The Global Lithium Resources Ltd (ASX: GL1) share price is soaring 10.77% this afternoon to $2.16. That takes its gains for the week to 27.43% since last Friday's close.
Other ASX lithium shares are also up over the same period, including Liontown Resources Limited (ASX: LTR), up 13.27%, and Core Lithium Ltd (ASX: CXO), up 24.51%.
The broader picture is that the S&P/ASX 200 Materials Index (ASX: XMJ) is also up over this time, making a gain of 4.72%
There has been no news from Global Lithium today to explain why its shares are surging.
However, it's more likely that shares are up following positive developments in the lithium industry and its most recent update in August.
So let's investigate those and see if we can piece together what's happening.
What's going on with Global Lithium?
The most recent update for the company was made on 19 August. It announced metallurgical test work for its Marble Bar Lithium Project in Port Hedland, Western Australia, of which it reported "very promising" results.
Some of its findings included 5.9% of lithium oxide spodumene concentrate at the site. The Global Lithium share price edged 1.87% higher on the back of the results.
Broader developments in the lithium industry have also occurred, including the fact that electric vehicle sales reached a new all-time high in Australia, as reported by the Federal Chamber of Automotive Industries (FCAI) on Monday.
And in the United States, California mandated that all new vehicles to be sold in the state will be powered by hydrogen or electricity by 2035, which was announced at the end of August.
So these factors are driving up the demand front, while on the supply end of things, the International Energy Agency said lithium could be in short supply as soon as 2025, reported in June by the World Economic Forum.
Global Lithium share price snapshot
The Global Lithium share price is up around 84% year to date and 450% over the past 12 months. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down around 9% and 6% over the same periods, respectively.
The company's market capitalisation is $352,310,008
