2 Lithium Penny Stocks to Watch As EV Sales Surge
The electric vehicle (EV) revolution is gaining unstoppable momentum, reshaping the global energy and mining landscape. As governments, automakers, and consumers rally behind cleaner transportation, lithium—the “white gold” powering EV batteries—has become one of the most sought-after commodities.
According to recent projections, global EV sales are set to surpass 20 million units in 2025, marking an impressive 35% year-over-year growth. This surge is not only accelerating demand for lithium but also creating lucrative opportunities for investors looking to tap into the next phase of the green energy boom.
Among the most intriguing opportunities on the Australian Securities Exchange (ASX) are Pursuit Minerals (ASX: PUR) and First Lithium (ASX: FL1)—two emerging lithium penny stocks that could benefit immensely from the rapid expansion of EV adoption and tightening global lithium supply chains.
Pursuit Minerals (ASX: PUR): A Rising Contender in Argentina’s Lithium Triangle
Pursuit Minerals has captured the attention of investors with its Rio Grande Sur Project in Argentina, strategically located in the world-famous Lithium Triangle—a region responsible for over half of the world’s lithium production. This area, spanning parts of Argentina, Bolivia, and Chile, is renowned for its rich lithium brine deposits and favorable mining environment.
The company recently announced a JORC-compliant resource of 1.104 million tonnes of lithium carbonate equivalent (LCE), featuring lithium brine grades as high as 620 mg/L. These impressive grades place Pursuit’s project among the higher-quality brine assets globally, supporting the potential for low-cost, long-life production.
A significant breakthrough came when Pursuit successfully produced 99.5% high-purity lithium carbonate, demonstrating its technical capability and commercial readiness. The company has already dispatched samples to potential offtake and strategic partners, paving the way for future supply agreements that could strengthen its financial position.
Argentina’s improving mining policies and pro-market reforms have further enhanced the attractiveness of Pursuit’s operations. The government’s renewed focus on foreign investment and sustainable resource development adds a tailwind to companies like Pursuit operating in the region.
Despite being a penny stock, Pursuit Minerals offers leveraged exposure to a Tier-1 lithium jurisdiction. Its high-grade resource, advancing project timeline, and growing industry partnerships make it a compelling speculative play for investors betting on the next wave of the EV boom.
Market sentiment has also turned more optimistic as lithium prices stabilize following a correction in early 2025. With demand expected to triple by 2030, Pursuit’s strong fundamentals and promising project economics position it well for long-term growth.
First Lithium (ASX: FL1): Unlocking West Africa’s Lithium Potential
While many lithium developers are concentrated in South America or Australia, First Lithium (ASX: FL1) is charting its own path in West Africa, specifically in Mali—a country fast emerging as a key player in the global lithium race.
First Lithium holds two highly prospective exploration permits: Faraba and Gouna. Both tenements sit within Mali’s established lithium belt, which has already attracted global attention thanks to several major discoveries in recent years. The company’s focus is on advancing exploration activities to define new resources and potentially attract joint venture or development partners.
Although still in the early exploration stage, First Lithium provides investors with exposure to one of the most underexplored yet promising lithium regions in the world. With lithium demand rising and investors seeking diversification beyond the traditional South American and Australian hubs, Mali’s lithium story is quickly gaining traction.
The company’s small market capitalization makes it a true penny stock, offering substantial upside potential as exploration results unfold. Any significant discovery or progress toward a defined resource could act as a major catalyst for the stock’s performance.
In addition, the geopolitical landscape in West Africa is becoming increasingly supportive of mining investments, with regional governments recognizing the economic potential of lithium and other critical minerals. This favorable shift enhances First Lithium’s long-term prospects as it builds its exploration footprint.
EV Sales Surge: The Backbone of Lithium’s Future
The rapid rise of electric vehicles continues to reshape the global commodity market. Industry analysts forecast global EV sales to reach over 20 million units in 2025, driven by:
- Government incentives promoting zero-emission vehicles
- Declining battery costs, improving EV affordability
- Expanding EV model ranges from major automakers such as Tesla, BYD, and Volkswagen
- Stricter emission regulations across Europe, the U.S., and China
Notably, EV batteries now account for nearly 90% of global lithium demand, up from 64% in 2020. This demand surge underscores the central role lithium plays in the clean energy transition.
Although lithium prices experienced volatility in early 2025 due to temporary oversupply, the market is gradually stabilizing. Analysts expect lithium carbonate prices to hover between USD 9,000 and USD 12,000 per tonne, a sustainable range for producers with high-quality assets.
For speculative investors, this correction phase may present a strategic entry point—especially for penny stocks like Pursuit Minerals and First Lithium, which are still in the early stages of their growth cycles but are positioned to benefit from any sustained lithium price recovery.
Why These Penny Stocks Deserve Attention
Both Pursuit Minerals and First Lithium stand out for unique reasons:
Pursuit Minerals (PUR):
- Holds a high-grade, large-scale lithium resource in one of the most lithium-rich regions globally.
- Successfully produced battery-grade lithium carbonate.
- Operates in a supportive jurisdiction benefiting from Argentina’s pro-mining policies.
First Lithium (FL1):
- Provides exposure to West Africa’s emerging lithium basin, an underexplored yet promising region.
- Maintains low market capitalization, offering high-risk, high-reward potential for early investors.
- Actively expanding exploration programs to uncover new lithium resources.
Final Thoughts: Positioned for the EV-Driven Future
As the world races toward a zero-emission future, the demand for lithium is set to grow exponentially. While large-cap lithium producers dominate headlines, penny stocks often offer the highest potential returns for investors willing to embrace risk and patience.
Pursuit Minerals (ASX: PUR) and First Lithium (ASX: FL1) may still be in the early innings of their journeys, but both possess strategic assets that could deliver outsized gains as the EV revolution gathers pace.
For growth-oriented investors, these two lithium penny stocks are worth keeping on the radar—because as EV adoption accelerates, today’s small-cap explorers could become tomorrow’s major battery material suppliers.
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