ASX lithium share Liontown Resources Limited (ASX: LTR) is one of a very small number of new positions opened in 2022 by a leading multi-billion-dollar listed investment company (LIC).
The annual report of the $6.6 billion LIC Argo Investments Limited (ASX: ARG) reveals it purchased 7,575,758 Liontown shares this year. These shares are currently worth $15.93 million.
Over the year to date, the Liontown share price is up 11%.
What other ASX lithium stocks does Argo like?
Liontown isn't the only ASX lithium share that Argo has chosen to invest in.
While not a new purchase, Argo's biggest lithium shareholding is IGO Ltd (ASX: IGO). In fact, it increased its position in IGO by 20% in 2022, according to the report.
The IGO share price is up 38% year to date.
The LIC owns 3,680,970 IGO shares currently worth $60.59 million.
After Argo's annual general meeting (AGM) this week, managing director Jason Beddow said rising global electric vehicle (EV) manufacturing would keep demand for lithium above supply for at least five years.
At the AGM, Beddow said:
The price of spodumene, which is the base ore for lithium production, has increased over +500% in 12 months, as global automakers and battery manufacturers fight to lock in limited supply at almost any price.
Broker backs Liontown shares
As we reported last week, top broker Macquarie is bullish on Liontown shares.
The broker has a 12-month share price target of $2.50 on the stock.
The Liontown share price closed at $1.935 on Wednesday, down 1.78% for the day.
Based on Macquarie's tip, that's a potential 29% upside for Liontown investors over the next 12 months.
As my colleague Brooke reports, Liontown shares are among three ASX mining shares to turn a $10,000 investment into a $500,000 profit over the past decade.
