Silver, lithium, and critical minerals commodities book double digit gains in just one week

Silver, lithium, and critical minerals prices surged last week amid a broader ongoing commodities rally that is lifting ASX mining shares.

The prices of silver, lithium, palladium, molybdenum, and indium rose by more than 10%, with indium the stand-out with a 24% lift.

The energy transition is boosting demand for lithium to power batteries and silver to build solar panels and modern tech devices.

Silver has other tailwinds, including global economic uncertainty which is leading to investors seeking safe havens in silver and gold.

The restructure of global trade amid US tariffs and geopolitical tensions is also leading to many nations, including the US and China, limiting exports to protect home-based manufacturing and limit technological advancement and defence capabilities elsewhere.

This had led to new categorisations of certain commodities, such as silver, which the US added to its Critical Minerals List in November.

Let’s look at what happened last week with these commodities.

Silver

Last week, the silver price leapt 10.1% to close the global trading week at US$79.95 per ounce.

Silver was the best performing metal or mineral of 2025.

The silver price rose 147% — more than twice the pace of gold — and set a new record at US $83.90 per ounce in the last week of December.

Silver is the ‘poor cousin’ of gold but benefits from the same tailwind of investors seeking safe havens during economic uncertainty.

Tumultuous geopolitics, less faith in the US dollar as the reserve currency, and falling interest rates have fuelled investors’ interest in both.

Silver also has significant industrial uses that have gained relevance in the age of green energy, high technology, and advanced healthcare.

Silver is used in solar panels and tech devices, with Citi estimating that the solar industry is gobbling up 30% of annual production.

Technology device manufacturers use silver to build circuits, connectors, and to solder metals in smartphones, laptops, and other things.

Silver is also essential for electric vehicles (EVs) and data centres. It’s in the wiring due to its superior electrical conductivity to copper.

Last week, ASX 200 diversified miner South32 Ltd (ASX: S32) rose 8.45% to close the week at $3.85 per share.

The South32 share price also hit a 52-week high at $3.87 per share last week.

South32 owns the Cannington mine in north-west Queensland, which is one of the world’s largest producers of silver and lead.

Lithium

Lithium prices also surged last week, with the carbonate price ripping to a two-year high.

The lithium carbonate price leapt 17.2% to close the week at US$20,064.93 per tonne.

Higher demand and lower supply worldwide has seen lithium prices commence a remarkably rapid rebound over the past six months.

There is greater demand for lithium for batteries and power infrastructure, as well as EV manufacturing — especially in China where EVs outsold traditional cars for the first time last October.

China is also seeking to stabilise lithium prices by avoiding over-capacity.

Trading Economics analysts said:

The Bureau of Natural Resources of Yichun, which includes the lithium mining hub in the Chinese Jiangxi province, stated it would cancel 27 mining permits early next year.

The move was consistent with the earlier suspension of activity in CATL‘s Jianxiawo lithium mine as the Chinese government aims to reduce capacity in many goods industries to prevent the ongoing race-to-the-bottom that has stirred deflationary pressures.

Lithium’s surged last week pushed many ASX lithium mining shares to new 52-week highs.

PLS Group Ltd (ASX: PLS) shares rose 7.89% to finish the week at $4.65. PLS shares hit a 52-week high of $4.89 over the week.

The Liontown Ltd (ASX: LTR) share price streaked 26.5% higher to $2.05, and also struck a new 52-week high at $2.10.

Core Lithium Ltd (ASX: CXO) shares increased 17.86% to 33 cents on Friday, after hitting a two-year high at 36 cents during the week.

Critical minerals

The commodities palladium and indium, which are on the US Critical Minerals List, and molybdenum all rose by 10% or more last week.

Palladium is one of the six platinum-group metals (PGMs).

It is used in catalytic converters in low-emission vehicles. Converters process carbon monoxide and other toxic gases into less harmful gases like carbon dioxide and nitrogen, which reduces car emissions.

Palladium futures rose 10.6% last week to finish trading at US$1,870.50 per ounce.

Molybdenum strengthens steel and alloys so they can withstand high temperatures and pressures.

The commodity price price rose 10.3% to US$73.10 per kilogram last week.

Indium, which is largely generated as a by-product of zinc ore processing, is used in touchscreens, LEDs, and solar panels.

The indium price surged 24% to US$73.10 per kilogram.

Iltani Resources Ltd (ASX: ILT) is building an Australian-based portfolio of advanced critical minerals exploration projects.

Iltani’s main focus is its Herberton Project in northern Queensland.

Herberton has a long history of mining for tin, tungsten, copper, silver-lead-zinc, antimony, molybdenum, and gold.

Iltani’s project includes multiple tenements across a 367 square kilometre zone.

Iltani is exploring a large scale silver-indium rich epithermal system at the Orient deposit within the Herberton Project.

The company says:

With additional drilling planned at Orient, Iltani believes there is material potential to increase the grade and size of the Orient System as the project advances towards development.

The Iltani Resources share price has ripped by more than 220% over the past 12 months.

Last week, the ASX mining share slipped 3.9% to finish trading at 62 cents.

The post Silver, lithium, and critical minerals commodities book double digit gains in just one week appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Core Lithium and South32. 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.