It hasn't been an easy time to be an investor in the lithium space, but things are certainly looking up for the industry today.
A number of ASX lithium shares are going gangbusters on Wednesday, much to the delight of their long-suffering shareholders.
ASX lithium shares going gangbusters
Here's a summary of some of the movers and shakers in the industry today:
- The Argosy Minerals Limited (ASX: AGY) share price is up 8% to 10.25 cents
- The Core Lithium Ltd (ASX: CXO) share price is up 7% to 19.25 cents
- The Latin Resources Ltd (ASX: LRS) share price is up 8.5% to 15.2 cents
- The Liontown Resources Ltd (ASX: LTR) share price is up 5.5% to 95 cents
- The Mineral Resources Ltd (ASX: MIN) share price is up 3% to $56.91
- The Piedmont Lithium Inc (ASX: PLL) share price is up 11% to 20.5 cents
- The Pilbara Minerals Ltd (ASX: PLS) share price is up 4% to $3.52
What's going on?
It appears that investors have been flooding back into ASX lithium shares on Wednesday in response to strong gains made by their global peers.
For example, Ganfeng Lithium jumped 8%, Tianqi Lithium leaped 7%, Albemarle rose 4%, and Lithium Americas Corp climbed 7% during overnight trade.
It's possible that some investors believe that the industry has been oversold and are now returning to pick up some bargains.
In addition, there has been some individual news giving at least a couple of these ASX shares a boost today.
As we covered here, Pilbara Minerals has executed an amendment to its existing offtake agreement with Chengxin Lithium Group. It notes that this materially extends and expands the supply of spodumene concentrate to a leading lithium chemical converter.
In 2024, Pilbara Minerals will supply an additional 60kt of spodumene concentrate, taking the total supply to 85kt. In 2025 and 2026, the company will supply 150kt of spodumene concentrate to Chengxin Lithium Group.
Elsewhere, Piedmont Lithium has released a corporate update this morning. It confirmed that it has completed a 27% reduction in its workforce in an effort to cut costs. It hopes to save US$10 million on an annual run rate.
