The Smartest Canadian Stock to Buy With $1,000 Right Now

If there is one material that investors will want to invest in for the long term, it’s certainly lithium.

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When it comes to long-term investing, timing can make a big difference, especially when it comes to high-growth industries like clean energy. Right now, with just $1,000, investors can tap into a Canadian stock that’s positioned in one of the most important sectors of the next few decades: lithium. That stock is Lithium Americas (TSX:LAC). It may not be a household name yet, but the work it’s doing behind the scenes could power not just vehicles, but also portfolios, for years to come.

The stock

Lithium is a critical component of the batteries used in electric vehicles (EV) and large-scale energy storage. Demand for it has grown rapidly as the world transitions to a greener economy. Yet, despite the urgency behind this shift, supply remains relatively tight, especially in North America. That’s where Lithium Americas comes in. Its Thacker Pass project in Nevada is one of the largest known lithium resources in the U.S. and may prove to be a game-changer, not just for the company, but for the entire North American battery supply chain.

Construction officially began on Thacker Pass in early 2025, a major step forward in the project’s long timeline. It has been a long time coming. The deposit has been in development for over a decade, but only recently received the financing and environmental approvals necessary to move into full construction. Lithium Americas expects the project to enter production in the second half of 2026. When it does, it’s projected to produce 40,000 tonnes of lithium carbonate annually, a significant chunk of the supply that battery makers will need.

To fund all of this, Lithium Americas has not only attracted attention, it has secured some serious capital. In April 2025, the company closed a US$250 million strategic investment from Orion Resource Partners, one of the largest private investment firms in the mining space. This financing gave Lithium Americas the capital it needed to declare Phase 1 of Thacker Pass fully funded. And that’s a big deal. It removes one of the biggest uncertainties hanging over the stock and gives the company room to focus on execution.

Staying strong

On the financial side, Lithium Americas reported its first quarter 2025 results in early May. It had cash and restricted cash totalling US$446.9 million as of March 31, 2025. In that quarter alone, it invested US$78.2 million in construction and project development costs at Thacker Pass. Still, the stock hasn’t exactly lit up the market. As of writing, it trades around $4, down significantly from its 52-week high of $7.30. But that pullback could be an opportunity.

And there’s another reason this stock makes sense now: political support. The U.S. government has identified domestic lithium production as a national priority. In 2023, the Department of Energy offered a conditional loan of US$2.3 billion to help finance the construction of Thacker Pass. The Biden administration’s Inflation Reduction Act also included substantial incentives for sourcing battery materials domestically or from allies like Canada. Lithium Americas is now streamlined and solely focused on North America. That makes it a prime candidate to benefit from policy tailwinds on both sides of the border.

Bottom line

For Canadian investors looking to take advantage of this shift, Lithium Americas offers a pure play on domestic lithium production. It’s higher risk, no question, but the potential rewards match that. The world needs more lithium, especially in North America. Lithium Americas has one of the few shovel-ready projects on the continent. It’s fully funded, under construction, and backed by both private investors and government partners.

With $1,000, this stock gives investors a seat at the table for what could be one of the most important energy buildouts of our generation. It’s not a quick win. It’s a bet on the future. But if you’re looking for a smart way to invest in the next wave of green energy infrastructure, Lithium Americas might just be the Canadian stock to buy right now and hold for the long run.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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