It's another day of blue – or green – skies for ASX lithium stocks, with shares in many of the market's favourites roaring higher.
While the S&P/ASX 200 Materials Index (ASX: XMJ) outperforms the broader S&P/ASX 200 Index (ASX: XJO), lithium stocks are leading the sector.
The Liontown Resources Limited (ASX: LTR) share price is taking out the top spot, gaining 8.1% to trade at $1.865.
Other winners include Lake Resources NL (ASX: LKE) – up 5.4% to $1.275, Allkem Ltd (ASX: AKE) – up 6.2% to $14.96, Pilbara Minerals Ltd (ASX: PLS) – up 6.2% to $4.195, and Core Lithium Ltd (ASX: CXO) – up 4.3% to $1.59.
In comparison, the ASX 200 is up 1% right now while the materials sector is lifting 1.8%.
So, what might be boosting ASX lithium stocks sky high on Thursday? Let's take a look.
What's driving ASX lithium stock sky-high?
There's not a lot of news to help explain what's going on with ASX lithium stocks today. Though, the sector has had a good week so far.
Of course, lithium fans will remember broker JP Morgan reportedly upped its price targets for both lithium and producer Pilbara Minerals earlier this week.
The broker also tipped demand for the battery-making material to continue, expecting a supply shortfall to last until 2025, The Australian reported.
That view was supported by Piedmont Lithium Inc (ASX: PLL) CEO Keith Phillips, who this week told Yahoo Finance:
There's going to be a real crunch to get the material. We don't have enough in the world to turn that much [lithium] production in the world by 2035.
We're now in an era where everyone's going to want an electric car. The car companies can't make them fast enough, and people are now looking for the lithium they need for the batteries to go in those electric cars.
Indeed, the Federal Chamber of Automotive Industries (FCAI) revealed electric vehicle sales hit a new Australian record in August.
Battery-powered vehicles made up 4.4% of all cars sold in the nation last month. In fact, 3.5% of all cars sold in Australia in August were made by Tesla Inc (NASDAQ: TSLA).
All that, and likely more, might be bolstering sentiment for ASX lithium stocks this week, potentially culminating in today's strong performance from shares involved in the material.
