The lithium sector remains one of the most promising investment opportunities in FY25, driven by the global demand for electric vehicles (EVs) and battery storage solutions. Investors seeking exposure to this booming industry should explore the top ASX lithium stocks that have strong growth potential. The Australian Securities Exchange (ASX) is home to several companies specializing in lithium exploration, production, and processing, making it an attractive market for those looking to capitalize on the sector’s expansion.

For those wondering which ASX lithium stocks to buy, companies with established mining operations, solid financials, and long-term supply agreements with EV manufacturers tend to be the most promising. Some of the best performers in the ASX lithium stocks list include producers with direct exposure to lithium spodumene production, as well as emerging players developing new projects. Investors also keep a close eye on the cheapest lithium stocks ASX has to offer, as undervalued stocks can provide significant upside potential if lithium prices surge.

When assessing lithium stocks, factors such as production capacity, cost efficiency, and market trends play a crucial role in determining investment potential. With battery demand expected to soar, the Australian lithium market remains a hotspot for investors looking to benefit from the clean energy transition. Whether you’re seeking blue-chip lithium stocks or high-risk, high-reward junior miners, keeping an eye on the top ASX lithium stocks is essential for making informed investment decisions in FY25.

Here is one great ASX Lithium Stock to Buy & hold for 2025:

Pilbara Minerals Limited (ASX: PLS)

In the December Quarter of FY25, Pilbara Minerals Limited (ASX: PLS) reported a production volume of 188.2k dry metric tonnes (dmt) of spodumene concentrate, a 14% decrease from the previous quarter (220.1k dmt). This drop was due to the successful transition to the new P850 operating model and planned downtime at the P680 Crushing and Sorting facility.

Pilbara’s strong balance sheet position included a cash balance of $1.2 billion, although it decreased by $182 million from the prior quarter due to ongoing investments in the P1000 Project and other capital expenditures.

The P1000 Project, a significant expansion at Pilgangoora, is progressing on schedule and within budget, reaching nearly 95% completion by the end of the December Quarter. Greenfield construction is complete, with only brownfield tie-ins remaining. Wet commissioning started ahead of schedule, and all major equipment has been installed.

Outlook:

Pilbara continued to ramp up production at the POSCO Pilbara Lithium Solution Co. Ltd. (PPLS) Lithium Hydroxide Monohydrate (LHM) Chemical Facility in South Korea. Despite operational pauses in late October 2024 for product certification, operations resumed in November. Meanwhile, Pilbara and Ganfeng are progressing their joint feasibility study (FS) for a potential lithium chemical conversion facility. The study, focused on jurisdictional shortlisting and cost analysis, is expected to conclude by the end of CY25. Additionally, Pilbara achieved a major milestone by receiving its first delivery of liquefied natural gas (LNG) to the Pilgangoora operation. This is part of the expansion of the existing power station, which includes new gas generators and an LNG storage facility. The final step in the power strategy is the construction of a lithium-ion battery storage system and transformers, expected to be completed by March 2025.

Technical Analysis:

The stock, from a bearish position, is now gaining strength and stabilising. It has come above merging 14/21 EMAs (Exponential moving average) on the daily timeframe. Trading above its daily support, it has become rangebound on the monthly chart. MACD (Moving average convergence and divergence) signalling decreasing downward pressure, it can have the potential to return to bullishness in the long term.

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