Insights

Why the Lithium Australia (ASX:LIT) share price is up 8% today

This lithium share is rising today…
The post Why the Lithium Australia (ASX:LIT) share price is up 8% today appeared first on The Motley Fool Australia. –

The Lithium Australia NL (ASX: LIT) share price is on course to end the week on a positive note.

At the time of writing, the lithium extraction technology company’s shares are up 8% to 13.5 cents.

Why is the Lithium Australia share price climbing today?

The Lithium Australia share price is rising today after the release of an apparently price sensitive announcement.

It is worth noting that the ASX has only recently pulled the company up on an announcement for suspected “ramping”.

The ASX commented that ramping involves the release of “an announcement that has no substance but seeks to ride on the back of strong market sentiment in a particular sector.”

What was today’s announcement?

According to the release, in case you hadn’t noticed, lithium prices are rising strongly. It highlights that Pilbara Minerals Ltd (ASX: PLS) commanded US$2,500 per tonne for its lithium concentrate via its Battery Material Exchange digital auction this week.

In addition, the company notes that the popularity of cobalt-free batteries continues to grow and its subsidiary VSPC is still progressing its plans to establish a strategic position in the market for cobalt- and nickel-free lithium-ion batteries (LIBs).

Management claims that cobalt and nickel-free LIBs are safer, longer-lasting, and require less raw materials. As a result, with lithium prices sky-rocketing, demand for their use in electric vehicles and stationary energy storage is rising.

Lithium Australia’s Managing Director, Adrian Griffin, commented: “To develop renewable energy security, Australia requires a domestic battery supply chain. Pragmatic political policies and government support are a step in the right direction and the Modern Manufacturing Initiative – Collaboration Stream grants will hopefully provide some of that support.”

“The shortage of nickel- and cobalt-free cathode materials outside China is of great concern; however, the possibility of producing such material here in Australia has garnered enthusiastic support – from local miners right through to international battery producers. This country needs to act now, building on its resource base and developing the value-add that can position Australia as a leader in the new energy revolution,” he added.

The Lithium Australia share price has more than doubled in value this year.

The post Why the Lithium Australia (ASX:LIT) share price is up 8% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lithium Australia right now?

Before you consider Lithium Australia, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lithium Australia wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Zoom2u (ASX:Z2U) share price has soared 267% in a week
To buy, hold or sell? Experts weigh in on the Webjet (ASX:WEB) share price
Is the Telstra (ASX:TLS) share price in the buy zone after its T25 update?
How has the Zip (ASX:Z1P) share price performed since reporting results?
2 top small cap ASX shares analysts rate as buys

Motley Fool contributor James Mickleboro 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.

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!