Could ASX 200 lithium shares bask in sky-high lithium prices into the future? Here's what Argo says

Investment giant Argo Investments Limited (ASX: ARG) predicts demand for the commodities underpinning electric vehicles (EVs) will rise well into the future. This could include lithium.

Argo has expanded its exposure to ASX 200 lithium share IGO Ltd (ASX: IGO) in 2022.

In an AGM investor presentation this week, Argo managing director Jason Beddow placed the spotlight on the lithium price. He said:

The price of spodumene, which is the base or for lithium production, has increased over +500% in 12 months, as, as global automakers and battery manufacturers fight to lock in limited supply at almost any price.

EV demand driving commodities

Argo noted demand for EVs was expected to rise right up until 2030. Lithium is an essential component in EV batteries.

Reflecting on the demand for commodities used in EVs, Beddow said:

Sustainable energy and electric vehicles are two trends that fall into the decarbonisation category. The commodities that underpin these themes will likely remain in demand well into the future.

IGO has 49% ownership in a joint venture with the Tianqi Lithium Corporation, which is currently focused on lithium assets in Western Australia.

As my Foolish colleague Bronwyn reported yesterday, Argo has lifted its position in ASX 200 lithium share IGO by 20% in 2022, with 600,000 new shares. Commenting on IGO, Beddow said:

Lithium remains one of the key components in batteries for electric vehicles. IGO is one of the biggest lithium producers in Australia and provides high quality exposure to the rapidly growing battery materials market, with low-cost lithium and nickel operations.

Argo also opened a position in ASX lithium share Liontown Resources Limited (ASX: LTR) for the first time in 2022, buying up 7,575,758 Liontown shares. Liontown is exploring the Kathleen Valley lithium mine in WA.

Share price snapshot

The Liontown Resources share price has increased 16% in the year to date, while IGO shares have soared 44%.

For perspective, the S&P/ASX 200 (ASX: XJO) has fallen 8.2% since January.