Green Energy Stocks to Watch: Lithium, Wind and Hydrogen Plays

Another dramatic week for financial markets. A fragile ceasefire was announced last week, but simmering tensions along the Strait of Hormuz remain. While many were hoping for a complete ceasefire, the gulf between the two sides remains far apart. A deal is still elusive for the White House.

But the Iranian conflict has also revealed one fact: the world is still overly reliant on hydrocarbons. This fact, I suspect, will be gradually rectified. Investors are starting to bet on this secular trend lasting well beyond the Iranian conflict. Many green sectors are flashing buys. In this week’s analysis, I highlight wind and hydrogen investment plays.

But first, let’s review a few important market developments on the ground:

The energy sector took a hit as the Iranian conflict de-escalated. US WTI Oil submerged beneath $90 a barrel; while Jet Fuel price consolidates from its recent highs. The latter helped airline stocks to recover slightly. Crude oil is likely to have generated a peak of near-term significance.

Many stock barometers hit new long-term highs. S&P 500 extended its rally above February highs (new all-time highs), as did Nasdaq 100. The speed of the recovery here is impressive and suggests more upside potential should the ceasefire hold. Many stocks hit new 52-week highs.

Copper has rebounded back to the top of its range (around $6); while Aluminium, the strongest of the Industrial Metal complex, maintains its powerful uptrend. As copper recovers, does this mean that the global economy can cope with the recent oil spike? Possibly.

Bitcoin appears to have broken the progression of lower highs. The crypto asset edged up above its March highs to crack in an attempt to crack the base formation northside. This is a sign of rising risk appetite.

Alternative energy and commodity sectors extended their uptrends, particularly lithium-related stocks (see below).

 

Lithium stocks extend uptrend on shortage fears

A few weeks back, I showed readers the sharp recovery in lithium stocks. The curious development then was that lithium miners rebounded sharply despite falling Tesla (TSLA) shares.

The commodity sector has continued to surge. Last week, the Global X Battery/Lithium ETF (LIT) rallied to its highest level since 2022 as investors piled into lithium stocks. This relative strength is impressive and supports an upward extension to 90-100 (see below).

One of the biggest drivers of this rally is the gradual realisation that the sector may flip into a deficit this year. As a reminder, during 2022-2024, the entire lithium market was oversupplied. Ergo, lithium prices collapsed. Many miners slumped by 60-80% from their 2021 euphoric peaks.

But this era of abundance is largely over. Due to higher demand, tightness has returned to the market, and this is causing lithium prices to advance. If the deficit is larger than expected, expect a scramble for lithium shares like a rush into silver stocks last year.

Source: miningvisuals.com (March 2026)

$100 oil boosts FAN

Another green stock has caught my attention: Wind stocks.

A few years back, the sector was very popular due to the raging “zero-carbon” concept. Green economy stocks boomed, whether or not the underlying companies had a sustainable business model. Alas, no boom lasts forever. Once the buying fever subsided, the wind sector endured a multi-year bear market until March 2025.

From that low point, many wind stocks launched into a vigorous bull trend. The First Trust Wind ETF (FAN), for example, surged from 14 back to its 2021 highs. This ETF is a strong relative outperformer, and one of the first to break new year highs in April despite the uncertain market.

Stocks like Nordex (NDX1) and Enlight Renewable (ENLT) enjoyed superior bull runs that rivalled those hot tech stocks.

The question now is whether the sector is too hot to chase from here. For new positions, perhaps buying on a setback may generate better risk-reward ratios.

Hydrogen stocks making a comeback?

Another green sector that appears to be making a comeback is hydrogen.

Recall that the sector, like FAN, boomed during the pandemic. Decarbonisation pushed investors into alternative energies such as hydrogen. But the ensuing bear market (2022-2024) saw many hydrogen businesses struggle to gain traction.

Only in the last year or so did sentiment return to the industry. One of the first to recover is BE Bloom (BE). The stock, in tandem with many wind stocks, bottomed out last April and did a 10x rally (see below).

This excellent (and unexpected) rally is gradually pulling many other hydrogen stocks out of their doldrums. In the UK, ITM (ITM) and Ceres Power (CWR) have gained 5-8x from their 2025 lows.

At the fund level, the Global X Hydrogen (HYDR) may be worth a look if you intend to participate in the industry.

Given the rapid progression of technology, some fund providers are re-packaging these green stocks into “Climatech”. The Global X Climatech ETF (CTEC, factsheet is one such example (see below).