Lithium shares on the ASX were a mixed bag today, with several finishing the day in the green.
However, it wasn't all rosy for lithium, with several lithium explorers sliding into the red.
Overall, Australian shares were moving in a positive direction today, with the S&P/ASX 200 Index (ASX: XJO) lifting 0.87%.
Let's take a look at what weighed on ASX lithium shares today.
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What happened to ASX lithium shares?
Lithium shares that finished in the green today included:
- Pilbara Minerals Ltd (ASX: PLS), leapt 2.27%
- Allkem Ltd (ASX: AKE), rose 1.56%
- Mineral Resources Ltd (ASX: MIN), jumped 1.99%
- Piedmont Lithium Inc (ASX: PLL), lifted 5.77%.
Lithium shares that fell included:
- Core Lithium Ltd (ASX: CXO) fell 3.66%
- Sayona Mining Ltd (ASX: SYA) slid 2.44%
- Lake Resources N.L. (ASX: LKE) fell 2.94%
Multiple ASX lithium shares appeared to follow the pattern of USA shares overnight. For example, Albemarle Corporation (NYSE: ALB) shares lifted 4.5%, while Livent Corp (NYSE: LTHM) rose 2.25% and Sociedad Quimica y Minera de Chile (NYSE: SQM) soared 5.7%.
Piedmont Lithium was a top performer among ASX shares today, and it also happens to have a NASDAQ listing.
Momentum in the USA may have been driven by an upbeat outlook from high-profile California governor Gavin Newsom. Speaking during a visit to the Lithium Valley, he said:
California is poised to become the world's largest source of batteries, and it couldn't come at a more crucial moment in our efforts to move away from fossil fuels. The future happens here first – and Lithium Valley is fast-tracking the world's clean energy future.
However, not all news on the lithium sector was bright overnight. According to Asian Metal Inc data reported on Bloomberg overnight, lithium prices in China have halved in four months. This could be due to more global supply and China's EV sector moderating, the publication noted.
That said, China's lithium prices have still exploded more than 1,300% in the last two years, before retreating.
Meanwhile, Pilbara Minerals also benefited from a positive broker update from Macquarie this morning. Macquarie has maintained an outperform rating on Pilbara shares with a $7.50 price target. As my Foolish colleague James noted, Macquarie remains positive on the lithium industry.
Further, Goldman Sachs is also optimistic about Allkem shares. In a note to investors on Monday, Goldman kept a buy rating on Allkem shares with a $15.40 price target.
Commenting on Allkem, Goldman said:
Allkem has one of the best production outlooks in our lithium coverage, with broad-based growth optionality, second only to Mineral Resources on an LCE basis when including downstream hydroxide production on an equity basis.
