Australia is the world’s leading exporter of lithium. In the year 2020, 46% of the world’s
lithium came from Australia and exports of lithium are expected to continue to increase
and is forecasted to contribute $9.4 billion in revenue to the Australian economy by 2023-24.
According to Australian Bureau of Statistics, in June 2022,
exports of lithium concentrates reached a record high of $1,163m, up $1,073m
(1189%) from June month 2021. For most of 2021, monthly lithium exports did not exceed $250m.
For June quarter 2022, total lithium exports were $2,632m. From a state perspective, Western
Australia accounted for over 99% of Australian lithium exports in each month since January 2021.
Let’s now look at the top five ASX lithium stocks by market capitalization.
First on the list is RIO Tinto
Rio Tinto searches for and extracts a variety of minerals worldwide,
with the heaviest concentrations in north America and Australia. Lithium is part of their portfolio
of materials. Lithium is a key element needed for low-carbon technologies including
the electrification of transport, large-scale batteries and energy storage. Rio forecasts Double
digit growth in demand of lithium over the next decade. Rio stands with the market capitalization
of AU$ 35.37 billion as of August 5. In past 5-year RIO shares have surged nearly 54%
Next, on the list is Mineral Resources which is an innovative and leading mining services company,
with a growing world-class portfolio of mining operations across
multiple commodities, including iron ore and lithium. Mineral Resources stands with the
market capitalization of AU$ 10.51 billion as of August 5. From the day it got listed
on ASX Mineral Resources shares have gone up from AU$1,14 to AU$57.65 surging by 4,957%.
Next on the list is Pilbara Minerals Limited which come under metals and mining
sector and is into Lithium and another metal, Tantalum’s exploration, and mine development.
Pilgangoora Lithium-Tantalite Project, which is owned by Pilbara Minerals,
is situated in Western Australia. Pilbara Minerals is one of the leading lithium makers of Australia.
Pilbara Minerals stands with the market capitalization of AU$8.24 billion
as of August 5. In past 5-year Pilbara Minerals shares have surged nearly 697%.
Fourth the list is ALLKEM LIMITED, formerly known as Orocobre,
falls under metals and mining sector as a production and minerals explorer
with focus on developing Lithium/Potash resources in Argentina. The company has a global asset
portfolio with diversification across the development spectrum,
project locations and products. Allkem stands with the market capitalization
of AU$ 7.28 billion as of August 5. In past 5-year Allkem shares have surged nearly 285%.
Last on the list is Liontown Resources which based in West Perth and is engaged
in the exploration and evaluation of mineral properties such as lithium, gold,
vanadium, and nickel deposits in Australia. The company was established in 2006.
Some of the projects held by the company are the Kathleen Valley lithium-tantalum,
the Buldania and Toolebuc. Liontown Resources stands with the market capitalization
of AU$ 3.09 billion as of August 5. In past 5-year Liontown shares have skyrocketed nearly 14,950%.