2 of the best ASX 200 lithium stocks to buy now

Analysts speak very highly about these lithium miners.

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If you're interested in gaining exposure to the lithium sector, then it could be worth considering the two ASX 200 lithium stocks listed below.

These lithium miners have been named as top picks by a couple of leading brokers. Here's what they are saying about them:

Arcadium Lithium (ASX: LTM) (NYSE: LTM)

The team at Bell Potter think that Arcadium Lithium could be a great option right now.

The broker has the lithium giant on its favoured list. It likes Arcadium Lithium due to its diversified exposure to lithium, strong balance sheet, and significant production growth potential. Bell Potter commented:

The company's flagship projects are brine assets located in Argentina: Olaroz (66.5% LTM) where Stage 2 is currently ramping up to increase production from 17.5ktpa to 42.5ktpa from LCE (lithium carbonate equivalent), and Hombre Muerto currently expanding from 20ktpa to 40ktpa LCE.

LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.

Bell Potter currently has a buy rating and a $10.40 price target on its shares. Based on the current Arcadium Lithium share price of $5.83, this suggests that a potential return of almost 80% is possible over the next 12 months.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Morgans have this ASX 200 lithium stock on their best ideas list.

The broker is positive on the company and supportive of its plan to grow production through the cycle. It commented:

We view PLS as a fundamentally strong and globally significant hard-rock lithium miner. The company has successfully executed on ramping up the expansion of Pilgangoora, while progressing plans to expand output (P680 and P1000). Supported by a strong balance sheet, with net cash at ~A$2.1bn at the end of December, PLS' expansion plans remain uniquely undeterred by the significant weakness in lithium prices.

For PLS, the best form of defence against lithium prices is to stay on the attack, with its medium-term plans to continue expanding its production aimed primarily at building greater economies of scale and a more defensive margin.

Morgans currently has an add rating and a $4.30 price target on the miner's shares. This implies a potential upside of 10% for investors over the next 12 months.

Motley Fool contributor James Mickleboro has positions in Arcadium Lithium Plc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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