The share price of Galaxy Resources Limited (ASX: GXY) continued its climb to close on Wednesday at $2.97 after gaining 2.41% as the company confirmed it was in talks with Panasonic but denied a deal had been struck.
The global lithium company has mining interests in Canada, Argentina and Western Australia, from where it made four shipments of lithium concentrate in the first half of this year.
With strong interest in lithium companies, spurred by a series of government announcements indicating greater shifts towards cleaner forms of energy, Australia's lithium companies are benefiting from the optimism.
The Orocobre Limited (ASX: ORE) share price has risen in the past three months from $3.55 to close on Wednesday at $4.85.
And Pilbara Minerals Ltd (ASX: PLS), which last week announced it had struck a deal with China's Great Wall Motors Company, has risen from $0.37c in the same period to close on Wednesday at $0.65c.
While Galaxy's suspected deal with Panasonic was refuted, the company's managing director, Anthony Tse, told the ASX that Galaxy is in talks the Japanese electronics company.
"Galaxy is uniquely positioned in the global lithium market and is currently engaged in discussions with a number of parties in the battery supply chain, including Panasonic, as part of its normal business, however these discussions are at this stage informal," Mr Tse said in a letter to the ASX.
"The Company is also in confidential discussions with car manufacturers in respect of the long-term supply of lithium but these discussions are also at this stage informal.
"The Company will make an announcement on ASX if these various discussions are completed.
"At this point in time, no agreements have been signed," he said.
Analysts have set an average 12-month price target of $3.00 for Galaxy, with some tipping the share price to edge towards $4.00.
