Why ASX 200 lithium shares are charging higher on Friday

ASX 200 lithium shares are on the rise again following bullish news for the electric vehicle industry overnight.
The post Why ASX 200 lithium shares are charging higher on Friday appeared first on The Motley Fool Australia. –

The S&P/ASX 200 (ASX: XJO) lithium shares are top performers on Friday following a solid session for the lithium sector overnight.

The largest ASX 200 lithium miners Galaxy Resources Limited (ASX: GXY)Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) are retesting all-time highs again, up 2.31%, 2.48% and 2.41% respectively.

Why ASX 200 lithium shares running higher

The broader lithium and renewables sector is a hot space right now with no shortage of positive news.

On Thursday, President Joe Biden signed an executive order with hopes of making at least half of all new vehicles sold in 2023 electric, according to Reuters.

“The 50% target, which is not legally binding, won the support of U.S. and foreign automakers, which said that achieving it would require billions of dollars in government funding.”

Reuters quoted statements from major US automakers, with General Motors commenting it “aspires to end sales of new U.S gasoline-powered light duty vehicles by 2035” and Ford saying it plans “at least 40% of our global vehicle volume being all-electric by 2030.”

Many ASX 200 lithium shares have been calling out global electric vehicle adoption as a catalyst to drive a lithium demand surge.

Galaxy’s capital raising presentation back in November cited that “global EV sales [are] forecast to grow as high as 30% CAGR in the next decade” and also anticipated “robust demand for lithium in the mid-long term.

More recently, Pilbara Minerals set up an auction for 10,000 dry metric tonnes (dmt) of lithium spodumene concentrate on its Battery Material Exchange platform.

The company said that it received 62 online bids ranging from US$700/dmt to US$1,250/dmt free on board (FOB) during the three-hour auction window.

Pilbara Minerals accepted the highest bid of US$1,250/dmt.

By comparison, Pilbara Minerals said that spodumene prices were fetching between US$700 to US$975/dmt back in June this year.

Encouragingly, Tesla Inc (NASDAQ: TSLA) reported more than 200,000 vehicle sales during its second quarter results last week. The figure represents a 121% year-on-year increase, helping the company surpass US$1 billion in net income for the first time on record.

The post Why ASX 200 lithium shares are charging higher on Friday 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

More reading

Pilbara Minerals (ASX:PLS) share price rallies 14% in just four days
Why the Vulcan (ASX:VUL) share price is running hot in August
Why the Pilbara Minerals (ASX:PLS) share price is up 15% this week
ASX 200 midday update: GUD results, Woodside update, ANZ appointment

Why the Galaxy Resources (ASX:GXY) share price hit a 52 week high

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 Tesla. 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!