Lithium spot prices have hit another new mark this week. But how has this affected ASX shares?
The post ASX lithium shares mixed on Tuesday as prices surge to all-time highs appeared first on The Motley Fool Australia. –
There seems to be no shortage of bullish news for ASX lithium shares with spot prices continuing to mark fresh all-time highs.
Battery-grade lithium carbonate prices hit 190,000 yuan/metric tonne (mt) on 15 October. This surpasses the previous high of around 160,000 yuan/mt just two weeks ago.
What’s driving lithium prices?
S&P Global Platts reported that market sources attributed the sustained price increase to “tight supplies exacerbated by the ongoing power restrictions in China, as well as bullish downstream demand from the new electric vehicle sector”.
One of China’s largest lithium producers, Ganfeng Lithium, is passing on the rising costs of production to customers. It has announced a 10% increase in lithium prices or 10,000 yuan/mt from 10 October to 9 November.
A China-based battery maker said, “although a very small number of our productions are completely shut down, a part of our battery orders will be postponed to Q1 next year.”
How are ASX lithium shares performing on Tuesday?
Emerging producers and explorers are running well ahead of large-cap players.
Despite a relatively flat performance on Tuesday, Pilbara Minerals and Orocobre have both bounced 10-15% in the last two weeks.
The speculative end of town is rife with winners.
Coined “Australia’s next lithium producer”, the Core Lithium Ltd (ASX: CXO) share price is surging. It’s up 10% to 60.5 cents and around 47% in the last month.
Emerging lithium producer Ioneer Ltd (ASX: INR) is rallying 7.36% to 69.25 cents.
Small-cap lithium technologies company Lithium Australia NL (ASX: LIT) is up 8.7% to 12.5 cents. This comes after it announced today one of its subsidiaries is expanding its battery manufacturing capabilities.
The post ASX lithium shares mixed on Tuesday as prices surge to all-time highs appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
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 more than eight 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.
*Returns as of August 16th 2021
Motley Fool contributor Kerry Sun owns shares of Ioneer Limited. 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.