It's very hard to analyze these companies. They're pre-revenue, and almost purely speculative. The one thing that amplifies the risks with American Lithium is the fact that nearly no analysts cover it either. As of right now, looks to be one that is covering the company.
The company has some potential. Solid projects and long mine lives. However an investment right now is simply pure speculation. These companies don't trade on much of a basis, because they have no revenue generation, historical performance etc. Because they don't generate any revenue, they are also prone to cash burn, which will result in share offerings. In fact, I believe the company just went through one.
There is no doubt the Lithium sector has been on an absolute tear. But, most of it is based on a lot of things going right in the future. All I would say, is an investment in one of these pre-revenue lithium companies should be done with a very small amount of your total capital, and capital you'd be more than comfortable losing.
Is there gains to be had? Absolutely. But there is significant risks.