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Jim Cramer Says Investors Should Eye These Two Lithium Stocks

Cristobal Olivares | Bloomberg | Getty Images
  • CNBC's Jim Cramer on Wednesday offered investors two lithium stocks he believes should be on their shopping lists.
  • "I'm only endorsing Albemarle and Livent for a trade. I like lithium here and I think these two have more upside because they've been kept down by the bad stock market," the "Mad Money" host said.

CNBC's Jim Cramer on Wednesday offered investors two lithium stocks he believes should be on their shopping lists.

"Lithium is everywhere, people – it just takes at least eighteen months to get production going, and that's about how long it's been since prices started soaring. We've already got these smaller players getting ready to come online later this year. … Of course, once more people get in, the business will get worse," the "Mad Money" host said.

"I'm only endorsing Albemarle and Livent for a trade. I like lithium here and I think these two have more upside because they've been kept down by the bad stock market, but you have to be ready and willing to ring the register on the way up, because this boom certainly won't last forever," he later added.

Cramer said that he likes the two stocks considering how resilient they've been, even as the market has been roiled by a series of economic and geopolitical factors in recent weeks including inflation, the Russia-Ukraine war, Covid lockdowns in China and more.

The Dow Jones Industrial Average tumbled 3.57% on Wednesday while the S&P 500 slid 4.04%. The Nasdaq Composite fell 4.73%. 

Shares of Albemarle dropped 1.36% while Livent stock decreased 2.13%.

Cramer also pointed out that both companies reported earnings beats in their latest quarters and raised their full-year forecasts. 

"If you want to play the sky-high price of lithium, I say don't overthink it. The easiest thing to do is buy Livent or Albemarle because we already know they're doing great, and despite these recent moves, the stocks aren't all that expensive based on the new earnings forecast," he said.

As for players in the lithium industry that investors should stay away from, Cramer said not to go near Standard Lithium, noting that it is "being bombarded" with short-selling.

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