The lithium industry has been on fire again recently, with a number of ASX lithium shares recording very strong gains.
The good news for investors is that it may not be too late to join the party, with analysts still seeing plenty of upside ahead for some of these shares.
Three ASX lithium shares that brokers continue to rate as buys are listed below. Here's what you need to know:
Allkem Ltd (ASX: AKE)
The first ASX lithium share to consider is Allkem. It is one of the world's largest lithium miners with projects in Argentina, Australia, and North America. From these projects, the company is aiming to maintain a 10% share of global lithium supply over the long term.
According to a recent note out of Macquarie, its analysts are bullish on Allkem and have an outperform rating and $21.00 price target on its shares. Based on the current Allkem share price of $15.95, this implies potential upside of 32% for investors over the next 12 months.
Liontown Resources Limited (ASX: LTR)
Another ASX lithium share that is rated highly is Liontown Resources. It is the lithium developer which owns the Kathleen Valley and Buldania projects in Western Australia. However, unlike the others, Liontown isn't producing lithium yet. The Kathleen Valley project is scheduled to commence production in 2024.
A note out of Bell Potter reveals that its analysts have a speculative buy rating and $2.87 price target on the company's shares. Based on the current Liontown share price of $1.81, this suggests potential upside of 59% for investors.
Pilbara Minerals Ltd (ASX: PLS)
Finally, this lithium giant has been named as a buy. It is the owner of the Pilgangoora Lithium-Tantalum Project, which is located approximately 120kms from Port Hedland in the Pilbara region of Western Australia. It produced 377,902 dmt of spodumene concentrate in FY 2022. Management is now looking at growing this to 1 million dmt per annum in the coming years.
Macquarie is also a fan of Pilbara Minerals. It currently has an outperform rating and $5.60 price target on the company's shares. Based on the current Pilbara Minerals share price, this implies potential upside of 24% for investors over the next 12 months.
