Why is the Lake Resources share price leaping 5% today?

The Lake Resources N.L. (ASX: LKE) share price is having a top run today.

This ASX lithium share is soaring 5.36% and currently trading at $1.18. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.05% in the red at the time of writing.

Let’s take a look at what could be impacting the Lake Resources share price today.

Lithium news

Lake Resources is not the only ASX lithium share to rise today. Core Lithium Ltd (ASX: CXO) shares are soaring nearly 11%, while Allkem Ltd (ASX: AKE) shares are up 1.48%.

In news last night, Indonesia is reportedly in talks with Australia to partner on lithium and the electric vehicle battery market.

Indonesian chamber of commerce and industry Arsjad Rasjid said business leaders have been discussing investing in Australian lithium resources, The Australian reported. Rasjid said:

If we can work together on this then Indonesia and Australia could be the global supply chain for EV batteries.

Indonesia is very serious about investing in lithium mines.

World leaders including Australian Prime Minister Anthony Albanese and US President Joe Biden are meeting in Bali for the G20 Leaders’ Summit this week. Rasjid told the publication he plans to speak to the Prime Minister on this potential lithium partnership.

Meanwhile, news of easing COVID-19 restrictions in China could also be giving lithium shares a boost today. China is reducing quarantine times and will stop recording secondary contacts, as my Foolish colleague Brooke highlighted earlier today.

China is a major electric vehicle market. Lithium is used in EV batteries. In October, Tesla exported a record number of EVs to China.

Lake Resources is exploring five lithium projects in the lithium triangle, according to a presentation on Thursday.

Lake Resources share price snapshot

The Lake Resources share price has leapt 17% in the year to date, while it has jumped 20% in a year.

For perspective, the ASX 200 has shed nearly 4% in the past year.

Lake Resources has a market capitalisation of $1.64 billion based on the current share price.

The post Why is the Lake Resources share price leaping 5% today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Core Lithium share price having such a top run on Friday?
• Why Block, Lake Resources, Pendal, and Xero shares are dropping today
• Here are the 3 most traded ASX 200 shares on Tuesday
• Lake Resources share price dips amid latest short-seller attack
• Here are the top 10 ASX 200 shares today 

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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