Why are ASX lithium shares leaping ahead today?

ASX lithium shares are having a top run on the market today.

Lithium shares in the green include:

• Core Lithium Ltd (ASX: CXO), up 2.3%
• Pilbara Minerals Ltd (ASX: PLS), up 2.22%
• Allkem Ltd (ASX: AKE), up 2.08%
• Lake Resources N.L. (ASX: LKE), up 2.22%

For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 1.27% today.

Let’s take a look at why ASX lithium shares are leaping higher today.

What’s going on?

ASX lithium shares appear to be following in the footsteps of their United States peers overnight.

The share price of New York Stock Exchange lithium giant Albemarle Corporation (NYSE: ALB) jumped 2.64% in the US overnight, while Livent Corp (NYSE: LTHM) shares rose 4.22%. Sociedad Quimica y Minera de Chile (NYSE: SQM) shares climbed 1.06%.

This was despite the lithium price sliding again. The Lithium Carbonate Index (battery grade) fell 3.04% to US$31,924.16 on the Shanghai Metals Market, while the Lithium Hydroxide Index (battery grade) fell 3.1% to US$43,538.22.

Lithium hydroxide has also fallen 3.01% on the London Metal Exchange to US$58,100.

Saxo Markets Australia market analyst Jessica Amir, quoted by The Australian yesterday, is positive on lithium long term but noted the sector is a “highly volatile space”. She said:

Investors are thinking the reporting season in August might be ugly compared to what it has been.

However, we are bullish long term on lithium.

Share price snapshot

The Core Lithium share price has fallen 31% in the last year, while Pilbara shares have gained 20%.

Allkem shares have slid 15%, while Lake Resources shares have descended nearly 77% in the last 12 months.

The post Why are ASX lithium shares leaping ahead today? appeared first on The Motley Fool Australia.

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More reading

• Why Arafura, Core Lithium, Mayne Pharma, and Newcrest shares are storming higher
• EverGreen Lithium share price rockets after IPO: everything you need to know
• 50% fall: Are ASX 200 lithium shares a bargain buy right now?
• These are the 10 most shorted ASX shares this week
• Buy Pilbara Minerals and these ASX growth shares in April: experts

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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