The green energy boom is upon us, and lithium plays a crucial role. It’s critical in producing batteries, powering electric vehicles (EVs), and other clean technologies. The only problem is that its demand significantly outweighs its supply, which is unlikely to balance out any time soon. Therefore, gaining exposure to the market through investments in lithium stocks is a wise move.

Lithium demand is expected to explode with the proliferation of demand for EVs. In fact, EV sales are expected to increase by double-digit margins by 2025, which will only exacerbate the already tight lithium market. While the road ahead may be bumpy, it’s clear that the demand for lithium is here to stay.

The demand for lithium is expected to increase by 300% by 2030. Its growth presents an incredible opportunity for lithium miners, who will likely capitalize on the increasing demand for the metal. That said, here are seven of the top lithium stocks to invest in to ride the sector tailwinds.

Best Lithium Stocks: Lithium Americas (LAC)

Founded in 1998, Lithium Americas (NYSE:LAC) is a leading global producer of lithium. The company operates two major lithium mines, the Cauchari-Olaroz operation in Argentina and the Thacker Pass operation in Nevada. It recently announced it was splitting its company into two. The first company will oversee operations in Argentina, including the near-production of its Cauchari-Olaroz project. The other will focus on the Thacker Pass lithium project and the firm’s North American investments.

LAC is quickly moving towards commercializing Thacker Pass and has received multiple state-level permits needed for the commencement of construction. Moreover, development on Caucharí-Olaroz is also moving impressively, with Stage 1 operations expected to produce 40,000 tonnes annually by the end of next year. Therefore, LAC remains an incredible investment to ride the tailwinds in the lithium space.

Global X Lithium & Battery Tech ETF (LIT)

When it comes to investing in the hottest sectors, exchange-traded funds (ETFs) offer a great way to get exposure to a wide variety of stocks at a lower cost than buying individual shares. One of the top ETFs in the lithium space is the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT).

This fund provides exposure to lithium miners, developers, battery manufacturers, EV companies, and other related businesses that offer immense upside potential in the future. Some of the stocks it offers exposure to include BYD (OTCMKTS:BYDDY), Tesla (NASDAQ:TSLA), and Quantumscape (NYSE:QS).

Not only does LIT offer diversification, but it does so at a remarkably low cost. Its expense ratio is just 0.75%, handling over $4.3 million in assets. Hence, this ETF is worth considering if you’re looking for a way to get exposure to the lithium sector.

Best Lithium Stocks: Standard Lithium (SLI)

Standard Lithium (NYSEAMERICAN:SLI) is a Canadian-based company specializing in developing lithium extraction technologies. The company’s proprietary “brine-processing” technology enables it to produce lithium at a lower cost than traditional methods. This makes Standard Lithium a hot investing opportunity at current prices.

The stock has been rallying of late with the United States Patent and Trademark Office green-lighting the firm’s first two patent applications in the U.S. It will enable the company to advance its first lithium extraction project. Moreover, it is working on a 150,000-acre joint venture with Lanxess (OTCMKTS:LNXSF) in Arkansas. According to the management, The region is home to the continent’s “largest fairway with over five decades of commercial production, significant infrastructure, abundant, low-cost electricity, and access to chemical reagents and water sources.”

Albemarle (ALB)

The lithium boom has been a boon for mining companies such as Albemarle (NYSE:ALB). The demand for lithium has skyrocketed in recent years and Albemarle is well-positioned to take advantage of this demand, with its projects spread out across various countries, including the U.S., Chile, China, Japan, Brazil, Taiwan, and Australia.

ALB is arguably one of the best companies in its niche from a fundamentals perspective. Its revenues and earnings have shot to the moon this year, growing 68.8% and 182.5%, respectively. Its excellent margin profile will make the firm cash flow positive this year. On top of that, it has recently layered that up with a quarterly dividend of roughly 40 cents per share. Hence, Albemarle is making a smart bet on the future, and investors are sure to reap the rewards.

Best Lithium Stocks: Piedmont Lithium (PLL)

Piedmont Lithium (NASDAQ:PLL) is an exploration-stage Australian mining company involved in exploring and developing resource projects primarily in the U.S. It boasts a strong presence in the United States, with projects in North Carolina, Quebec, and Ghana. Piedmont’s North Carolina project is located in the world-renowned Carolina Tin Spodumene Belt, referred to as the “cradle of the lithium industry.”

As the EV industry continues to grow, Piedmont Lithium is well-positioned to become a leading supplier of lithium. The project positions it to be one of the world’s lowest-cost producers of lithium hydroxide, serving the needs of the U.S. EV market for years to come. Additionally, the firm was also selected for a massive $141.7 million grant by the U.S. Department of Energy as part of President Joe Biden’s Bipartisan Infrastructure Law.

Livent (LTHM)

Livent (NYSE:LTHM) is a global leader in the production of lithium compounds and has a long history of innovation in the field. It operates over 15 manufacturing facilities worldwide, with its largest facility in North Carolina. Moreover, it boasts an incredible presence in Argentina and is looking to scale up production at a massive scale from the region in 2023.

It has lofty plans to increase capacity over the next several years, expecting to take production from 20,000 metric tonnes per year to 100,000 metric tonnes per year by the end of the decade. Meanwhile, it continues to turn heads with its stellar results. In the past five years, it has delivered revenue and EBITDA growth of roughly 13% and 74% on average. Spurred by the robust lithium demand this year, its operating cash flow growth has grown by a whopping 585%. Hence, it remains in an excellent position to expand its capacity and grow its revenue base for the foreseeable future.

Best Lithium Stocks: Ganfeng (GNENF)

Ganfeng (OTCMKTS:GNENF) is the largest lithium miner in China and among the top three juggernauts in the sector. It boasts mineral sources in China, Australia, Argentina, and Mexico ensuring a secure supply of raw materials. In addition, Ganfeng is involved in every link of the lithium supply chain, from resource development to recycling. This diversification gives Ganfeng a significant competitive advantage in securing raw materials for EV batteries.

Given the expected growth in EV sales over the next several years, GNENF stock is poised for hefty gains. Its business has been booming of late, with revenues growing by a triple-digit margin. Moreover, with the strength in lithium prices this year, it grew its EBITA by over 450% on a year-over-year basis.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.