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 in the UAE?

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 investing in lithium. This provides stock traders with international diversification.

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

Advantages of lithium stocks

Here are a few pros to stock trading lithium shares:

• Future demand: due to the anticipated demand for EVs in the future, lithium stocks can make for good 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 stock 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 Chile to China

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 regulatory challenges will 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 the UAE 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 SQM's cost expertise
• Approach to challenges: global lithium is facing a price downturn,¹ and each company is responding differently. Some are cutting costs, whereas others are pursuing strategic mergers
• Outlook: despite current 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 – Chile, the US, Australia and China

1. Albemarle Corporation (NYSE: ALB)

Market cap: USD 7.08 billion²

Founded in 1887, Albemarle Corporation has evolved from a small chemical company into the world's largest lithium producer.

The company has built a global footprint with operations spanning Chile's Atacama Desert, Australia's Greenbushes mine and processing facilities across multiple continents. Albemarle's transformation into a lithium powerhouse accelerated during the 2010s as EV demand surged, placing it at the forefront of the clean energy transition.

The company is undergoing strategic restructuring to ride out the lithium price downturn affecting the sector. Recent financial results show the impact of lower lithium prices, with significant revenue declines in 2024. But management has responded proactively by cutting capital expenditures by over 50% for 2025 and targeting breakeven free cash flow.³

This approach to cost management positions the company well for the next lithium price cycle.

Highlights:

• Over 1,650 active patents,⁴ helping to secure its leadership in the lithium market
• Committed to sustainability, having received numerous awards for its efforts in 2024⁵
• Operates in approximately 70 countries⁴

2. SQM (NYSE: SQM)

Market cap: USD 10 billion⁶

Sociedad Química y Minera de Chile (SQM) represents nearly a century of mining expertise in Chile's mineral-rich landscape. The company has grown from a local Chilean chemical company into the world's second-largest lithium producer, with exclusive access to some of the planet's highest-grade lithium resources in the Atacama Desert.

The company's strategic location in Chile's lithium triangle provides cost advantages, with brine-based extraction methods that are significantly more economical than hard rock mining alternatives.

The company's latest financial results reflect the industry-wide pricing pressure, with Q4 2024 profits declining 41% year-over-year. However, management expects lithium demand to grow 20% in 2025, reaching 1.1 million metric tons, with projections of 3 million metric tons by 2030.⁷

Highlights:

• Q1 2025 net income was $138 billion, up from the previous quarter⁸
• World’s second-largest lithium producer
• Diversified revenue streams beyond lithium, including speciality chemicals and fertilisers

3. Ganfeng Lithium (SZSE: 002460)

Market cap: USD 67.38 billion⁹

Starting as a small lithium processing company in Jiangxi Province, Ganfeng Lithium has expanded through acquisitions and partnerships to become China’s largest lithium producer.¹⁰ The company's growth story mirrors China's rise as the global centre of lithium battery manufacturing, with Ganfeng playing a crucial role in supplying Chinese EV manufacturers and battery producers.

The company's integrated business model spans upstream lithium extraction (through mines in China, Australia and Argentina), midstream lithium processing and downstream battery material production.

Highlights:

• Relationships with major Chinese EV manufacturers and battery producers, ensuring stable demand
• Global asset portfolio including operations in China, Australia, and Argentina, reducing geographic risk
• Strong position in lithium recycling and sustainable production practices for long-term competitiveness

4. Mineral Resources (ASX: MIN)

Market cap: AUD 4.06 billion¹¹

Mineral Resources Limited began as a mining services contractor in Western Australia, before evolving into a diversified mining company with significant lithium operations. The company's transformation occurred through its Mount Marion joint venture with Ganfeng Lithium, another lithium stock on our list.

The company's diversified revenue base, including iron ore and mining services, provides stability during lithium market volatility.

Mineral Resources’ operational flexibility enables it to adjust its production levels based on market conditions, protecting margins during downturns while positioning itself for rapid expansion during recoveries.

Highlights:

• Significant lithium exposure through its Mount Marion operations
• Strategic partnership with Ganfeng Lithium, which benefits from Chinese market access and technical expertise
• Strong position in Western Australia's established lithium mining region with infrastructure advantages

5. Arcadium Lithium (NYSE: ALTM)

Market cap: USD 6.7 billion (based on recent Rio Tinto acquisition)¹²

Through the merger of Allkem and Livent Corporation, Arcadium Lithium was established in 2024. Technically the newest company on our list, it’s a formidable integrated lithium producer, with operations spanning Argentina, Australia, Canada and the US.

The merger brought together Allkem's upstream mining expertise with Livent's downstream processing capabilities, particularly in high-purity lithium hydroxide production.

In March 2025, Rio Tinto, one of the world’s largest mining companies, completed its acquisition of Arcadium Lithium, giving more credibility to the investment potential of Arcadium Lithium.¹²

Highlights:

• $6.7 billion acquisition by Rio Tinto in March 2025¹²
• Diversified production portfolio combining brine operations in Argentina with hard rock mining in Australia
• The share price has risen 25.54% over the past year¹³

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 available for direct ownership
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. Trading Economics, June 2025
2. Financial Times, June 2025
3. Albemarle Corporation Q1 2025 earnings report, April 2025
4. Albemarle Corporation, June 2025
5. Albemarle Corporation 2025 investor presentation, June 2025
6. SQM, June 2025
7. SQM Q1 2025 results report, March 2025
8. SQM, June 2025
9. Bloomberg, June 2025
10. Ganfeng Lithium, June 2025
11. Trading Economics, June 2025
12. Rio Tinto, March 2025
13. Trading Economics, June 2025