5 Fastest Growing Lithium Stocks to Watch

Over the past few years, China has enjoyed a lithium gold rush.

The country is way ahead of other nations when it comes to lithium ecosystem. More than half of lithium, cobalt, and graphite processing and refining capacity is located in China.

Being dependant on Chinese exports is also not a long-term solution for other countries like India. Hence, we have been looking for lithium reserves all across the world.

In July 2023, the Indian government approved amendments to the Mines and Minerals (Development and Regulation) Act, 1957, allowing for the mining of lithium.

Several other key reforms have also been announced. With the growing demand for lithium, the trend of indigenous lithium mining in India is here to stay.

In this editorial, we look at lithium companies that are capitalising on this growth opportunity. Here are 5 fastest growing lithium stocks to watch out.

#1 Adani Enterprises

First on the list is Adani Enterprises.

Adani Enterprises is the flagship company of the Adani Group. It acts as a business incubator within the group, focusing on building diverse, emerging infrastructure businesses and subsequently spinning them off into separate listed entities.

It's diversified portfolio is broadly split into energy & utilities, transport & logistics and emerging businesses. Now, the company is getting into lithium mining too.

Back in 2024 when the government was auctioning mining activities, the Adani group company also eyed lithium mining rights. The company is exploring lithium reserves and investing in EV battery technologies.

Adani Enterprises recently also announced its entry into the battery energy storage system (BESS) market, which is a supplement to the lithium story.

Coming to its financials, the company's sales and net profit have grown at a compounded annual growth rate (CAGR) of 12% and 150% in the past 3 years.

In the most recent Q2FY26, Adani Enterprises reported revenues of Rs 212,490 million (m) while profit climbed to Rs 34,140 m from Rs 19,890 reported last year in the same quarter.

Going forward, Adani Enterprises is positioned to scale its operations through subsidiaries substantially, with major infrastructure projects, ambitious growth in airport, alongside advancing in emerging sectors like green hydrogen, lithium mining and BESS.

#2 Hindustan Zinc

Next on the list is Hindustan Zinc.

Hindustan Zinc (HZL) is India's leading zinc-lead producer and a heavyweight in the global metal space. Beyond its core business, the company is making a shift to critical minerals. It's the world's largest integrated zinc producer and is among the top 5 silver producers globally.

It has emerged as one of the key private players to win bids in the government's fifth tranche of critical mineral auctions, which, for the first time, included blocks of potash, tungsten, and rare earth elements.

The company successfully secured a rare earth monzonite block, a non-radioactive deposit distinct from the bit-sand monazite typically mined by Indian Rare Earths.

This positions the company as a first mover in India's private rare earth exploration space-especially for lithium and neodymium, essential components for permanent magnets used in EVs and renewable energy systems.

Further, Hindustan Zinc is exploring partnerships across AI and drone-based exploration technologies, collaborating with international experts from Australia, South Africa, Chile, and China to enhance efficiency and discovery.

Coming to its financials, Hindustan Zinc's sales and net profit have grown at a CAGR of 5% and 3%, respectively over the past 3 years.

In Q2FY26, sales registered a double-digit growth while profit reached Rs 26.3 bn.

With India's push to build a self-reliant rare earth magnet ecosystem, Hindustan Zinc stands out as a stock to watch, backed by its early move into developing domestic sources of neodymium-a crucial element used in high-performance permanent magnets.

#3 NALCO

Third on the list is Nalco.

The company, known for aluminium production, is diversifying into critical minerals and lithium through both domestic exploration and overseas ventures.

As part of a joint venture called Khanij Bidesh India (KABIL), it has acquired five lithium mines in Argentina and is conducting detailed exploration to assess commercial viability.

Nalco is also exploring the possibilities of investing in lithium refining operations in Australia and is looking at acquiring exploration rights for critical mineral blocks in India when auctions occur.

It's also working on extracting gallium, another critical mineral, with plans for commercial production within two years.

Media reports indicate that Nalco is setting up a prototype facility at its Damanjodi refinery, which is expected to be ready in 8-9 months, followed by a year of testing, before commencing production. This will make Nalco the first company in India to manufacture gallium commercially by 2027.

It's building a presence in lithium and gallium that are vital to the rare earth magnet value chain.

Coming to its financials, Nalco's sales and net profit have grown at a CAGR of 6% and 21% over the past 3 years.

In Q2FY26, Nalco delivered its best-ever results and best ever H1FY26 performance, with higher volumes, expanding margins and a large capex cycle about to unfold from FY27.

