With the decarbonisation and advent of clean energy, Lithium is massively growing today! Today, we are going to look at the best lithium stocks ASX to buy in 2022. These lithium stocks are expected to grow 9-fold by 2030. This is why they are said to be one of the hottest sectors on the ASX right now. The stock tends to be an infant in this stage, but most of the mines are undertaking more production.

Why are Australian Lithium Stocks hard to Forecast?

Undoubtedly stocks have higher risk and are priced at a higher multiple, but they have the potential to leverage the clean energy industry. Exposure to the best lithium stocks on ASX enhances your profile as the world moves towards further decarbonisation. The stocks are firstly driven on a short-term basis when demand imbalances. Order flows on a daily basis as soon as investors buy or sell shares for different reasons. This flow requires strong technical analysis and understanding of the market at that time. The reason is that most lithium miners and producers are still in the ramp-up stage. Hence, with the investment mandates and general lack of liquidity, institutional investors don't rely on them!

Secondly, markets and stocks are impacted by macroeconomic forces. For example, the best lithium stocks on ASX are usually driven more by rumors and retail investors. Of course, the lack of liquidity is also a cause, but there are more aspects like changes in interest rates, consumer sentiment, government policies, and so on.

Invest Potentially Under Financial Guidance

Fundamentals should be highly considered as investors make assumptions and valuations based on the environment that will be operating in the future. MF & Co Asset Management understands the market fluctuations of the best lithium stocks on ASX and provides an expert opinion based on analysis. Browse our official website to know more about the process!

Note: This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.