ASX lithium shares are having a mixed day but there are two that are surging higher today.
The two outperformers are ASX minnows are Lithium Energy Ltd (ASX: LEL) and Global Lithium Resources Ltd (ASX: GL1).
The former jumped 9.6% to a high of $1.26 before settling to trade 4.35% higher at $1.20 a share at the time of writing. Meanwhile, the Global Lithium share price recorded an 11.87% jump, hitting $2.45. It's currently trading for $2.40, 9.59% higher.
In contrast, the All Ordinaries (ASX: XAO) is1.05% ahead while fellow lithium producer Allkem Ltd (ASX: AKE) is down 0.91% to $15.805 a share.
Hopes building for Lithium Energy share price
The Lithium Energy share price gathered momentum amid the company announcing the start of its first landmark drilling program.
The miner commenced drilling at its Solaroz Lithium Brine Project in Argentina. The project is within the so-called Lithium Triangle and is close to Allkem's mines.
The first hole is being drilled adjacent to Allkem's Olaroz Lithium Facility. Lithium Energy plans to drill 10 holes going for circa 5,000 metres.
Rising tide lifts all ASX lithium shares
Announcements like this don't normally attract such excitement. After all, it's the results from the drilling that are more important.
But it doesn't seem to take much to trigger a rally in ASX lithium shares. The commodity is in hot demand with several experts predicting a supply shortfall and booming demand for years to come.
Further increases in the price of lithium are adding to the fervour. Macquarie Group Ltd (ASX: MQG) noted on Friday that Chinese spot technical and battery-grade lithium carbonate (LCE) prices are up week on week (WoW).
More price gains for lithium
The prices gained 1% each to RMB482,500 per tonne (US$69,400/t) and RMB495,500/t (US$71,300/t), respectively (non-VAT adjusted).
The broker added:
Lithium carbonate supply remains tight in China due to logistic challenges caused by lockdowns in Sichuan and Qinghai. Realised spodumene prices rose 2% WoW to US$5,110/t.
Macquarie also noted that Global Lithium has recently secured a third drill rig at Manna. This will enable the ASX lithium miner to speed up infill drilling at the deposit.
Should you buy these ASX lithium shares?
The broker has an 'outperform' recommendation on the Global Lithium and Allkem share prices. Its 12-month target on the ASX lithium shares are $2.50 a share and $21 a share, respectively.
Macquarie does not cover the Lithium Energy share price, which has rallied 108% over the past year.
By comparison, the Global Lithium share price is up 513% and the Allkem share price is up 76% over the period.
