Lighting up the market: ASX lithium stocks surge again on Tuesday

Chalk up another green day for lithium stocks…

| More on:
asx share price growth represented by cartoon man flexing biceps in front of charged battery

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • It was a stellar day for lithium stocks on the ASX on Tuesday
  • Major players saw share price rises of around 5%
  • Smaller companies also enjoyed healthy gains today

Once again ASX lithium stocks amped up their shareholders as the sector fired off another green day.

Taking a glance at the market, shares in some of the biggest lithium players such as Mineral Resources Limited (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS) finished up 5.71% and 5% respectively. Likewise, the slightly smaller end of town posted commendable gains. For example, Core Lithium Ltd (ASX: CXO) and Sayona Mining Ltd (ASX: SYA) closed 9.28% and 5.88% higher.

But what’s fuelling the excitement?

Checking in on ASX lithium stocks

To start with a baseline reading, the S&P/ASX 200 Index (ASX: XJO) inched 0.27% ahead on Tuesday. Clearly, there was something going on for ASX lithium stocks to be 5% or stronger while the rest of the market had an average day.

For a couple of these companies, the rally can be explained by announcements made to the market today that were well received by investors.

For starters, Pilbara Minerals published two notable news items today. This included word of a $20 million government grant alongside Calix Ltd (ASX: CXL) to further develop a decarbonised hard-rock lithium supply chain. Secondly, the lithium producer agreed to sell a base metal exploration tenement for $300,000 plus 2.5% royalties.

Another ASX lithium stock making waves today was Core Lithium. The company released a development update this morning regarding its Finniss Lithium Project located near Darwin.

According to the release, it is anticipating the commencement of ore crushing next month. As such, Core remains on track for production to commence by the end of the year. The development marks an important step in the right direction for the pre-revenue mining company.

As for the remaining ASX lithium stocks, it appears a rising tide lifted all boats. Prices of the all-important battery commodity have remained elevated with forecasts still indicating a future deficit in supply.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

More on Resources Shares

a man wearing a hard hat and a high visibility vest stands with his arms crossed in front of heavy equipment at a mine site.
Broker Notes

Should investors dig the Fortescue share price in July?

Fortescue is suffering in the sell-off. Will things get better in July?

Read more »

An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background
Resources Shares

Why did the Rio Tinto share price plunge 11% in June?

Let's analyse the month just gone by.

Read more »

Young boy with glasses in a suit sits at a chair and reads a newspaper.
Resources Shares

How did the Fortescue share price perform in June?

The iron ore producer's shares have been experiencing a rough patch of late.

Read more »

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Why did the BHP share price take a tumble in June?

BHP shares dropped into the red in June. Here's what happened...

Read more »

A businessman hugs his computer.
Ask a Fund Manager

I loved this ASX share a year ago, and it’s still my long-term pick: expert

Ask A Fund Manager: Datt Capital's Emanuel Datt consistently names the same stock as the one he would hold for…

Read more »

A miner holds two hands full of coal, indicating share price movement for coal and energy companies
Resources Shares

Own Soul Patts shares? Here’s how much of its portfolio is exposed to coal

Is Soul Patts heavily invested in coal shares?

Read more »

Gold bars and Australian dollar notes.
Resources Shares

Do Evolution Mining shares pay a dividend?

The ASX 200 mining shares are known as good dividend payers -- is Evolution among them?

Read more »

A woman frowns and crosses her arms.
Resources Shares

What’s dragging on the Fortescue share price today?

Fortescue's shares have dropped into the red today...

Read more »