The Liontown Resources Limited (ASX: LTR) share price is leaping higher today, up 5.9%.
Liontown shares closed yesterday trading for $1.36 and are currently worth $1.44.
So, why are investors bidding up the price of the ASX lithium producer?
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Lithium shares in the spotlight
It's not just the Liontown share price that's outperforming today.
Many of the other top ASX lithium shares are charging higher too. Core Lithium Ltd (ASX: CXO) shares, for example, are up 6.7% at the time of writing while the Pilbara Minerals Ltd (ASX: PLS) share price is up 5%.
With no fresh price-sensitive news out of the company, it looks like investors are broadly keen on the lithium space.
And as a producer, Liontown is able to take advantage of the soaring spot prices for lithium. Those prices have surged some 500% over the past 12 months as demand for the lightweight, conductive metal used to power EV batteries has outpaced new supply.
Liontown was said to be among the ASX lithium companies in "a very strong position" by David Franklyn, portfolio manager of the Argonaut Natural Resources Fund.
According to Franklyn (courtesy of the Australian Financial Review)
We look out for large companies that are in tier-one locations, have a large resource base, are in production and also have the ability to further grow production. The guys who maximise the benefit of those higher prices are the ones that are in production today and don't have everything locked away in long-term contracts because you need to be able to sell near spot [prices].
Liontown Resources counts among the Argonaut Natural Resources Fund's top-3 ASX lithium share holdings.
Liontown share price snapshot
The Liontown share price is up an impressive 251% over the past 12 months, far outpacing the 4% gains posted by the All Ordinaries Index (ASX: XAO) in that same period.
The ASX lithium share hit all-time closing highs of $2.12 on 4 April.
