Why Lithium Stocks Are Heating Up Again

Lithium prices took a hit in 2024, but don’t be fooled — this is how big rallies begin. Just like previous cycles in 2016 and 2021, when lithium was down, it came back with full force. The global demand for electric vehicles, large-scale battery storage, and clean energy solutions continues to build rapidly.

According to the International Energy Agency, global electric vehicle sales are expected to reach 17 million units by 2025, up from 14 million in 2023. That means more batteries, and more batteries mean more lithium.

Smart investors are now scanning the ASX for underappreciated lithium stocks with the potential to surge in the next rally. Two standout names leading that list are Core Lithium and Liontown Resources.

Core Lithium (ASX: CXO)
A small, nimble player with serious upside potential

About the Company
Core Lithium owns the Finniss Lithium Project in the Northern Territory, located just 88 kilometers from Darwin Port. This is a hard-rock lithium project built for scalability, with excellent transport links and infrastructure already in place. Operations were paused in 2024 due to market conditions, but Core didn’t go silent. Instead, the company invested time and resources into preparing for a powerful comeback.

Why Core Lithium Could Surge

Restart-Ready and Waiting
The company is keeping the Finniss Project in a restart-ready state. It has completed condition assessments, upgraded infrastructure, and is progressing a Restart Study to resume production quickly when prices recover.

Resource Upgrade Strengthens the Case
In September 2024, Core announced a major ore reserve upgrade at its BP33 underground deposit. This move reinforces the long-term viability of the project and its profitability when lithium prices bounce back.

Exploration Potential
The company is actively drilling high-potential zones such as Blackbeard and Shoobridge. Early results have shown high-grade lithium pegmatites, signaling strong prospects for future resource growth.

Financial Snapshot (First Half of FY25)

1. Net loss reduced to 17.2 million from 167.6 million a year earlier.
2. Cash outflow from operations decreased by over 45%.
3. Cash and short-term investments stood at 50.3 million.

Investor Takeaway
Core Lithium is one of the best-positioned juniors to restart quickly and scale up when the lithium market turns. With fresh resources, strong exploration results, and a lean setup, it is a prime candidate for a breakout during the next battery boom.

Liontown Resources (ASX: LTR)
An emerging lithium producer with serious momentum

About the Company
Liontown Resources is now a producer, having officially commenced commercial production at the Kathleen Valley Lithium Project in early 2025. Located in Western Australia, this project has quickly become one of the top new lithium operations in the country.

Why Liontown Could Surge

Smooth Entry into Production
Liontown produced 116 thousand dry metric tonnes of spodumene concentrate by December 2024. The ramp-up phase exceeded expectations, proving the company’s ability to operate efficiently from the get-go.

Global Partnerships and Strong Backing
The company has signed long-term offtake agreements with major battery players, including LG Energy Solution, which also invested 250 million US dollars through convertible notes in July 2024. These partnerships add credibility and stable revenue streams.

Sustainable and Efficient Operations
The company achieved 80 percent renewable power penetration at its hybrid power station, beating its original target of 60 percent. It is also aiming for 70 percent lithium recovery by fiscal year 2026, promising better margins and greener operations.

Expansion is Already Underway
With over 1.3 million tonnes of ore stockpiled, Liontown is setting up a seamless transition from open-pit to underground mining in 2026, giving it the ability to maintain and grow production levels over time.

Financial Snapshot (First Half of FY25)

Total revenue came in at 100.41 million

Net loss narrowed by 50 percent year-on-year to 15 million

Cash and short-term investments stood strong at 192.87 million

Investor Takeaway
Liontown offers investors a more de-risked lithium story. With production underway, strong financial backing, and an environmentally responsible approach, this is a long-term growth story backed by real numbers and real production.

Looking Ahead: Which Lithium Stock Is Right for You

Whether you are after high-growth exploration or stable production-based returns, these two ASX lithium players offer compelling choices.

Core Lithium is perfect for investors looking for high-upside potential from a low base. With lean operations and multiple catalysts lined up, it is a prime candidate to benefit from a lithium price recovery.

Liontown Resources suits those who prefer a more established business model. With proven production, global customers, and financial stability, it offers a strong foundation for long-term value creation.

Final Thoughts

The lithium market may be quiet now, but all signs point to another strong upcycle. As electric vehicles continue to dominate global auto markets and renewable energy adoption accelerates, demand for lithium will only grow stronger.

Both Core Lithium and Liontown Resources are ready to ride that wave — the only question is, will you be on board when they take off?

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.