Morningstar says Australia’s lithium stocks are now just too cheap for investors to ignore and has called out Mineral Resources and IGO as ones “materially undervalued” by the market.

The bold call comes despite lithium carbonate prices trading at multi-year lows of around $US10,500 a tonne and as Mineral Resources battles to restore investor confidence after a tax avoidance scandal engulfed its billionaire founder Chris Ellison.