China, Australia, and Chile are now the top 3 lithium producers in the world, while Chile currently has the most lithium reserves. Only 2.5% of the world's total lithium deposits are located in Canada, which places us pretty low on the scale.

Despite having local headquarters, several of the Canadian companies on this list produce and conduct lithium exploration elsewhere. So, if you're thinking about investing in lithium companies, the low reserves in this area are not a problem.

Your cell phone, laptop, digital camera, electric car, and even items like pacemakers and clocks are just a few of the modern gadgets that require lithium. Rechargeable batteries will now be the use case for the majority of them. However, products like glass, ceramics, and even air conditioning employ lithium oxide and chloride.

What are the best lithium stocks in Canada to purchase, then?

Sigma Lithium (TSXV:SGML)

Another small-cap lithium exploration company on our list, Sigma Lithium, has not yet produced any revenue. Through its wholly-owned asset Grota do Cirilo Project, the business is now engaged in developing the biggest hard rock lithium resources in Brazil.

The project will ideally use only pure, renewable energy to power itself. So, if you're an investor who cares about the environment, Sigma could be a firm you want to research. The business revised its feasibility assessment with a potential increase in production capacity to 450,000 MT annually in mid-April. After that, its share price rose throughout the majority of April and the first few days of May, reaching a new year-to-date high of C$22.21 on May 4 before tumbling again.

Frontier Lithium (TSXV: FL)

Frontier Lithium is a pre-production company that aspires to produce lithium salts of battery grade. In reality, the company's key selling point for investors is that it would dominate the markets for batteries and electric vehicles. With a $670M market valuation, this firm is the smallest on the list. The firm is only getting started with its economic and environmental evaluations, and in 2023 it will start looking for final permits, metallurgical test work, and feasibility to build a mine 2023.

The emphasis of Frontier's news in 2022 has been exploration at PAK's Spark deposit, where the company on March 1 released an updated indicated resource of 14 million MT averaging 1.4 percent lithium oxide and an inferred resource of 18 million MT averaging 1.37 percent lithium oxide. Later that month, the business declared the success of its pilot plant campaign for mineral processing. Tony Zheng, Frontier's CFO, has since been a member of the executive team.

Lithium Americas Corp (TSE: LAC)

The current emphasis of Lithium Americas Corp, a mid-cap Canadian lithium company, is exploration. A pre-production startup called Frontier Lithium aims to make lithium salts battery- grade. The fact that the corporation would control the markets for batteries and electric automobiles is its main selling point for investors. This company is the smallest on the list, with a market worth of $670M. With its economic and environmental assessments, the company is only getting started. In 2023, it will begin seeking final licenses, metallurgical test work, and feasibility to establish a mine.

Ultra Lithium (TSXV: ULT)

Lithium and gold firm having projects and interests in Argentina, Canada, and the US is Ultra Lithium (previously Ultra Resources). The company's current priorities are its projects in Ontario, Canada, and Argentina. While its two lithium projects in Ontario, Georgia Lake, and Forgan Lake, are pegmatite deposits, its two lithium properties in Argentina, Laguna Verde I and II, are lithium brines.

The Laguna Verde project, which the firm fully owns and is due for completion in Q2 2022, has begun exploration drilling, and an exclusive strategic partnership agreement with Zangge Mining was signed, the company stated in February.

Standard Lithium (TSE: SLI.V)

Small-cap Canadian lithium stock Standard Lithium is still in the pre-revenue stages, similar to an exploration business. The Arkansas Lithium Project, which the business is actively exploring and developing, is its primary goal. In addition to being one of the largest lithium projects in the United States with 4.335 million tonnes of lithium carbon equivalent, the company's exposure in Arkansas is crucial since the state is a safe, affordable mining jurisdiction.

It is important to highlight that Arkansas exposes the business to more robust infrastructure development because there are existing roads, train systems, and other infrastructure in place there. Its Lanxess project is anticipated to produce more than 20,900 tonnes annually and have a 25-year project life.