Bell Potter names the ASX lithium stocks to buy

If you are looking for exposure to the lithium industry, then it could be worth listening to what Bell Potter is saying about a number of stocks.

Here are a few that it currently rates as buys:

Delta Lithium Ltd (ASX: DLI)

Bell Potter is bullish on this small-cap ASX lithium stock and has a speculative buy rating and 41 cents price target on its shares.

Commenting on the lithium developer, the broker said:

DLI’s core assets provide exposure to essential minerals including lithium, tantalum and rubidium; its 41% shareholding in advanced gold explorer Ballard Mining (BM1, Speculative Buy, Valuation $1.05/sh) adds material gold price leverage.

Our DLI valuation is based on conservative EV/Resource multiples at Mt Ida and Yinnetharra and a market value of DLI’s BM1 shareholding. If we incorporate our BM1 valuation, our DLI valuation would lift to $0.47/sh. DLI is an asset development company with prospective operations and cash flows. Our Speculative risk rating recognises this higher level of risk and volatility of returns.

Ioneer Ltd (ASX: INR)

Another ASX lithium stock that gets the speculative thumbs up is Ioneer. The broker is feeling very upbeat on the US-based Rhyolite Ridge project, especially given the government support it has received.

Bell Potter has a speculative buy rating and 46 cents price target on its shares. It said:

INR’s Rhyolite Ridge sell-down process should de-risk the project’s equity funding requirements. We expect the USA DoE to remain supportive; Lithium America’s (NYSE:LAC, not rated) recent US$2.3b DoE Thacker Pass (also in Nevada) debt support is a positive analogue. INR’s Rhyolite Ridge project is strategic because of its US location, large scale, low cost, boric acid co-product and expansion potential. INR is an asset development company with forecast cash flows only; our Speculative risk rating recognises this higher level of investment risk and share price volatility.

Liontown Ltd (ASX: LTR)

Lithium miner Liontown has been given a buy rating and $2.48 price target. The broker likes the company due to its Kathleen Valley Lithium Project, which it notes is highly strategic. Commenting on the ASX lithium stock, it said:

LTR’s 100% owned Kathleen Valley lithium project is highly strategic in terms of scale, long project life and location in a tier-one mining jurisdiction. LTR has offtake contracts with top-tier EV and battery OEMs. Over FY26, LTR will de-risk the ramp up of Kathleen Valley. LTR has a strong balance sheet with long tenor debt finance.

Vulcan Energy Resources Ltd (ASX: VUL)

A final ASX lithium stock that is rated highly by Bell Potter is Vulcan Energy. It has a speculative buy rating and $6.10 price target on the lithium developer’s shares.

Bell Potter believes Vulcan Energy could be highly profitable when its Lionheart Lithium Project is operating at full capacity. It said:

VUL’s Lionheart Lithium Project location (Germany), near-term production and novel technology, position VUL to benefit as lithium markets rebalance over the medium term. On our lithium price outlook (long term LH US$20,000/t), average annual EBITDA is €290m (real).

The post Bell Potter names the ASX lithium stocks to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.