The global lithium market enters 2026 after a punishing 2025 marked by oversupply, weaker-than-expected EV demand and sustained price pressure, although things began turning around for lithium stocks in Q4.
Lithium carbonate prices in North Asia fell to four-year lows early in the year, triggering production cuts and project delays, before rebounding sharply in the second half. By late December, prices had jumped 56 percent from their January levels, signaling the start of a potential market rebalancing.
Analysts point to tightening inventories and high-cost supply under strain as early signs of a recovery, while long-term demand from electrification, energy storage and the energy transition remains intact.
Battery energy storage systems are emerging as a major growth driver, expected to account for roughly a quarter of global battery demand in 2025. In the US, storage could make up 35 to 40 percent of battery demand in the coming years, according to Benchmark Mineral Intelligence’s Iola Hughes.
“LFP is the story right now,” Hughes said, highlighting falling costs and technological innovation as key enablers for large-scale deployment. Global storage remains concentrated in China and the US, but new markets like Saudi Arabia are scaling rapidly.
As storage expands in scale, geography and strategic importance, it is set to become a central pillar of lithium demand heading into 2026.
1. Lithium Argentina (NYSE:LAR)
Year-to-date gain: 106.39 percent
Market cap: US$891.03 million
Share price: US$5.49
Lithium Argentina produces lithium carbonate from its Caucharí-Olaroz brine project in Argentina, developed with Ganfeng Lithium (OTC Pink:GNENF,HKEX:1772). The company was spun out from Lithium Americas in October 2023 and changed its name from Lithium Americas (Argentina) in January 2025.
In mid-April, Lithium Argentina executed a letter of intent with Ganfeng Lithium to jointly advance development across the Pozuelos-Pastos Grandes basins.
In August, Lithium Argentina agreed to form a new joint venture with Ganfeng Lithium that will combine the companies’ projects in the Pozuelos and Pastos Grandes basins of Salta, Argentina.
The joint venture will bring together Ganfeng’s wholly owned Pozuelos-Pastos Grandes (PPG) project and Lithium America’s Pastos Grandes and Sal de la Puna projects, in which Ganfeng currently holds a 15 percent and 35 percent stake respectively.
Once completed, Ganfeng will hold a 67 percent stake in the consolidated PPG project, and Lithium Argentina will hold a 33 percent interest.
In Q4, Lithium Argentina released a positive scoping study for the PPG project, confirming its scale and strong economics. The consolidated project hosts a measured and indicated resource of 15.1 million metric tons of lithium carbonate equivalent (LCE) and is designed for staged production of up to 150,000 metric tons per year over a 30 year mine life.
In the same announcement, the company confirmed receipt of an environmental approval for Stage 1 from the Secretariat of Mining and Energy of the Province of Salta.
Lithium Argentina released its Q3 results in November, noting approximately 8,300 metric tons of lithium carbonate production at its Caucharí-Olaroz operation during the quarter, with 24,000 metric tons produced between January and September.
Company shares rose to a year-to-date high of US$5.58 on December 31, in line with rising lithium carbonate prices.
2. Sociedad Química y Minera (NYSE:SQM)
Year-to-date gain: 87.39 percent
Market cap: US$19.66 billion
Share price: US$68.98
SQM is a major global lithium producer, with operations centered in Chile’s Salar de Atacama. The company extracts lithium from brine and produces lithium carbonate and hydroxide for use in batteries.
SQM is expanding production and holds interests in projects in Australia and China, including a 50/50 joint venture for the Mt Holland lithium operation in Western Australia. In July, the company produced its first battery-grade lithium hydroxide production at its Kwinana refinery in the state.
In late April, Chile’s competition watchdog approved the partnership agreement between SQM and state-owned copper giant Codelco aimed at boosting output at the Atacama salt flat. The deal, first announced in 2024, reached another milestone when it secured approval for an additional lithium quota from Chile’s nuclear energy regulator CChEN.
SQM ended the year finalizing the agreement. The partnership was formalized through SQM’s subsidiary SQM Salar absorbing Codelco’s Minera Tarar and being renamed Nova Andino Litio.
SQM reported a net income of US$404.4 million for the first nine months of 2025, rebounding from a US$524.5 million loss in the same period of 2024. Revenue totaled US$3.25 billion, down 5.9 percent year-over-year, while gross profit reached US$904.1 million.
The company’s third-quarter performance highlighted the turnaround, as SQM achieved record lithium sales volumes. It reported net income of US$178.4 million, up 36 percent from Q3 2024, and revenue of US$1.17 billion, up 8.9 percent. Gross profit for the quarter climbed 23 percent to US$345.8 million.
SQM attributed the rebound to higher realized lithium prices and improved operational efficiency, signaling a strong recovery trajectory for the remainder of 2025.
Shares of SQM reached a year-to-date high of US$71.63 on December 26.
3. Albemarle (NYSE:ALB)
Year-to-date gain: 64.29 percent
Market cap: US$16.71 billion
Share price: US$142.01
North Carolina-based Albemarle is dividing into two primary business units, one of which — the Albemarle Energy Storage unit — is focused wholly on the lithium-ion battery and energy transition markets. It includes the firm’s lithium carbonate, hydroxide and metal production.
