The Pilbara Minerals Ltd (ASX: PLS) share price is storming ahead today.
Pilbara shares are rising nearly 3.27% to $3.635. However, in earlier trade, Pilbara shares were up 5%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is lifting 0.92% today.
Let's take a look at why Pilbara Minerals shares are on the rise today.
Image source: Getty Images
What's going on?
Pilbara is not the only ASX lithium share in the green today. Mineral Resources Ltd (ASX: MIN) shares are up 3.27%, while Allkem Ltd (ASX: AKE) shares are rising 2.82%.
ASX lithium shares including Pilbara appear to be following in the footsteps of multiple US lithium shares overnight.
Lithium giant Sociedad Quimica y Minera de Chile (NYSE: SQM) rose 5.7% on the New York Stock Exchange overnight, Albemarle Corporation (NYSE: ALB) shares jumped 4.5% and Livent Corp (NYSE: LTHM) lifted 2.25%.
This followed a visit from high-profile California Governor Gavin Newsom touting lithium as "white gold". He said in quotes cited by CNBC:
The entire industry has moved in this space. We want to dominate. We see this as the greatest economic opportunity, and we want to dominate in this space, and we're doing that
Meanwhile, data from Asian Metal, cited by Bloomberg overnight, shows the lithium price surged by more than 1,300% in two years.
On the flip side, the data also showed the lithium price in China has halved in four months.
Higher global supply of lithium and China's EV sector moderating could be reasons for this fall, the publication noted.
Morgans has recently recommended investors buy the Pilbara Minerals share price and placed a $4.70 price target on its shares. As my Foolish colleague James reported, Morgans believes demand from China could lift from March.
However, as my Foolish colleague Sebastian reported yesterday, UBS has recently placed a neutral rating on Pilbara Minerals shares. UBS believes new lithium supply could double between 2022 and 2025, potentially weighing on the lithium price.
Pilbara Minerals share price snapshot
The Pilbara Minerals share price has risen 21% in the last year.
Pilbara has a market capitalisation of about $10.9 billion based on the current share price
