There seems to be no shortage of bullish news for ASX lithium shares with spot prices continuing to mark fresh all-time highs.
Battery-grade lithium carbonate prices hit 190,000 yuan/metric tonne (mt) on 15 October. This surpasses the previous high of around 160,000 yuan/mt just two weeks ago.
What’s driving lithium prices?
S&P Global Platts reported that market sources attributed the sustained price increase to “tight supplies exacerbated by the ongoing power restrictions in China, as well as bullish downstream demand from the new electric vehicle sector”.
One of China’s largest lithium producers, Ganfeng Lithium, is passing on the rising costs of production to customers. It has announced a 10% increase in lithium prices or 10,000 yuan/mt from 10 October to 9 November.
A China-based battery maker said, “although a very small number of our productions are completely shut down, a part of our battery orders will be postponed to Q1 next year.”
How are ASX lithium shares performing on Tuesday?
Emerging producers and explorers are running well ahead of large-cap players.
The Pilbara Minerals Ltd (ASX: PLS) share price is currently up 0.47% to $2.13, while Orocobre Limited (ASX: ORE) is down 0.11% to $9.07.
Despite a relatively flat performance on Tuesday, Pilbara Minerals and Orocobre have both bounced 10-15% in the last two weeks.
The speculative end of town is rife with winners.
Coined “Australia’s next lithium producer”, the Core Lithium Ltd (ASX: CXO) share price is surging. It’s up 10% to 60.5 cents and around 47% in the last month.
Emerging lithium producer Ioneer Ltd (ASX: INR) is rallying 7.36% to 69.25 cents.
Small-cap lithium technologies company Lithium Australia NL (ASX: LIT) is up 8.7% to 12.5 cents. This comes after it announced today one of its subsidiaries is expanding its battery manufacturing capabilities.