Top 5 ASX lithium shares to watch in 2025

What are lithium shares?

Lithium shares are the stocks of publicly listed companies that are involved in the mining and refining of lithium, as well as processing lithium-based products, like electric vehicle (EV) batteries.

What is lithium and how is it used?

Lithium is a silvery-white alkali metal with special properties that make it extremely useful in the production of lithium-ion batteries that act as the power source for EVs.

Because lithium is both the least dense metal and the least dense solid element, it is highly unlikely to be replaced in modern EVs by alternatives such as nickel. While nickel has been used in the past, it has a 40% lower energy density, meaning more of the metal is required to create an EV battery.

However, lithium’s chemical disadvantage is its inherent instability. Lithium is highly reactive and must be stored in an inert atmosphere or vacuum, such as oil. This makes it expensive to produce, transport and store.

ASX lithium shares: what you need to know

One concern about lithium is that it’s relatively abundant worldwide. However, supply is restricted for two reasons.

The first is that lithium needs to be concentrated enough to be worth mining, and exploratory projects are often expensive with a high failure rate.

The second is that lithium is difficult and time-consuming to mine, with new mines taking up to ten years to begin extraction. While corporations worldwide are attempting to establish their own mining and processing operations, the demand for lithium is likely to outpace the supply ramp-up.

It’s worth noting that lithium is mined from three types of deposits: brine, pegmatite lithium and sedimentary, with Australia accounting for the majority of the sedimentary lithium worldwide. Many lithium traders prefer to invest across all three types.

Advantages of lithium shares

There are some real benefits to trading lithium shares. Let’s take a look at a few:

• Demand: As the demand for EVs ramps up, with governments around the world looking to ban the sale of fuel-based vehicles, lithium is bound to be highly sought-after – unless vehicle technology takes a major leap in another direction
• Sustainability: By trading lithium shares, you’re investing in a cleaner future
• Diversification: There are numerous ways to get involved in lithium shares, from mining companies to production stocks. And they’re not just on the ASX – they’re all over the world

Risks of lithium shares

As appealing as lithium shares may seem, there are certain downsides to trading them, too:

• Volatility: Aside from the bullish surge in early August and mid-September 2025, the lithium market has been fraught with turmoil this year. It’s a volatile market despite the growing demand for EVs
• Regulations: As the need for more lithium to power EVs grows, regulatory changes are bound to take place
• Supply chain risks: Lithium companies are largely at the mercy of countries like China, which is frequently affected by supply chain risks. One reason for this is the repeated lockdowns associated with contagious diseases spreading

Top 5 ASX lithium shares to watch in 2025

Now is a particularly interesting time to keep an eye on ASX-listed lithium shares. The price of lithium stocks recently surged, thanks, in part, to battery manufacturer Contemporary Amperex Technology (CATL) suspending production at a major Chinese mine, beginning in August 2025.¹ CATL, which is the world’s largest EV battery supplier,² failed to obtain a permit extension and has now been ordered to pay CN¥247 million for mining rights at its Jianxiawo site.

Due to massive Chinese oversupply of lithium over the past two years, the element’s price has seen a steady decline during that time, but with CATL’s production halted, the price has seen a surge in recent months, although still with substantial volatility.³

Overview of the shares in this article

We chose the shares in this list based on the highest market cap of ASX-listed lithium companies. All these stocks can be share traded directly or via CFDs with us.

All figures are accurate as of 17 November 2025.

1. Rio Tinto (ASX: RIO)

Market cap: A$184.61 billion⁴

Rio Tinto is one of the world’s largest diversified mining groups, with major operations in iron ore, aluminium, copper and industrial minerals. Although lithium isn’t its primary commodity, the company has been steadily expanding its presence in the battery-materials sector through strategic projects, partnerships and investments.

Because Rio Tinto operates on a global scale, it brings deep technical expertise, strong logistics capability and substantial capital to any lithium development it pursues. This makes it an important player in the sector despite lithium being only a small part of its broader portfolio.

In the lithium market, Rio Tinto’s involvement typically centres around large, long-life assets that require sophisticated development and infrastructure. Its approach suits share traders who want exposure to the long-term growth narrative of EVs and battery storage without relying solely on smaller, more volatile lithium specialists.

The company’s financial strength and diversified revenue streams mean it can weather commodity downturns better than many pure-play lithium miners. This stability appeals to long-term share traders who value consistent cash flow, dividend potential and a lower-risk pathway into the battery-materials theme.

Highlights:

• Its performance is still dominated by iron ore and other bulk commodities, so any lithium upside will be only one part of a much larger earnings picture
• Its size and diversification also mean its share price may not respond quickly to short-term lithium price movements in the way a smaller producer’s would, providing fewer opportunities for CFD traders
• Its share price has grown 11.18% over the past six months⁵

2. Pilbara Minerals Limited (ASX: PLS)

Market cap: A$12.30 billion⁶

Pilbara Minerals is one of Australia’s leading pure-play lithium producers and a major participant in the global spodumene market. Based in Western Australia, Pilbara operates large‐scale open-pit lithium mines that produce spodumene concentrate – a key raw material used to manufacture lithium chemicals for EV batteries.

The company has expanded rapidly in recent years as global demand for battery materials has surged and is now one of the most important upstream suppliers in the lithium supply chain.

