Are you wanting exposure to the lithium industry while it is down in the dumps?
If you are, then it could be worth considering the three ASX lithium stocks listed below.
These lithium shares have just been named as buys by brokers this month and could generate decent returns. Here's what they are saying about them:
Arcadium Lithium (ASX: LTM)
Bell Potter remains very positive on the lithium industry and believes that Arcadium Lithium's beaten down shares offer significant value for money.
It has the lithium giant on its favoured list due to partly to its diversified exposure to lithium and significant production growth potential. The broker said:
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 has a buy rating and $9.50 price target on its shares.
IGO Ltd (ASX: IGO)
Goldman Sachs may be bearish on lithium, but it is bullish on this ASX lithium stock.
This is due largely to the company's low costs. It feels this leaves IGO well-positioned to navigate the current environment of low prices. It said:
Greenbushes is the lowest cost lithium asset in our coverage. Production growth more than offsets increasing strip ratio: The addition of CGP3 (under construction) and CGP4 (planned) should take Greenbushes production capacity from ~1.5Mtpa today to ~2.4Mtpa (excluding tailings processing of ~0.3Mtpa), and they are planned to be funded from existing Greenbushes debt facilities, combined with Greenbushes cash flows (though we factor in below nameplate). We reiterate our belief that further Greenbushes expansion remains one of the most economically compelling brownfield lithium projects.
Goldman has a buy rating and $8.10 price target on IGO's shares
Latin Resources Ltd (ASX: LRS)
A speculative option for investors to consider buying is Latin Resources.
It is an ASX lithium stock that is developing the 100% owned Salinas Lithium Project in Minas Gerais, Brazil.
Bell Potter was pleased with its recent mineral resource estimate at the Colina deposit. And given its bullish view on the lithium market, it sees the company as well-positioned for the future. It said:
Colina has the potential to deliver new lithium supply into what we expect to be structurally short markets. Uncommitted offtake and an open share register provide further strategic appeal.
Bell Potter has a speculative buy rating and 40 cents price target on its shares.
