ASX lithium shares are steaming ahead on the market today.
Lithium companies in the green include Ioneer Ltd (ASX: INR), Global Lithium Resources Ltd (GL1) and Lake Resources NL (ASX: LKE). Piedmont Lithium Inc (ASX: PLL) and Pilbara Minerals Ltd (ASX: PLS) shares are also ahead. In comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) is climbing just 0.39% today.
So what is going on with ASX lithium shares today?
Lithium price outlook promising
The Ioneer share price is rising 9.43% today, while Global Lithium shares are lifting 7.86%. Meanwhile, Lake Resources shares have leapt 8.08%, Piedmont Lithium shares are ascending 6.4% and the Pilbara share price is rising 2%.
News out of Livent Corp (NYSE: LTHM) in the United States could be providing investors with confidence. The company reported record financial results in the second quarter of 2022 and higher lithium prices. Revenue exploded 114% compared to the prior year, while earnings before interest, tax, depreciation, and amortisation (EBITDA) was six times higher.
CEO Paul Graves said:
Lithium demand was exceptionally strong through the first half of 2022. Published lithium prices in all forms moved higher in the second quarter amid tight market conditions. We continue to achieve higher realised prices across our entire product portfolio.
Further, the company signed a six-year supply agreement with General Motors Company (NYSE: GM) including a $198 million advanced payment. Livent shares lifted 6.84% in the US on Tuesday. Lithium is a critical component of electric vehicle batteries.
Closer to home, Pilbara Minerals has also reported today the price of lithium remains strong. Spodumene prices are reaching more than US$5,000 per tonne, as my Foolish colleague Zach reported today. Pilbara highlighted the lithium deficit could grow by 1.8 million tonnes.
Pilbara also released results of its latest auction on the Battery Material Exchange (BMX) today, as my Foolish colleague James reported. The company accepted the highest bid of US$6,350 per dry metric tonne (dmt), after receiving 67 bids online within 30 minutes.
Global Lithium also reported that "exponential take up of EVs" is causing lithium supply shortages in a presentation to the Diggers and Dealers Mining Forum.
The company reported that the "lithium market [is] surging [with] spodumene concentrate prices up +700% year on year".
