The Lake Resources N.L. (ASX: LKE) share price is ending the week on a very positive note.
In morning trade, the lithium developer’s shares have jumped 16% to a new record high of $2.31.
Why is the Lake Resources share price racing higher?
The Lake Resources share price is storming higher today despite there being no news out of the company.
However, there has been some very positive industry news that could be getting investors excited.
This morning lithium giant Allkem Ltd (ASX: AKE) released a lithium carbonate and spodumene concentrate pricing update.
That update reveals that strong market conditions continue to positively impact the price received for Allkem’s lithium carbonate from the Olaroz Lithium Facility. For the June quarter, the average price received for lithium carbonate is expected to be approximately US$35,000 per tonne FOB.
This is up from US$27,236 per tonne during the March quarter and is more than tripled the US$11,095 per tonne commanded during the first half.
It is a similarly story for spodumene, with advanced discussions for spodumene concentrate pricing in the June quarter of approximately US$5,000 per tonne. This is more than double the US$2,218 per tonne received during the March quarter.
All in all, this paints a very positive picture for the industry right now. Though, it is worth remembering that it will still be a couple of years until Lake Resources is likely to be producing lithium.
The post Why is the Lake Resources (ASX:LKE) share price surging 16% higher to a new record high? appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro owns Allkem Limited. 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.
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