Chinese-operated lithium mines are maintaining production despite weak prices that could trigger output cuts and benefit battery manufacturers. This continued production suggests potential years of oversupply and low prices. Some battery makers either own mines or have invested in them to keep operations running.
Miners also prioritize retaining market share, maintaining good government relations, and avoiding technical issues caused by shutting down and restarting operations. These factors are helping lithium mines stay operational, even amid market challenges, according to reports from companies, miners, consultants, and analysts. Some Indian stocks might benefit from low prices. However, Investors need to analyze the companies and understand their business before investing.
Listed below are some of the stocks that might benefit from low lithium prices.
Amara Raja Energy & Mobility
Amara Raja Energy & Mobility Limited, a part of the Amara Raja Group. It is a leading manufacturer of lead-acid batteries in India. They produce batteries for automotive and industrial applications while expanding into lithium-ion technology for electric vehicles. Their business model focuses on innovation, strategic partnerships, and a robust distribution network to meet domestic and international energy storage demands.
With a market capitalization of Rs. 24,029 Crores, the shares of Amara Raja Energy & Mobility Limited closed at Rs. 1,312.90 per equity share, up 0.27 percent from its previous day’s close price of Rs. 1,309.35.
Its Revenue from operations grew by 9.83 percent from Rs. 2,960 Crores in Q2FY24 to Rs. 3,251 Crores in Q2FY25, accompanied by profits of Rs. 238 Crores to Rs. 236 Crores.
Exide Industries
Exide Industries Limited, a leading manufacturer of lead-acid storage batteries, caters to the automotive and industrial sectors. They operate multiple manufacturing facilities across India and have expanded into lithium-ion battery production. Their business model focuses on innovation, extensive distribution networks, and strategic partnerships to meet domestic and international energy storage needs.
With a market capitalization of Rs. 39,822.50 Crores, the shares of Exide Industries Limited closed at Rs. 468.50 per equity share, up 0.72 percent from its previous day’s close price of Rs. 465.15.
Its Revenue from operations grew by 1.78 percent from Rs. 4,372 Crores in Q2FY24 to Rs. 4,450 Crores in Q2FY25, accompanied by profits of Rs. 270 Crores to Rs. 233 Crores.
Ola Electric Mobility
Ola Electric Mobility was founded in 2017 and is an Indian electric vehicle manufacturer focused on producing electric scooters and core components like battery packs and motors. Their business model focuses on vertical integration through in-house R&D, adaptable manufacturing, and a direct-to-consumer distribution network, aimed to accelerate sustainable transportation solutions in India and beyond.
With a market capitalization of Rs. 42,277.80 Crores, the shares of Ola Electric Mobility Limited closed at Rs. 95.85 per equity share, up 1.37 percent from its previous day’s close price of Rs. 94.55.
Its Revenue from operations grew by 39 percent from Rs. 873 Crores in Q2FY24 to Rs. 1,214 Crores in Q2FY25, accompanied by a loss of Rs. 524 Crores to Rs. 495 Crores.
Himadri Speciality Chemical
Himadri Speciality Chemical Limited is a leading manufacturer of carbon materials and chemicals in India. They focus on coal tar pitch and specialty carbon products. They operate multiple production facilities and serve diverse industries which include lithium-ion batteries and aluminum. Their business model focuses on innovation, sustainability, and expansion into new markets while maintaining a strong commitment to research and development.
With a market capitalization of Rs. 28,073 Crores, the shares of Himadri Speciality Chemical Limited closed at Rs. 568.65 per equity share, up 0.55 percent from its previous day’s close price of Rs. 565.55.
Its Revenue from operations grew by 13.13 percent from Rs. 1,005 Crores in Q2FY24 to Rs. 1,137 Crores in Q2FY25, accompanied by a profit of Rs. 101 Crores to Rs. 136 Crores.
PG Electroplast
PG Electroplast Ltd is a leading Indian manufacturer specializing in Original Equipment Manufacturing and Original Design Manufacturing which is primarily for consumer electronics and automotive sectors. Recently, PGEL expanded into the electric vehicle (EV) segment by targeting Rs. 500-600 crore in revenue from EVs and lithium-ion batteries through a partnership with Spiro Mobility.
With a market capitalization of Rs. 22,105.49 Crores, the shares of PG Electroplast Limited closed at Rs. 844.90 per equity share, down 0.54 percent from its previous day’s close price of Rs. 849.45.
Its Revenue from operations grew by 45.66 percent from Rs. 463.71 Crores in Q2FY24 to Rs. 675.44 Crores in Q2FY25, accompanied by a profit of Rs. 12.37 Crores to Rs. 19.33 Crores.
Written by Santhosh S
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