There is much speculation about whether lithium stocks have had their run, considering the steep price rises seen the past year or two for the mineral.
But many experts still reckon the insatiable demand for the battery ingredient will outstrip supply for the foreseeable future.
Two such professionals this week named three ASX lithium shares to buy at the moment:
'Strong growth potential' with a possible surprise coming
Seneca investment advisor Arthur Garipoli is pleased with where Pilbara Minerals Ltd (ASX: PLS) is heading.
"In the December quarter, Pilbara delivered a 10% increase in spodumene concentrate production compared to the September quarter," Garipoli told The Bull.
"Unit operating costs were down 5% and shipments were up 8%. The company's cash balance rose by 62% to $2.226 billion."
The Pilbara share price is up 55.8% over the past year.
Those who buy the stock now may also benefit from a pleasant surprise down the track.
"In our view, the company offers strong growth potential. It may announce a maiden interim dividend."
Garipoli is not the only one excited about Pilbara.
According to CMC Markets, eight out of 16 analysts that currently cover the stock rate it as a strong buy. Five are recommending a hold, while three reckon Pilbara's a sell.
'Business growth profile is appealing'
Mineral Resources Ltd (ASX: MIN) doesn't just produce lithium but is also involved in providing services for iron ore hubs.
"Mineral Resources is underpinned by its resilient mining services business, holding long-term contracts with some of Australia's biggest tier-1 miners," said Shaw and Partners senior investment advisor Jed Richards.
And, he adds, the stock is an absolute bargain at the moment.
"The company's target to double volumes over the next three-to-five years isn't fully captured in analyst forecasts, nor is the company's current market valuation.
"In our view, the business growth profile is appealing."
Richards' buy conviction is almost universally agreed by upon his peers. CMC Markets currently shows 12 out of 16 analysts rating Mineral Resources as a strong buy.
The Mineral Resources share price has gained a tidy 65.8% over the last 12 months.
18 months until this stock potentially rockets
Leo Lithium Ltd (ASX: LLL) differs from the other two buy recommendations in that it has yet to produce lithium.
But Garipoli is confident that's not far away.
"The company is developing the Goulamina lithium mine in Mali and recently announced a resource upgrade," he said.
"In our view, this confirms the outstanding scale of a high-grade project. The project is less than 18 months from production."
Leo Lithium, which is backed by a deep-pocketed Chinese benefactor, could see its share price going through the roof once it actually starts producing minerals.
"Partner Ganfeng Lithium is providing funding to the project. More drilling results are imminent, but sovereign risk remains."
Garipoli's peers agree on Leo's potential. All five analysts currently covering the stock say it's a strong buy, according to CMC Markets.
The Leo share price is now more than 29% higher than where it was a year ago.
