2 ASX lithium shares that defied today's sell-off to climb higher

These lithium stocks leapt ahead today. Here's why.

Key points
  • ASX lithium shares Galan Lithium and Neometals beat the broader index today 
  • The Materials Index fell nearly 3% today, while the ASX 200 also slipped
  • Both companies have released positive updates in the last couple of days

The S&P/ASX 200 Materials Index (ASX: XMJ) fell 2.96% today, making it the worst-performing sector index. But two ASX lithium shares bucked the trend.

The S&P/ASX 200 Index (ASX: XJO) also had a tough day, down 1.84%

However, Galan Lithium Ltd (ASX: GLN) and Neometals Ltd (ASX: NMT) shares both finished in the green.

So why did these ASX lithium shares fare so well today?

Two people climb to the summit and raise their arms in success as the sun rises brightly over the mountains.

Image source: Getty Images

Galan Lithium

Galan Lithium shares jumped 1.9% higher today to $1.61. Investors appeared to be maintaining momentum in the share following a positive update yesterday.

Galan has applied to scale up the piloting plant stage of its HMW project in Argentina. Galan is aiming to construct a 4 kilo-tonnes per annum lithium carbonate equivalent plant in the second half of 2023.

Commenting on the news, Galan managing director JP Vargas de la Vega said:

The scaling to semi-commercial pilot plant testing delivers significant ancillary and de-risking benefits, including the construction of larger ponds which are similar to those planned to be utilised during HMW's full-scale production stage

The Galan share price climbed 1.94% on Wednesday following the update. This ASX lithium share is now up more than 30% in the past month.

Neometals

Neometals shares climbed 3.13% today to $1.16.

The ASX lithium share's battery materials business units include lithium-ion battery recycling, vanadium recovery, and lithium chemicals.

Neometals has developed a process to produce lithium hydroxide from lithium chloride using electrolysis through a 70% owned subsidiary.

However, today's news relates to the Barrambie titanium and vanadium project in Western Australia. Neometals informed the market of a successful commercial-scale smelting trial. Barrambie mineral concentrate blended with commercial ilmenites produced +90% titanium dioxide chloride slag.

Commenting on the news, Neometals managing director Chris Reed said:

The ability to produce chloride-grade titanium slag from simple gravity concentrate from Barrambie is the key technical milestone for the next stage of project development.

Despite today's gains, the Neometals share price is down more than 3% in the past month.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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