Because the company’s business is centred almost entirely on lithium production, its revenue tends to rise and fall in line with spodumene prices. When battery demand is strong and producers face supply constraints, Pilbara’s margins can expand significantly. Share traders who believe in long-term electrification trends may see Pilbara as a straightforward way to capture the growth of the battery sector.

However, this concentrated exposure is also a core risk. Pure-play lithium producers are highly sensitive to market cycles, and when lithium prices fall, profitability can decline rapidly. As a result, Pilbara’s share price can be volatile, which may be uncomfortable for share traders who prefer more stable or diversified earnings streams. But this makes for opportunistic conditions for CFD traders.

Highlights:

• In its latest quarterly activities report, it indicates that its revenue increased 30% to A$251 million, which is the result of higher realised pricing⁷
• Its full-year FY25 report shows record total annual production of 755kt⁸
• Its share price has soared 188% over the past six months⁹

3. Mineral Resources Limited (ASX: MIN)

Market cap: A$9.95 billion¹⁰

Mineral Resources is a diversified mining and services company with major operations across iron ore, lithium and mining logistics.

Unlike pure-play lithium companies, MinRes combines resource ownership with significant mining services activities, giving it a multi-layered business model that generates revenue in different parts of the mining value chain. This approach gives the company a unique position in Australia’s resources sector and a meaningful presence in lithium production and development.

Its integrated model means it can manage key stages of the mining process in-house, from mining and crushing to transport and processing. This allows MinRes to capture more value from each ton of ore compared to companies that rely entirely on third-party contractors. For long-term share traders, this blend of mining operations and service revenue can make earnings more resilient during commodity downturns.

At the same time, MinRes is still exposed to the cyclical nature of commodity markets. Lithium and iron ore prices both play a major role in performance, and downturns in either market can place pressure on earnings.

Highlights:

• For CFD traders, it offers active trading opportunities due to its strong daily liquidity and sensitivity to commodity sentiment
• Its Q1 FY26 report – its latest quarterly release – indicates that liquidity held strong at A$1.1 billion¹¹
• Its share price has risen by 99.64% over the past six months¹²

4. IGO Limited (ASX: IGO)

Market cap: A$5.10 billion¹³

IGO is a diversified battery-materials company with interests across lithium, nickel and other critical minerals that support the global energy transition.

Over the past decade, the company has shifted its portfolio increasingly toward future-focused commodities. Lithium now plays a major role in its strategy, supported by its stakes in key projects and its involvement in joint ventures aimed at both mining and processing.

Rather than relying solely on a single producing mine, the company pursues a portfolio approach that includes upstream resources and downstream processing initiatives. This gives IGO exposure to different points in the battery-materials value chain and provides a measure of diversification not common in more concentrated lithium players.

For share traders who want exposure to lithium and related metals without committing entirely to a single commodity, IGO offers a balanced alternative.

CFD traders may find IGO appealing because the share price responds to a combination of company-specific news and broader trends in battery metals. Announcements about project milestones, production figures, joint venture updates or commodity price movements can lead to strong short-term price action.

Highlights:

• Its Q1 FY26 results report shows a strong balance sheet, with positive free cash flow of A$15 million¹⁴
• Sales revenue of A$105 million over the same period¹⁵
• Its share price has increased by 63.61% over the past six months¹⁶

5. Liontown Resources Limited (ASX: LTR)

Market cap: A$4.31 billion¹⁷

Liontown Resources is an exploration and development company focused primarily on lithium. Unlike larger diversified miners, it’s a pure developer: its value is tied to identifying high-quality lithium resources and progressing them toward eventual production.

This makes the company part of the early-stage pipeline of the battery-materials supply chain and positions it squarely within the speculative but potentially high-growth segment of the lithium market.

The company’s key strength is the quality of its lithium projects. High-grade deposits and favourable geological characteristics can lead to lower operating costs once production begins, giving it the potential for strong margins in positive market conditions.

Share traders are often drawn to Liontown because development-stage companies can see significant share-price growth as they meet milestones such as feasibility studies, financing arrangements, construction approvals and offtake agreements with battery manufacturers.

For CFD traders, it provides a different type of trading opportunity compared to large, diversified miners. The stock tends to exhibit sharper and more frequent price swings driven by project updates, drilling results, funding announcements and changes in lithium market sentiment.

Highlights:

• September FY25 quarter results indicate a healthy cash balance of A$420 million¹⁸
• In the same period, revenue was A$68 million, with sales lower because of port congestion and other factors¹⁹
• The share price rose 105.63% over the past six months²⁰

How to trade lithium shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX lithium shares 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

Share trading

1. Open a share trading account with IG AU
2. Search for ASX lithium shares
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about lithium shares

Footnotes

1. Mining Weekly, August 2025
2. Bloomberg, November 2025
3. Trading Economics, November 2025
4. TradingView, November 2025
5. TradingView, November 2025
6. TradingView, November 2025
7. Pilbara Minerals, October 2025
8. Pilbara Minerals, August 2025
9. TradingView, November 2025
10. TradingView, November 2025
11. Mineral Resources, October 2025
12. TradingView, November 2025
13. TradingView, November 2025
14. IGO, October 2025
15. IGO, October 2025
16. TradingView, October 2025
17. TradingView, November 2025
18. Liontown, October 2025
19. Liontown, October 2025
20. TradingView, October 2025
21. International Lithium Association, May 2025