S&P/ASX 300 Index (ASX: XKO) lithium stocks are enjoying a stellar run today.
The big push higher comes after significant weakness in the sector this calendar year as lithium prices have retraced sharply from November's all-time highs.
But that weakness is nowhere to be found today.
Here's how these ASX 300 lithium stocks are performing in afternoon trade on Tuesday:
- Allkem Ltd (ASX: AKE) shares are up 15%
- Pilbara Minerals Ltd (ASX: PLS) shares are up 13%
- Liontown Resources Ltd (ASX: LTR) shares are up 63%
- Argosy Minerals Ltd (ASX: AGY) shares are up 14%
- Core Lithium Ltd (ASX: CXO) shares are up 14%
- Sayona Mining Ltd (ASX: SYA) shares are up 12%
- Allkem Ltd (ASX: AKE) shares are up 14%
- Leo Lithium Ltd (ASX: LLL) shares are up 12%
Image source: Getty Images
Why are these ASX 300 lithium stocks soaring today?
While all of the above ASX 300 lithium stocks are up over 10%, one of them stands out from the pack.
With shares up a whopping 63% today that would be Liontown Resources.
And that remarkable surge is throwing up some heady tailwinds for Liontown's rivals.
So, why is the Liontown share price shooting out the lights?
What's sending the Liontown share price rocketing?
Investors are bidding up the ASX 300 lithium stock after the company reported on a takeover proposal from United States-based lithium giant Albemarle Corporation (NYSE: ALB). Albemarle boasts a market cap of some US$25.7 billion.
The US lithium company lobbed an unsolicited, conditional, and non-binding proposal to acquire all of Liontown's stock for $2.50 per share.
However, the Liontown board rejected the offer, believing it undervalues the quality of the company's assets. Those include its core holding, the Kathleen Valley Lithium Project, which is nearing production.
According to Liontown, the project, located in Western Australia, "will be one of the world's largest lithium mines, supplying approximately 500,000 tonnes of 6% lithium oxide (Li2O) concentrate per year when it comes on stream in 2024".
Albemarle's $5.5 billion takeover offer shows clear enthusiasm about its mid and longer-term outlook for the battery-critical metal, giving a big leg up to all the above ASX 300 lithium stocks today.
