Lithium prices are up almost 500% over the past 12 months.
The post ASX lithium shares facing ‘insatiable’ demand amid global funding gap appeared first on The Motley Fool Australia. –
ASX lithium shares are charging higher today.
Both ASX lithium companies presented at the Diggers & Dealers Mining Forum in Kalgoorlie, Western Australia, this week.
As attendees heard, the long-term demand outlook for lithium â a lightweight, conductive metal critical in electric vehicle (EV) and home storage batteries â remains very strong amid rapid global growth in EV markets.
This, as the battery metals industry is looking at a US$42 billion funding shortfall to meet that soaring demand, according to Benchmark Mineral Intelligence.
Growing future deficits in lithium supply forecast
According to Pilbaraâs presentation at Diggers & Dealers, the expected deficit in lithium by 2040 is the equivalent to some 18 Pilgangooras. The ASX lithium share was referring to its Pilgangoora project, one of the largest hard rock lithium-tantalum deposits on Earth.
It said the forecast deficit comes âwith likely pricing implicationsâ.
Lithium prices have already leapt almost 500% since this time last year.
According to Pilbara Minerals CEO Dale Henderson (quoted by Bloomberg), âThe appetite is insatiable. Any producer in lithium is very popular at the moment.â
In its presentation, Liontown Resources pointed to research from global consulting firm Boston Consulting Group (BCG). BCG expects overall lithium demand growth of approximately 20% per year from 2020 through to 2035. This will be mostly driven by increased demand for EV and energy storage system (ESS) batteries.
LiontownÂ CEO Tony Ottaviano said (courtesy of Bloomberg):
I donât want us to come across as self-indulgent because we have immense respect for our customers, but the simple fact is it takes five to eight years to bring greenfield supply online in tier-one jurisdictions.
Ottaviano said that âinterest was lowâ when the ASX lithium share approached car makers and other manufacturers for its first offtake.
âRoll the clock forward and we are seeing a completely different commercial posture,â he added.
How have these two ASX lithium shares been performing?
Over the past 12 months, the Pilbara share price is up 42% while the Liontown share price has gained 74%. That compares to a full-year loss of 7% posted by the All Ordinaries IndexÂ (ASX: XAO).
Roll the clock back five years, and these ASX lithium shares have really shot the lights out.
If youâd invested in Pilbara five years ago, youâd be sitting on gains of 689%. As for Liontown, its shares have surged an eye-popping 14,550% in five years.
The post ASX lithium shares facing âinsatiableâ demand amid global funding gap appeared first on The Motley Fool Australia.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of July 7 2022
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
Here are the 3 most heavily traded ASX 200 shares on Thursday
Why are ASX lithium shares having such a top run on Wednesday?
Here are the 3 most heavily traded ASX 200 shares on Wednesday
Why BWP, Lynas, Pilbara Minerals, and Pinnacle shares are charging higher
Pilbara Minerals share price dips despite upbeat lithium outlook
Motley Fool contributor Bernd Struben 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 Scott Phillips.