Up 566% in a year, Lake Resources share price surges 10% today

The ASX lithium share will be added to the ASX 200 on Monday as part of the quarterly review.

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The Lake Resources NL (ASX: LKE) share price is charging higher today.

Again.

At the time of writing, the ASX lithium share is up 10.5%.

Lake Resources shares closed yesterday at $1.52 and are currently trading for $1.68.

With those intraday gains factors in, Lake Resources shares are up a phenomenal 566% since this time last year.

What’s moving the Lake Resources share price?

Over the past year, investors have been bidding up most ASX lithium shares.

The strong interest is being driven by the fast-growing EV markets, with lithium a core element in the batteries that make them go.

Today’s leap higher in the Lake Resources share price also looks to be related to the upcoming rebalance among the ASX indexes, including the S&P/ASX 200 Index (ASX: XJO).

That’s important to Lake Resources as the company will be added to the ASX 200 commencing next Monday, 20 June.

Investors look to be getting in ahead of the rebalance with an eye on the pending benefits.

Among those benefits, companies included in the ASX 200 are better researched by analysts and receive more media attention.

Importantly, the Lake Resources share price could benefit as its shares can be bought by funds that are restricted to investing in the larger end of the market. Atop that, ASX 200 index-tracking funds will be adding Lake Resources shares to their holdings.

Rival ASX lithium share Core Lithium Ltd (ASX: CXO) will also be added to the ASX 200 next Monday. Its shares are up 8.2% at the time of writing.

Motley Fool contributor Bernd Struben 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.

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