The company's standalone ROE in FY25 was 32.3%. It carries no debt, sits on nearly Rs 80 bn of cash (as of September 2025) and can fully fund its expansion pipeline.

Going forward, the company is banking on its massive expansion to support future growth. Nalco's alumina refinery expansion is now 80% complete. Once the expansion is done, it will add around 500,000 tonnes of alumina in FY27.

Further, its aluminium smelter, backed by a 1,080 MW (megawatts) captive power plant is also on track, targeted to be completed by 2030. This marks the start of a new multi-year scale-up in metal capacity.

Together, these projects represent nearly Rs 300 billion (bn) of capex. Nalco will raise some debt to fund the smelter and power plant.

Overall, the company's earnings is set to expand meaningfully once the cycle turns up.

#4 Amara Raja Energy & Mobility

Next on the list is Amara Raja Energy & Mobility.

The company is a leading manufacturer of lead-acid batteries for automotive and industrial applications. Amara Raja Energy is venturing into advanced technologies by establishing a large-scale lithium-ion cell manufacturing Gigafactory in Telangana.

This ambitious project is designed to deliver substantial production capacity over time. The facility's first phase is scheduled to begin operations in 2027, marking a significant milestone in the company's strategy to emerge as India's foremost manufacturer of lithium-ion batteries.

Coming to its financials, the company posted consolidated sales of Rs 33,880 m in Q2FY26, marking a growth compared to last year while profit also inched higher to 3 bn.

In the past 5 years, Amara Raja's sales and net profit have grown at a CAGR of 14% and 22%, respectively.

Going forward, the company's strategic transition into lithium-ion battery technology and electric mobility solutions are expected to support growth. The company has outlined a massive investment of Rs 95 bn over the next 10 years.

Several capacities are expected to be commissioned in FY26, which will boost revenues. A 1.5 GWh battery pack capacity is fully operational, catering to the 2W and 3W segments.

Apart from clean energy, it is also diversifying into the lubricants market, domestic solar power, and lithium-based home UPS products.

#5 GMDC

Last on the list is GMDC.

GMDC is India's leading merchant seller and the second-largest producer of lignite.

It is known for its lignite mining operations in Gujarat, which meet the state's energy needs.

GMDC's portfolio includes lithium, lignite, light rare earth oxides, such as neodymium and Praseodymium, all of which are integral to making the strongest magnets. These permanent magnets are critical for motors in EVs and wind turbines.

Now, it's expanding to become a multi-mineral enterprise, with fourfold revenue growth under Project Shikhar. Overall, the company plans to achieve a revenue of about Rs 145 bn by 2030.

To achieve this, GMDC is operationalising six new lignite mines in Kutch and South Gujarat, which collectively add about 483 MMT of reserves.

These new mines are primarily long gestation projects, with volumes expected to begin contributing from FY27 onwards. With these mines, it plans to produce 15 MMT of lignite by the end of this decade.

GMDC has also entered coal mining in Odisha, marking a key step in diversifying its resource base. It acquired 3 major coal mines, Baitarani, Burapahar and Kudanali-Lubari, with total coal resources of 2,000 MMT.

Coming to its financials, GMDC's sales and net profit have grown at a CAGR of 2% and 16, in the past 3 years.

In FY26 so far, GMDC's growth has remained muted. In Q1, its revenue declined 10.4% YoY to Rs 7.3 bn, while PAT declined 10.9% to Rs 1.6 bn.

The company is targeting a volume growth of 10% to 15% in its existing lignite business for the current year, driven by its four operational mines.

The Government of India recently increased its investment plan for rare earth development at GMDC to Rs 50 bn, from Rs 12.5 bn. This will support GMDC's growth in the future.

Should you invest in lithium stocks?

Lithium mining is a megatrend you should track in 2026 because it has the potential to transform India's energy and economic landscape and create new opportunities for investors and businesses.

However, India currently lacks the capacity and infrastructure to produce lithium products at scale and relies on imports from China and other countries.

The government has streamlined the mining license process for lithium, reducing bureaucratic hurdles and expediting project approvals. This creates a more investor-friendly environment and encourages rapid development.

Tax breaks and royalty exemptions are being offered to lithium mining companies, making domestic extraction financially attractive and boosting long-term sustainability.

The government is pushing for environmentally responsible mining practices, with strict regulations and monitoring to ensure minimal ecological impact.

This is where the opportunity lies for investors and businesses, that can invest in lithium extraction, refining, and manufacturing, and create a sustainable lithium industry in India.

By doing so, they can also leverage India's advantages, such as its large and skilled workforce, strong research and development capabilities, favourable policies and incentives, strategic location, and access to markets.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy Investing.

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