Why is the Pilbara Minerals share price racing 6% higher today?

Let's take a look.

Key points
  • The Pilbara Minerals share price is charging higher today 
  • Multiple ASX lithium shares including Core Lithium are soaring 
  • EV sales are tipped to outstrip all other engine sales by 2030 

The Pilbara Minerals Ltd (ASX: PLS) share price is having a top run today.

Pilbara shares are rising 6.45% and are currently trading at $3.96. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 0.41%.

Let's have a look at what is going on with the Pilbara Minerals share price.

A female employee in a hard hat and overalls with high visibility stripes sits at the wheel of a large mining vehicle with mining equipment in the background.

Image source: Getty Images

What's going on?

Pilbara Minerals is not the only ASX lithium share lifting today. Core Lithium Ltd (ASX: CXO) shares are lifting 8%, while Sayona Mining Ltd (ASX: SYA) shares are rising nearly 5%.

The S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 2.2% today.

Investor sentiment on electric vehicle (EV) sales could be providing lithium shares with a boost today. Lithium is an essential component of EV batteries.

New analysis from EY Global released overnight reveals EV sales in the US, China and Europe will "outpace all other engines three years sooner than expected". Combined EV sales are predicted to outstrip all other engine sales by 2030.

EY Global Advanced Manufacturing and Mobility Leader Randall Miller said:

Despite a series of finance and energy related headwinds in the last 12 months, the EV revolution continues to gain momentum and the point at which we think EVs will come to dominate the marketplace has actually moved forward.

Meanwhile, EV sales in Australia nearly doubled in 2022 from 17,243 in 2021 to 33,410 in 2022, drive.com.au reported today.

Pilbara shares have climbed 3.98% since market close on 30 December. Pilbara has not released any news to the market this week.

However, on 21 December, Pilbara provided an offtake and project expansion update. The company advised it has achieved a "significant improvement" in pricing outcomes with major offtake customers. Managing director and CEO Dale Henderson said:

The revised pricing outcomes with our major offtake customers represent a very positive outcome for our shareholders, reflecting the strong market for lithium raw materials supply and bringing our contracted pricing in alignment with the broader market.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has returned 16% in the last year.

Pilbara has a market capitalisation of about $11.15 billion based on the current share price.

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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