Why the Orocobre (ASX:ORE) share price is zooming 7% higher today

The Orocobre Limited (ASX:ORE) share price is surging higher on Monday. Here’s why the lithium miner’s shares are on fire today…

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The Orocobre Limited (ASX: ORE) share price has been a strong performer on Monday.

In afternoon trade, the lithium producer’s shares are up a sizeable 7% to $5.20.

Why is the Orocobre share price zooming higher?

There appear to have been a couple of catalysts for today’s strong gain by the Orocobre share price.

One of those is the increasingly bullish sentiment in the industry due to improving lithium prices. This is being driven by an expected increase in demand for the battery making ingredient thanks to electric vehicle adoption and increased investment in renewable energy.

It isn’t just the Orocobre share price charging higher. Also on the rise today have been the Galaxy Resources Limited (ASX: GXY) share price with a 6% gain and the Pilbara Minerals Ltd (ASX: PLS) share price with a 10% gain.

What else happened?

In addition to this, the Orocobre share price was given a boost this morning after revealing that its Naraha Lithium Hydroxide Plant in Japan was largely unscathed following an earthquake off the coast of Fukushima Prefecture on Saturday.

Management commented: “An initial inspection of the plant with the construction contractor, Veolia Jenets on the morning of 14 February found some minor damage to the site office but did not find any visible defects to plant equipment. Additionally, there is no damage to site infrastructure services.”

“A further inspection will be undertaken on 15 February to confirm the initial observations and assure the safety of the site prior to the recommencement of construction work,” it added.

The Naraha Plant is the first of its kind to be built in Japan and is a joint venture with Toyota Tsusho Corporation (TTC).

It is designed to convert primary grade lithium carbonate feedstock sourced from the Olaroz Lithium Facility into purified battery grade lithium hydroxide.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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 Bruce Jackson.

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