S&P/ASX 200 Index (ASX: XJO) lithium shares have rallied for a third-consecutive session this week, scoring fresh all-time highs across the board on Wednesday
The largest ASX 200 lithium player, Pilbara Minerals Ltd (ASX: PLS) has rallied almost 15% this week, adding another 3% today to $2.40.
JPMorgan upgrades its ASX 200 lithium shares
The lithium sector rallied strongly on Tuesday, many of which posted double digit percentage gains following bullish commentary from JPMorgan.
As covered by the Motley Fool, JPMorgan upgraded the five ASX 200 lithium shares under its coverage including Pilbara Minerals, Galaxy Resources, Orocobre, IGO Ltd (ASX: IGO) and Mineral Resources Limited (ASX: MIN).
All five shares were either upgraded or currently overweight rated.
The broker believes that there isn’t enough lithium product to meet demand in the medium-term.
As such, the broker upgraded its long-term lithium hydroxide price by 12% to US$14,000 a tonne.
The bullish sentiment and buying activity might have carried over into Wednesday’s session, driving further gains across the board.
More good news for the lithium industry
There seems to be no shortage of good news for ASX 200 lithium shares.
Last week, President Joe Biden signed an executive order with a non-binding target of at least half of all new vehicles sold in 2023 to be electric.
Reuters reported a positive joint statement from General Motors, Ford and Chrysler saying they aspired “to achieve sales of 40-50% of annual U.S. volumes of electric vehicles … by 2030”.
There have been some electric vehicle talks back at home, with the New South Wales transport minister, urging the Morrison government to accelerate the move to electric vehicles by using them as federal government fleets, according to The Guardian.