The lithium miners have had a very strong start to the week and continued their impressive run.
In early afternoon trade almost all of the lithium-focused miners have posted strong gains as investors fight to get hold of shares due to bullish global demand forecasts for the metal.
Demand for lithium carbonate is expected to grow strongly in the coming years thanks to a number of countries pledging to ban the manufacture and sale of internal combustion vehicles in the not so distant future.
This is expected to lead to electric vehicle usage growing exponentially, complementing the strong demand being seen in the renewable energy sector.
Here's the current state of play in the industry today.
The Galaxy Resources Limited (ASX: GXY) share price is up almost 6% to $3.49. Bringing its three-month return to in excess of 81%.
The Kidman Resources Ltd (ASX: KDR) share price has climbed 5.5% to $3.82. The junior lithium miner's shares have now doubled in value in the last three months.
The Mineral Resources Limited (ASX: MIN) share price is up 3% to $18.57. The diversified miner and mining services company's shares have gained 80% in the last six months.
The Orocobre Limited (ASX: ORE) share price has risen 2% to $5.09 and sits just a fraction off its all-time high. Despite being one of the most shorted ASX shares, Orocobre's shares are up 83% in six months.
The Pilbara Minerals Ltd (ASX: PLS) share price is up 5% to 84.5 cents. Its shares have now risen a staggering 120% in just the last 30 days.
Foolish Takeaway
As a Galaxy Resources shareholder I'm obviously delighted at these recent gains. However, I wouldn't be a buyer at current prices. I think the lithium miners are about fair value now and would class them as holds.
