The Green Technology Metals Ltd (ASX: GT1) share price continued its impressive run today despite no news from the lithium company.
At the closing bell, the company’s shares were swapping hands for 83 cents, up 1.84%. However, in earlier trade, they hit 95 cents, a 16.5% gain on yesterday’s closing price.
Let’s take a look at what might be impacting the company’s share price.
The Green Technology share price has been on a roll since the start of the year. Since the market closed on 31 December, the explorer’s shares have exploded by 59.6%. They have finished in the green every day this week, including soaring by 13.77% on Tuesday.
Investors may be reacting to strong demand for lithium and a tightening supply. Lithium carbonate prices in China have soared 10% from 277,500 yuan per tonne to 306,500 yuan per tonne since the start of the year.
Bloomberg reported on Wednesday supplies of the battery commodity are at risk, while demand is increasing due to growing electric vehicle uptake. Plant maintenance and Winter Olympic restrictions in China and labour shortages in Australia were cited as reasons for the supply issue.
Additionally, Liontown Resources CEO Tony Ottaviano on Wednesday played down concerns by some analysts over a lithium supply glut. He noted the difficulties for smaller companies entering the lithium space.
Positive broker notes on the lithium sector may also be weighing on investors’ minds. As my Foolish Colleague Brooke reported on Tuesday, multiple brokers are optimistic about the commodity. JP Morgan expects the lithium market will grow 24% by 2030, while S&P Global Platts predicts a supply shortfall of 5,000 megatons of lithium carbonate in 2022.
In December Green Technology advised it had commenced drilling at the Seymour lithium asset in Ontario, Canada. Drilling is expected to be completed by March 2022. Results from the drilling are not yet available.
Also, on 4 January, the company provided a response to a price query from the ASX. Green Technology confirmed it is complying with the listing rules and is not aware of any information not released to the market that could explain recent trading of its shares.
That day, Green Technology shares hit a new record high of 68 cents amid optimism over the impending drilling results.
Green Technology share price snapshot
The Green Technology share price has soared 140% in the past months and 33% in the past week.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned 1.6% in the past month.
The company commands a market capitalisation of roughly $160.9 million based on the current share price.