with strong infrastructure and industrial demand.

Highlights:

• Vulcan has secured funding support and offtake agreements, which shows growing confidence in the commercial potential of its project. However, it’s still in the development stage, meaning construction, financing and execution risks remain. These factors can strongly influence the share price
• Because progress is measured through project milestones, Vulcan’s stock has often reacted sharply to news related to financing, permitting and technical updates
• The company sits at the intersection of lithium production, renewable energy and ESG investing, making it one of the more distinctive names in the global lithium space

5. Tianqi Lithium Corporation (SZSE: 002466)

Market cap: CN¥90.93 billion⁹

YTD growth: 75.49%¹⁰

Suitable for: Stock traders

Tianqi Lithium is one of the largest lithium producers in China and a major player in the global lithium market. The company is involved in both lithium mining and processing, with interests in some of the world’s most important lithium assets. Notably, Tianqi has a significant stake in the Greenbushes mine in Australia, one of the largest and highest-quality lithium deposits globally.

In addition to mining, Tianqi produces lithium chemicals such as lithium hydroxide, which are widely used in EV batteries. This combination of mining and processing allows the company to participate across multiple stages of the battery supply chain.

Tianqi’s size and established operations mean it is often seen as a key supplier to the global EV industry, particularly in Asia. However, its share price can still move significantly due to changes in lithium prices, demand forecasts and developments within China’s industrial and regulatory environment.

Highlights:

• Like many commodity-linked stocks, Tianqi tends to rise when lithium markets tighten and fall when supply increases or demand slows. Currency movements, government policy and global trade conditions can also influence performance
• The company provides exposure to large-scale lithium production and the continued expansion of EVs, while still reflecting the cyclical nature of commodity markets

How to trade lithium stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for lithium stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it 

Stock trading

1. Open a stock trading account with IG UAE
2. Search for lithium stocks
3. Choose the stock you want to buy
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about lithium stocks

Footnotes
 

1. TradingView, December 2025
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10. TradingView, December 2025