Why are ASX lithium shares having such a cracking start to the week?

ASX lithium shares are in the green today.

Lithium companies surging include Piedmont Lithium Inc (ASX: PLL) and Core Lithium Ltd (ASX: CXO). Sayona Mining Ltd (ASX: SYA), Allkem Ltd (ASX: AKE), and Global Lithium Resources Ltd (ASX: GL1) are also up.

Let’s look at what’s going on with ASX lithium shares on Monday.

What’s going on?

Piedmont shares are soaring 16.14%, while Core Lithium shares are up 10.2%. The Sayona Mining share price is climbing 3.64%, while Allkem and Global Lithium are 3.19% and 2.39% higher, respectively.

News that the USA’s “historic climate bill” has passed United States Congress may be helping lithium shares today. President Joe Biden will sign the bill this week, the ABC reports.

Lithium is a critical component in electric vehicle (EV) batteries.

As my Foolish colleague Bernd reported last week, this bill includes US$347 billion in climate and energy spending. The bill renews the US$7,500 tax credits for new EVs and lifts the cap of 200,000 cars per manufacturer. The bill stipulates the “critical minerals” for the EV batteries must be sourced in the US or a country with a free trade agreement with the US. Australia signed a free trade agreement with the US in 2005.

Piedmont Lithium could be especially well placed to benefit from this bill, given it is headquartered in North Carolina. Piedmont touts itself as a “leading, diversified developer of lithium resources critical to the US electric vehicle supply chain”.

Piedmont’s listing on the NASDAQ lifted nearly 19% on Friday. Lithium Americas Corp (NYSE: LAC) shares rose 6.21%, while Livent Corp (NYSE: LTHM) jumped 5.96%.

Meanwhile, Core Lithium’s share price is lifting today amid an exploration update. The company reported findings at the Anningie-Barrow Creek (ABC) Project as a “lookalike to the company’s high-grade discoveries at the Finniss Lithium Project”. Further, Core Lithium announced receiving two grants from the Northern Territory Government.

The post Why are ASX lithium shares having such a cracking start to the week? appeared first on The Motley Fool Australia.

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More reading

• What’s boosting the Allkem share price on Monday?
• Why is the Liontown share price leaping 5% on Monday?
• Why is the Piedmont Lithium share price rocketing 15% on Monday?
• Here’s why the Core Lithium share price is soaring 10% on Monday
• 2 quality ASX shares Wilsons just bought

Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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