Top 3 ASX Lithium Stocks To Buy In January 2022

The ASX 200 finished lower on Friday, down by -1.08% to $7,393.90 and extending losses of 0.84% since the beginning of the week. Get Insights on best ASX Lithium stocks of 2022.

Our List of ASX Lithium Stocks Of 2022

One of the market’s hottest areas in 2021 was the lithium sector. Hence, demand for white metal soared thanks to its use in electric vehicle batteries and renewable energy. Accordingly, huge returns were generated for investors over the 12 months.

But which ASX lithium stocks were the best ones to own in 2021? Listed below are three lithium shares included in the All-Ordinaries index that provided mouth-watering returns for investors last year. These are shares we believe will continue to outperform this year.

AVZ Minerals Limited (ASX: AVZ)

We start with AVZ. AVZ Minerals is a Perth-based company focused on mineral exploration. The company’s critical project is the Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC).

The AVZ Minerals share price was a strong performer and rose 356% over the last 12 months. There were concerns in recent years that this lithium developer’s Manono project in the DRC was not economically viable and doomed to failure. However, a significant rise in lithium prices has suddenly changed all that.

This ASX lithium stock is due to make a final investment decision on the project soon.

AVZ closed the week in green, adding 0.54% to its year-to-date impressive 19.35% gains.

Liontown Resources (ASX: LTR)

One of the hot lithium stocks of the moment is Liontown. This lithium stock has been pushing for new all-time highs every single day since the beginning of this week. Impressively, since the last twelve months, Liontown shares have grown by 294%.

For a week, Liontown did not stop on its climb. The share price went from $1.57 on Monday to $1.715 at today’s closing. That is a terrific 10.8% plus in just a few trading sessions. We could be wondering what happened with such a ride. Liontown share price is soaring despite no news having been released by the company.

Although, the excitement around the lithium developer’s Kathleen Valley lithium project helped drive LTR shares higher. The project’s DFS highlighted the production of 658ktpa SC6 with the potential for conversion into 86ktpa lithium hydroxide.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is the only one in the group that is already producing lithium and benefiting from sky high prices. Following last year’s gain, the company’s market capitalisation has now ballooned to almost $10.5 billion. Thus, this makes it the largest lithium stock on the ASX. Finally, the Pilbara Minerals share price continued its impressive run and charged 268% higher in 2021.

Frequently Asked Questions about Lithium Stocks On ASX

1. Will Lithium Stocks on ASX Perform Well In 2022?

The lithium sector will be one of the market’s hottest areas in 2021. Hence, huge returns were generated for investors over the last twelve months as demand for lithium soared. We believe the positive momentum will continue onwards 2022.

2. Are Lithium Stocks on the ASX a good Investment?

Lithium is a hot commodity these days. Although lithium is a commonplace substance, prices for the material skyrocketed some 400% in 2021. Since it is used in the manufacture of batteries for EVs. Lithium is the future and definitely a good investment.

3. Who is the biggest Lithium Producer in Australia?

Pilbara Minerals (ASX: PLS) is the leading Australian lithium mining company with a market capitalisation superior to $6.8 billion.