I’m trying to find the perfect penny shares to purchase for my UK shares portfolio within the New Yr. Listed here are three on my watchlist.

A prime lithium inventory

Investing in lithium shares has appreciable long-term potential as electrical automobile (EV) adoption takes off. The silvery-white metallic is in fact a important element within the batteries that make them run.

Africa-focused Kodal Minerals (LSE:KOD) is one such inventory on my radar right now. It’s growing the Bougouni mine in Mali, which comprises a whopping 31.9m tonnes of lithium.

The corporate goals to finish development and begin manufacturing in 2024. And it’s totally funded to get the venture off the bottom following a $100m money injection final January from Hainan Mining. The deal, which noticed the Chinese language miner take a 51% stake within the venture, helps scale back threat for shareholders.

Constructive improvement information at Bougouni may carry Kodal’s share value via the roof. Although do not forget that dangerous information on this entrance would have the other impact. I’ll be paying shut consideration within the months forward.

Cyber star

Shopping for shares in Israel-based companies is a dangerous play right now because the geopolitical panorama deteriorates. Because of this I’m not planning to spend money on BATM Superior Communications (LSE:BVC) simply but.

However I’ll take into account including the corporate (which is headquartered close to Tel Aviv) to my portfolio if the scenario within the Center East cools. It supplies community and cyber safety companies in addition to biomedical options.

Certainly, I’m particularly enthusiastic about its BATM’s Networking and Cyber division because the digital revolution rolls on. An increase in state-sponsored cyber assaults, together with the growing use of synthetic intelligence (AI) for disruptive functions, also needs to enhance gross sales on the unit.

The penny inventory recorded $32m of cyber safety orders between June and December. I’m anticipating it to have one other huge yr in 2024.

House comforts

Constructing supplies suppliers like Michelmersh Brick Holdings (LSE:MBH) even have wonderful long-term funding potential. The nation’s housing inventory is the oldest in Europe and requires fixed updating. This supplies a gentle circulate of income from the restore, upkeep and enchancment (RMI) sector.

On the identical time, Britain might want to speed up development of latest houses to appease a housing scarcity and meet the wants of its rising inhabitants. So product demand from property builders additionally appears poised to soar over the subsequent decade.

However in the intervening time I’m not tempted to purchase Michelmersh shares. It warned in November that “contraction within the development trade has continued” and this will stay the case in 2024 because the UK financial system flatlines.

I’ll be keeping track of inflation information within the new yr although, alongside Financial institution of England commentary on future rates of interest. Indicators that charges might come down sharply might sign a time to purchase the brickmaker. This situation would doubtless see its share value submit extra spectacular positive aspects on hopes of a housing market turnaround.