Here’s what might have driven the Lake Resources share price higher today.
The post Why the Lake Resources (ASX:LKE) share price surged 10% on Tuesday appeared first on The Motley Fool Australia. –
The Lake Resources N.L. (ASX: LKE) share price took off today despite silence from the company.
As of Tuesday’s close, the Lake Resources share price is 97.5 cents, 10.17% higher than it was at the end of Monday’s session.
However, it wasn’t alone in its gains. As The Motley Fool Australia reported earlier today, many ASX lithium shares surged higher on Tuesday.
ASX lithium giant, Plibara Minerals Ltd (ASX: PLS) saw its share price gain 8.1% over the course of Tuesday. Meanwhile, that of AVZ Minerals Ltd (ASX: AVZ) and Liontown Resources Limited (ASX: LTR) shot up 10.9% and 5.5% respectively.
Let’s take a look at what might have boosted the lithium exploration company’s stock higher.
What may have driven the Lake Resources share price today?
The Lake Resources share price might have caught a wave born of soaring lithium prices on Tuesday.
S&P Global reported that domestic Chinese lithium carbonate and hydroxide prices hit another record high last week amid “nervous energy” in the market. A source told the publication that buyers were trying to get their hands on lithium before prices soared again.
Such anticipation of another lithium run might be evidenced by the Global X Lithium & Battery Tech ETF‘s (NYSEARCA: LIT) recent movements. The exchange-traded fund (EFT) surged to a new record high last night.
Additionally, the Australian Government released its Long-Term Emissions Reduction Plan today. It’s expected to see Australia reach net zero emissions by 2050.
It has a heavy focus on an existing strategy: The Technology Investment Roadmap. The roadmap’s first low emissions technology statement prioritises 5 technologies, one of which is energy storage.
A media release from Prime Minster Scott Morrison and Minister for Industry, Energy, and Emissions Reduction Angus Taylor stated that the government’s existing $20 billion investment in low emissions technology should unlock at least $80 billion of private and public investment.
The news may have bolstered excitement over ASX lithium shares, as it might be assumed, a technology-focused strategy could call for a lot of battery minerals.
The post Why the Lake Resources (ASX:LKE) share price surged 10% on Tuesday appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper 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.