What’s going on with ASX lithium shares today?

ASX lithium shares are in the red today.
The post What’s going on with ASX lithium shares today? appeared first on The Motley Fool Australia. –

After an extraordinary past few months, ASX lithium shares have opened to a sea of red on Friday.

The largest ASX-listed lithium player, Pilbara Minerals Ltd (ASX: PLS) is currently down 5.61% to $2.02. After a record open of $2.45 on 11 August, Pilbara shares have since tumbled 17.5%.

Similarly, established producers such as Orocobre Limited (ASX: ORE) and Mineral Resources Limited (ASX: MIN) are also selling off, down 4.03% and 2.90% respectively.

ASX lithium explorers are also red across the board, with names such as Piedmont Lithium Inc (ASX: PLL), Lake Resources N.L. (ASX: LKE) and Charger Metals NL (ASX: CHR) down 3.5%, 5% and 10% respectively.

Why are ASX lithium shares selling off?

ASX lithium shares have surged in recent months following a strong recovery in lithium spot prices and hype around increased electric vehicle adoption and renewable technologies.

However, according to The Motley Fool US, a report from Bank of America flagged underperform ratings for two of the biggest names in the lithium mining industry, Albemarle and Livent.

“The bank said both stocks are benefiting from “significant hype” regarding long-term demand for lithium metal, but according to the analyst, they may not be able to deliver on that hype.”

“The bank warns that lithium carbonate prices are starting to plateau as demand fades for batteries to power laptops for the work-from-home market and power tools.”

There were also concerns that as producers ramp up production, the lithium market could once again be faced with a surplus.

“Such a rapid increase in lithium supply threatens to overwhelm even rising lithium demand, and depress the stock prices of Albemarle and Livent”

Resources sector under pressure

The broader S&P/ASX Materials (INDEXASX: XMJ) index has tumbled 9.55% in the past 5 days, driven by steep losses from iron ore giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

Metals markets have tumbled in recent days, headlined by iron ore and copper sinking to a respective eight and six month low.

The weak performance of the resources sector and spot prices could be another aspect weighing on the sentiment of ASX lithium shares.

The post What’s going on with ASX lithium shares today? 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

More reading

Pilbara Minerals (ASX:PLS) share price is sinking, still up 140% this year
BHP (ASX:BHP) share price slides for 4th straight session, down 14% this week
Why the Mineral Resources (ASX:MIN) share price fell 15% this week
Why the Rio Tinto (ASX:RIO) share price plunged 6% today
Here are 3 of the heaviest trading ASX 200 shares this Thursday

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. owns shares of and has recommended Piedmont Lithium Inc. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!