ASX lithium shares are rallying across the board today. Here’s why.

Lithium prices continue to boom on limited supply and high demand.
The post ASX lithium shares are rallying across the board today. Here’s why. appeared first on The Motley Fool Australia. –

The lithium sector is green across the board on Wednesday, with many ASX lithium shares marking fresh all-time record highs.

Lithium boom continues

Pilbara Minerals Ltd (ASX: PLS) is making headlines following the results of its second lithium spodumene concentrate digital auction.

The company said that it intends to accept the highest bid of US$2,240/dry metric tonne (spodumene concentrate 5.5%, free on board Port Hedland basis) for the intended 8,000/dmt cargo.

Just two months ago, Pilbara Minerals held its inaugural digital auction, with the highest bid coming in at US$1,250/dmt for a 10,000 dmt cargo of spodumene concentrate.

According to S&P Global, a China-based bidder said, “We started [bidding] at slightly over $1,100/dmt and we were expecting the price to hit a maximum of $2,000/mt. This [closing price] is a really crazy high one.”

With lithium prices rising rapidly in a short span of time, this could only mean good news for ASX lithium shares.

ASX lithium shares climb higher

Pilbara Minerals is leading the lithium sector on Thursday, jumping 9.73% to record highs of $2.48.

The Orocobre Ltd (ASX: ORE) share price is also basking in Pilbara Minerals’ success, adding 3.24% to $9.87.

Prospective explorers including Piedmont Lithium Inc (ASX: PLL), Liontown Resources Ltd (ASX: LTR) and Firefinch Ltd (ASX: FFX) are also pushing higher, up 3.31%, 3.39% and 3.76% respectively.

The Core Lithium Ltd (ASX: CXO) share price jumped the gun yesterday, rallying 27% on no news. It was pulled over by the ASX this morning in a price query.

In response, Core Lithium pointed to Pilbara Minerals’ auction results, saying:

Significantly, Core notes that yesterday, a spodumene concentrate cargo from another Australian producer sold for an approximate equivalent price of USD$2,500/dmt (SC6.0, CIF China). Core is the only Australia-focused, ASX-listed company forecast to join the ranks of new spodumene producers between now and the end of 2022.

It seems Pilbara Minerals’ auction results have added more fuel to the already booming industry and driving buying activity across ASX lithium shares on Thursday.

The post ASX lithium shares are rallying across the board today. Here’s why. appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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