The Top Canadian Lithium Stocks to Buy in March 2025

Interest in lithium has surged, driving a substantial increase in financial investment in the industry. This is primarily due to the automotive sector’s rush to fulfill the demand for electric vehicles (EVs) as the world shifts to more greener forms of travel and energy usage.

However, a widespread misconception among investors and lithium is they believe the EV industry is the only use case for the commodity. And while EV batteries are the main driver of the volume today, the use of lithium goes far beyond just batteries.

So what exactly is lithium, and how is it used?

Lithium is a light metal. It is both the metal and solid element with the least density. It was discovered in the late 1700s and is quickly being adopted for many use cases.

Many devices you use today, including your mobile phone, laptop, digital camera, electric vehicle, and even pacemakers and clocks, utilize lithium. For most of these, the use case will be through rechargeable batteries. However, glass, ceramics, and air conditioning use lithium oxide and chloride.

Australia, Chile, and China are the world’s top 3 producers, and Chile presently holds the world’s largest lithium reserves. In Canada, we’re low on the scale, with only 2.5% of the world’s total lithium reserves.

However, although headquartered here, many of the Canadian stocks on this list produce and explore lithium internationally. Low reserves here aren’t an issue if you’re considering investing in lithium stocks.

Lets dig into some of the best. One thing I do want to note before I get started, however, is how volatile this sector is. A lot of these stocks are speculative in nature, and will have gut-wrenching volatility. The vast majority of retail investors will not have the stomach to hold these companies long-term and will end up making panic driven decisions.

Invest capital in the space that you wouldn’t be bothered about if it went to $0, and make sure these types of early exploration and mining companies fit within your risk tolerance.

Why electric vehicles have sent lithium’s demand soaring

Lithium-ion batteries are the most-used type of batteries for EVs and stationary energy storage facilities. The estimates vary wildly, but by 2030, we will need more than 3 million metric tons of lithium.

With more and more people adopting electric vehicles and other electronics post-pandemic, I’d be betting on the larger end of estimates. The only difficulty here is lithium prices have collapsed in value since 2023.

Because of this, the stocks in the industry are down significantly, with even major players facing 75%+ losses. However, investors still want exposure to this industry for good reason, whether it is through an established Canadian lithium miner, a pure-play exploration company, or even a lithium ETF.

Although the demand for electric vehicles has taken center stage, Lithium use in energy storage is expected to surpass EV use by 2030.

What about a lithium ETF?

If Canadian investors seek a top lithium ETF, you are in luck. In early 2021, Global X developed its Global Lithium Producers Index ETF, trading under the ticker HLIT.

At the time of writing, the fund has assets under management of just over $13M. A few Canadian lithium stocks in the list above are in the top holdings. My only concern with the fund at this point is there has been a lot of outflows in light of falling lithium prices. Global X may roll the fund up if it does not get continued interest.

Buying individual lithium companies, especially in their early stages of production or exploration, brings on significant risk. So, it may make sense for investors to “buy the whole industry” with a producer exchange-traded fund. If one company struggles, it likely won’t impact the fund as much as if an investor held the individual equity.

But make no mistake about it, the fund will still be volatile. It has taken substantial losses since 2023.

The demand for lithium at the current time could push lithium companies

There is a specific subset of companies that many investors don’t think of that are going to benefit from the increase in battery demand due to EV adoption. Sure, a company like Tesla (TSLA) and the inevitable follow-up of many other major auto producers will churn out more revenue from EV sales. But ultimately, we need to get this stuff out of the ground first.

And with that, lithium mining, particularly companies that deal with the exploration of lithium properties, extraction, and the sale of lithium, are expected to benefit significantly from the increase in lithium’s demand. And most of these companies look to the stock market to raise funding and continue exploration efforts.

However, as mentioned, a caveat to this list is that you need a high-risk tolerance to invest in these companies. Even the most stable lithium miners will have significant volatility. You have to be prepared for large drawdowns and runups in price and be able to handle them emotionally. If you’re prone to panic selling, the sector isn’t for you.

Overall, there is a variety of top lithium stocks on this list

When we made this list, we aimed to provide something for everyone. There are revenue-producing lithium companies on this list and those that aren’t expected to produce revenue or earnings for a long time.

Investing in lithium stocks is unlike investing in an established sector like Canadian telecom. You have companies at very different stages of lifecycles, and conducting a significant amount of due diligence before investing is essential.

Two companies, both of which are lithium miners, can have significant differences regarding risk. If you’re risk-averse, there is likely too much volatility in the industry.

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