The market may be having a subdued finish to the week but that hasn't stopped one group of shares from racing higher.
In afternoon trade, a number of ASX lithium shares are smashing the market with solid gains. Here's what's happening:
Which ASX lithium shares are outperforming?
Here's a summary of how some popular ASX lithium shares are performing:
- The Allkem Ltd (ASX: AKE) share price is up 5%
- The Liontown Resources Ltd (ASX: LTR) share price is up 2.5%
- The Mineral Resources Limited (ASX: MIN) share price is up 4%
- The Pilbara Minerals Ltd (ASX: PLS) share price is up 2.5%
Why are they rising?
Investors appear to have been buying lithium shares today after a strong night on Wall Street for US listed lithium stocks despite broad market weakness.
The likes of SQM, Livent, and Albemarle recorded gains of at least 3% after investors responded positively to the latter's quarterly update.
According to Reuters, Albemarle, which is the world's largest lithium producer, posted a better-than-expected quarterly profit and lifted its annual forecast thanks to surging prices and demand for the electric vehicle battery metal.
Albemarle reported third-quarter net profit of US$897.2 million or US$7.61 per share, up from a net loss of US$392.8 million or US$3.36 per share a year earlier. And excluding one-offs, the mining giant delivered earnings of US$7.50 per share, ahead of consensus estimates of US$6.99 per share.
Anything else?
Lithium shares were also given a boost locally today with news that the Federal government is being pushed to prioritise and pass the "electric car discount" election promise before parliament closes for the year.
If this promise is actioned, the ABC reports that it would reduce the cost of some of the most popular zero and low-emissions vehicles by $1000s. This would likely give electric vehicle sales a major boost in Australia.
Though, given how small the Australian market is, it wouldn't necessarily have a material impact on lithium demand. But every bit counts!