Albemarle has a broad portfolio of lithium mines and facilities, with extraction in Chile, Australia and the US. Looking first at Chile, Albemarle produces lithium carbonate at its La Negra lithium conversion plants, which process brine from the Salar de Atacama, the country’s largest salt flat. Albemarle is aiming to implement direct lithium extraction technology at the salt flat to reduce water usage.
Albemarle’s Australian assets Wodgina hard-rock lithium mine in Western Australia, which is owned and operated by the 50/50 MARBL joint venture with Mineral Resources (ASX:MIN,OTC Pink:MALRF). Albemarle wholly owns the on-site Kemerton lithium hydroxide facility. The company’s other Australian joint venture is the Greenbushes hard-rock mine, in which it holds a 49 percent interest.
In late October, Albemarle signed an agreement to sell its 51 percent stake in its refining catalyst business, Ketjen, leaving it with 49 percent ownership, part of a broader portfolio reshaping that also includes the sale of Ketjen’s 50 percent stake in the Eurecat joint venture to partner Axens.
The combined deals are expected to generate approximately US$660 million in pre-tax cash proceeds and strengthen Albemarle’s financial flexibility. Both transactions are anticipated to close in the first half of 2026, subject to regulatory approvals.
In November, Albemarle reported third‑quarter results that reflected improved operations amid continued lithium market headwinds. The company logged net sales of roughly US$1.31 billion, a slight year‑over‑year decline driven by lower energy storage pricing.
Albemarle generated US$356 million in quarterly cash from operations, noting the company remained on track to reduce full‑year capital expenditures to around US$600 million while targeting positive free cash flow of US$300 million to US$400 million in 2025.
Shares of Albemarle marked a year-to-date high of US$150.01 on December 26, amid strengthening lithium prices.
4. Lithium Americas (NYSE:LAC)
Year-to-date gain: 47 percent
Market cap: US$1.24 billion
Share price: US$4.41
US-focused Lithium Americas is developing its flagship Thacker lithium Pass project located in Humboldt County in northern Nevada. The project is a joint venture between Lithium Americas at 62 percent and General Motors (NYSE:GM) at 38 percent.
According to the company, Thacker Pass holds the “largest measured lithium reserve and resource in the world.”
In March, Lithium Americas secured a US$250 million investment from Orion Resource Partners to advance Phase 1 construction of the project, which is expected to fully cover development costs through the construction phase. On April 1, the joint venture partners made a final investment decision for the project, with completion targeted for late 2027.
Shares of Lithium Americas surged in late September, rising from US$3.07 to US$7.37 in three days. Its share price reached a 2025 high of US$10.05 on October 13.
Lithium Americas’ share price rose on news of renegotiation talks over its US$2.26 billion Department of Energy loan tied to the Thacker Pass project. According to media reports, the Trump administration was seeking up to a 10 percent equity stake as part of amendments to the loan’s repayment structure.
In response, Lithium Americas offered no-cost warrants for 5 to 10 percent of its shares and agreed to cover related administrative costs, while requesting changes to the amortization schedule without altering the loan’s term or interest.
An agreement was reached on October 1 and Lithium Americas received the first US$435 million installment of the loan on October 20.
The company ended the year by announcing it was being added to the S&P/TSX Composite Index (INDEXTSI:OSPTX).
5. Sigma Lithium (NASDAQ:SGML)
Year-to-date gain: 20.23 percent
Market cap: US$1.5 billion
Share price: US$13.49
Sigma Lithium is a Brazil-focused lithium producer supplying chemical-grade lithium concentrate to the global battery market. The company operates the Grota do Cirilo project in Minas Gerais, one of the world’s largest hard-rock lithium operations.
Sigma’s Greentech industrial lithium plant currently produces about 270,000 metric tons per year of lithium concentrate, equivalent to roughly 38,000 to 40,000 metric tons of LCE. The company is building a second processing plant that is expected to lift total capacity to approximately 520,000 metric tons of concentrate annually.
In September, Sigma Lithium’s flagship Grota do Cirilo operation in Brazil faced both regulatory scrutiny and operational disruption.
That month, Brazilian prosecutors requested a pause in operations after a technical review flagged shortcomings in the project’s Environmental Impact Assessment, citing potential water-management risks to the Piauí stream from planned open pits, a key water source for nearby communities, particularly during droughts.
While it denied issues with its EIA, Sigma paused mining to upgrade equipment and improve efficiency. The company phased down operations in September and shut the mine throughout October, leading to a sharp drop in output.
In mid-November, Sigma reported a strong Q3 2025, with net revenue rising 69 percent quarter-over-quarter and 36 percent year-over-year. The company generated US$24 million from final price settlements on sales completed by the end of Q3, with a further US$4 million in cash expected from additional settlements.
Sigma also expects to receive approximately US$33 million from the sale of 950,000 metric tons of lithium-bearing material that can be reprocessed by its customers, providing an additional near-term cash inflow.
Operationally, it said mining activities would restart by the end of November, with full ramp-up targeted for the first quarter of 2026. Because the company took over mining operations from its equipment contractor earlier in 2025, the restart is supported by upgraded equipment leased directly from manufacturers and operated in-house.
Sigma Lithium shares rose to a year-to-date high of US$14.50 on December 26.
Securities Disclosure: I, Georgia Williams, currently hold no direct investment interest in any company mentioned in this article.
