ASX 200 lithium shares are at the right place at the right time.
The post These ASX 200 lithium shares have all surged more than 20% in a month appeared first on The Motley Fool Australia. –
From a year-to-date perspective, both Pilbara and Galaxy have just crossed the 100% return mark, while Orocobre is up about 85%.
So, what exactly is driving these ASX 200 lithium shares to record highs?
ASX 200 lithium shares surge on higher spot prices
The backbone for any commodity producer is the spot price.
In the case of lithium, Orocobre’s June quarterly results are a good example of just how far lithium prices have come.
In the June quarter, Orocobre was receiving US$8,476/tonne for its lithium carbonate, up 45% on the March quarter.
But it was just a year ago that the company was receiving US$3,913/tonne while its cost of sales was US$3,920.
Orocobre and other ASX 200 lithium shares have all experienced a huge jump in margins thanks to the recent rebound in lithium prices.
Big players want in on the lithium party
ASX 200 lithium shares aren’t the only ones hogging the hype around the lithium sector.
This investment will see Rio Tinto take the initial steps to bring its Jadar lithium-borates project online by 2026.
By 2029, Rio Tinto believes it could be one of the top ten lithium producers in the world.
Another positive headline for ASX 200 lithium shares
The lithium industry has been supported by a number of environmental goals amongst major economies to reduce emissions and produce renewable energy.
On Friday, Reuters reported another potential win for the lithium industry.
The White House is in discussions with US automakers on electric vehicle sales targets as part of the Biden administration’s proposed revisions to vehicle emissions standards.
According to Reuters, a voluntary target of at least 40% of new vehicle sales being electric by 2023 could be set as early as next week.
The post These ASX 200 lithium shares have all surged more than 20% in a month 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 May 24th 2021
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.