By Tayo Olayinka
It’s not surprising anymore that Canada is a key player in the global lithium market. The reason is Canada’s vast lithium resources and growing demand for lithium in the electric vehicle (EV) industry. Many lithium mining companies, such as Avalon Advanced Materials and Volt Lithium, actively contribute to Canada’s lithium research and development and extraction.
Avalon, for instance, is advancing its lithium processing plant in Ontario to supply high-quality battery-grade lithium hydroxide to meet the increasing demand. Additionally, with its unique technology for extracting lithium from oilfield brine, Volt Lithium in Alberta can make it the premier lithium producer in North America.
However, these are just two Canadian lithium mining companies. Many other companies can’t be ignored if you plan to invest in lithium stocks in Canada. Let’s discuss the best lithium ion mining companies.
The ubiquitous cell lithium CR2032 batteries. (Source: Adobe Stock)
1. Volt Lithium Corp. (TSXV:VLT)
Volt Lithium Corp. is one of the best Canadian lithium mining companies based in Calgary. It specializes in extracting lithium from oilfield brine, a unique approach to traditional lithium mining. Volt holds a 100 per cent interest in the Rainbow Lake Project in Northwest Alberta, covering 173,990 hectares, and is focused on producing lithium hydroxide and carbonate.
Volt has made huge investments in technology and infrastructure. The company recently scaled its lithium extraction capacity in the Permian Basin in Texas, doubling processing to more than 200,000 litres per day. This milestone increases its ability to extract lithium more efficiently from brine water for operational expansion.
In 2024, Volt Lithium’s stock has shown considerable volatility. Its shares have seen a year-to-date increase of 86.67 per cent, with a 52-week range of C$0.16 to C$0.49. The company has a market capitalization of approximately C$58.34 million, and despite fluctuations, its technological advancements make it one of the top Canadian lithium mining companies.
2. Lithium Chile (TSXV:LITH)
Lithium Chile Inc. is another Canadian mining company that focuses on lithium and copper exploration in Chile and Argentina. The company has high lithium reserves, primarily through its flagship Salar de Arizaro in Argentina, where it recently increased its lithium carbonate equivalent resource by 24 per cent, now totalling more than 4.12 million metric tons.
Lithium Chile has invested heavily in expanding its lithium footprint in South America, including holding one of Chile’s largest lithium land packages. It has also been at the forefront of resource development, using advanced technology to enhance exploration and extraction efforts. These efforts make it a key player in the lithium market.
Lithium Chile’s shares (TSXV: LITH) are currently priced at around C$0.55, with a market cap of approximately C$113 million. The stock has been volatile, experiencing a 28.57 per cent decrease over the past 52 weeks. However, with strong project developments in 2024, it remains an attractive choice if you want to invest in lithium.
3. Q2 Metals (TSXV:QTWO)
Q2 Metals Corp. is another lithium mining company focused on exploring and developing lithium and gold resources. Its flagship property is the Mia Lithium Project in Quebec’s James Bay region. In addition to lithium, Q2 also explores gold at its Big Hill and Titan projects in Australia. In early 2023, the company changed its name from Queensland Gold Hills Corp. to reflect its shift towards lithium exploration.
Q2 Metals has invested in the Mia Lithium Property, which spans more than 8,668 hectares. It has several drilling programs to expand lithium resources to capitalize on the growing demand for battery metals. The company also works on advanced technologies to boost lithium recovery and processing.
Q2 Metals’ stock, traded under the ticker QMET on the TSXV, has fluctuated recently, reflecting market volatility. The company’s exploration potential, particularly in lithium, makes it a speculative but promising investment for those looking at the growing EV market.
4. Foremost Lithium (CSE:FAT)
Foremost Lithium Resource & Technology Ltd. is a hard-rock lithium exploration company in the North American clean energy transition. Its flagship properties include Lithium Lane Projects in Snow Lake, Manitoba, and Lac Simard South in Quebec, covering more than 43,000 acres in key lithium-rich regions.
Foremost Lithium has invested in drilling programs in its Snow Lake and Zoro properties, achieving an impressive 81.6 per cent lithium recovery rate at its Dyke 1 project. It has also extended claims on its Manitoba projects and acquired new properties, such as Lac Simard South, which is host to identified lithium pegmatites.
As of September 2024, Foremost Lithium’s stock is priced at around C$4.22 on the Canadian Securities Exchange, showing a 6.3 per cent rise over recent trading sessions. However, the stock remains volatile, with a year-to-date decrease of nearly 48 per cent, making it a speculative but potentially rewarding investment depending on market conditions and lithium demand.
5. Lithium Ionic Corp. (TSXV:LTH)
Lithium Ionic Corp. is one of the top Canadian lithium mining companies developing lithium properties in Brazil. The company holds key projects such as the Itinga Project, which covers approximately 1,300 hectares in the Aracuai lithium province, and an 85 per cent interest in the Salinas Project. These projects are in one of the world’s most promising lithium belts.
Interestingly, Lithium Ionic’s Itinga project is near the Grota do Cirilo project, operated by Sigma Lithium, and is among the top producers globally. The company has also achieved notable success, discovering high-grade lithium deposits in the Salinas project with grades exceeding 1.6 per cent Li2O. It has also worked on the feasibility study for its Bandeira lithium project.
Currently, the stock is valued at approximately C$0.99 per share and has a market capitalization of around C$101 million. Over the past year, the stock has fluctuated between $0.61 and C$3.04, showing the volatility typical in early-stage mining companies.
Invest in lithium stocks
Conclusion
Canada’s role in the global lithium market will expand because of its lithium resources and the rising demand from the electric vehicle sector. Lithium mining companies such as Avalon Advanced Materials and Volt Lithium are accelerating lithium extraction and processing. Avalon is notably progressing with its lithium processing plant in Ontario, while Volt Lithium’s innovative extraction methods from oilfield brine are setting new standards for lithium-ion mining companies.
We have discussed many lithium mining companies, which could be a great choice if you want to invest in lithium stocks. Volt Lithium, for example, has doubled its lithium extraction capacity. Meanwhile, Lithium Chile is expanding its lithium footprint in South America. However, just like any other investment, lithium stocks are not risk-averse. Therefore, you should do due diligence in advance.
Join the discussion: Find out what everybody’s saying about lithium stocks on the Bullboards, and check out the rest of Stockhouse’s stock forums and message boards.
This content contains affiliate links for Interactive Brokers Group Inc., and Stockhouse receives payment for qualified leads. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo: Adobe Stock)