The Australian share market is having a stellar day on Wednesday.
And while most sides of the market are rising, one area is certainly catching the eye – the lithium industry.
At present, a number of ASX lithium shares are generating strong gains for their shareholders.
Here's a summary of the movers and shakers:
- The Allkem Ltd (ASX: AKE) share price is up 6% to $9.16
- The Core Lithium Ltd (ASX: CXO) share price is up 1.5% to 38 cents
- The James Bay Minerals Ltd (ASX: JBY) share price is up 10% to 37 cents
- The Liontown Resources Ltd (ASX: LTR) share price is up 2.5% to $1.54
- The Mineral Resources Ltd (ASX: MIN) share price is up 6% to $63.33
- The Pilbara Minerals Ltd (ASX: PLS) share price is up 6% to $3.73
Why are ASX lithium shares rocketing?
While some ASX lithium shares are rising following the release of news, the general driver of these gains has been a strong gain by their peers on Wall Street overnight.
Investors were flooding back into the beaten-down lithium industry after US inflation cooled, sparking hopes that interest rate rises are now over. This could be seen as good news for the electric vehicle market, which requires lithium for batteries, as higher rates have an impact on consumer spending.
What about news?
There is also some company-specific news in the industry today, such as Allkem receiving FIRB approval for its proposed merger with Livent Corp.
In addition, James Bay Minerals revealed elevated lithium readings from the portable LIBS analyser obtained from the Hawker and Gauntlet pegmatites. This is located within the company's Aero Property.