Lithium Stocks: Buying Opportunities Amidst Volatility
Are lithium stocks a buy right now—even with prices in the doldrums? Under the Radar Report’s mining analyst Peter Chilton joins Richard Hemming to break down what’s really happening in the lithium market, and where savvy investors might find opportunity amid the noise.
Despite Low Prices, Lithium Demand Is Soaring
Lithium prices may be weak, but lithium stocks have started to bounce. As Peter Chilton explains, this rally is being driven by rising demand for electric vehicles (EVs) and battery storage, particularly in China and Europe. The market is forward-looking, and many investors are already pricing in a recovery 12 months out.
“Demand continues to rise very strongly,” says Chilton. “We’re seeing strong EV uptake and battery demand around the globe.”
So what’s holding lithium prices down? The answer lies in inventory. There’s still a glut in the supply chain, from mine stockpiles to battery makers. But as this excess clears out—a process already underway—Chilton believes prices could recover.
Forecast: Lithium Demand Set to Double by 2030
We’re still early in the EV adoption cycle. Annual lithium demand is around 1.5 million tonnes today but is projected to more than double to 3 million tonnes by 2030, and possibly reach 4 million tonnes by 2035.
Lithium isn’t easy to replace. Its energy density and light weight make it ideal for mobile applications—something few alternatives can match. That’s why it continues to dominate battery chemistry despite new contenders.
Why Lithium Stocks Still Make Sense in a Diversified Portfolio
Chilton and Hemming agree: lithium stocks can play a high-growth, high-risk role in a portfolio. But that risk can be managed. One strategy Under the Radar emphasizes is taking profits when stocks double, removing your capital and playing with “house money.”
A perfect example? Pilbara Minerals (ASX: PLS). First tipped by Peter Chilton in 2017 at 75 cents, it surged past $4 in 2022–2023. Recently upgraded by Under the Radar from Hold to Speculative Buy, Pilbara remains one of the flagships of the Australian lithium sector. The company is well managed, globally scaled, and financially strong—even with prices down.
“Pilbara can basically treble its production from here,” says Chilton. “They’re expanding into Brazil and maintaining profitability even at current prices.”
Another stock discussed? Liontown Resources (ASX: LTR). It’s further back in the development cycle and currently on Hold, but management confidence and customer demand (including from Ford) make it a company to watch.
Nuclear vs Lithium: Which is Lower Risk?
When asked to choose between lithium and nuclear, Chilton picks nuclear for lower risk exposure in the current environment. He sees consistent, positive global developments for nuclear energy—including small modular reactors (SMRs) and reopened plants.
But that doesn’t mean lithium is off the radar—far from it. It remains a core critical mineral and an integral part of any growth-focused resources strategy.
Get the Full Picture — Watch the Video Now
This in-depth conversation covers:
- Lithium demand forecasts and global EV growth
- Stock-specific insights on Pilbara Minerals $PLS and Liontown $LTR
- Market timing and valuation opportunities
- Risks and rewards of lithium vs nuclear
- Portfolio strategies to manage volatility
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