Why did the Lake Resources share price pop and then stop on Friday?

The Lake Resources N.L. (ASX: LKE) share price climbed as much as 8% before giving back much of its gains on Friday.

In the minutes after market open, shares in the clean lithium developer hit an intraday high of $1.285. However, as the day progressed, they dropped back and are now trading at $1.22 apiece, up 2.10%.

Let’s take a look at what news is surrounding the company today.

What happened to Lake Resources?

The broader S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also enjoying gains today.

The benchmark index representing a number of companies that produce gold, steel and/or precious metals is currently up 1.18%.

While the Lake Resources share price may be outperforming its sector today, it appears investors have been taking a breather on the company this week.

Lake Resources shares have gained 94% over the past month, but have ended the last three sessions before today in the red.

However, one positive development is providing support across the sector.

As reported by The Age, the federal government is looking at ways to remove barriers that could see car manufacturers supply more electric vehicles to Australia.

Volkswagen Australia managing director Paul Sansom was “struggling to convince his parent company to supply more vehicles under the existing regime”, according to the report.

Climate Change and Energy Minister Chris Bowen will be discussing fuel efficiency standards at a national electric vehicle summit on Friday.

He will talk about how “existing fuel efficiency standards are limiting freedom of choice in the market because they create a barrier to the wider adoption of vehicles that do not need petrol or diesel”.

Lake Resources has an aspirational target of developing a production capacity of 100,000 tonnes of lithium carbonate annually by 2030.

If Australia overhauls the current fuel efficiency standards, this could bode well for the lithium industry.

It would mean that consumers would get greater access to popular new electric vehicle models.

As part of its bid to reach this production target, Lake Resources today announced the appointment of experienced mining company commercial executive Sean Miller to the new position of corporate development officer. It will be his aim to fast-track development activity across Lake’s three brine projects in the Jujuy Province of Argentina.

Lake Resources share price snapshot

After hitting a year-to-date low of 58.5 cents on 15 July, the Lake Resources share price has zipped 105% higher.

Based on today’s price, Lake Resources presides a market capitalisation of roughly $1.76 billion.

The post Why did the Lake Resources share price pop and then stop on Friday? appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Down 16% in 3 days: Why is the Lake Resources share price still sliding?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Lake Resources share price sinking 8% on Wednesday?

Motley Fool contributor Aaron Teboneras 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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