IGO share price rips 16% and leads the market today

IGO shares hit a new 52-week high today, as did Pilbara Minerals, Liontown Resources, and Core Lithium.

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Key points

  • IGO shares surged 15.6% to a 52-week high, driven by a rise in lithium prices due to increased global battery demand and China's support for the electric vehicle industry.
  • Spodumene and lithium carbonate prices have climbed significantly, boosting the performance of ASX lithium shares, including Pilbara Minerals, Liontown Resources, and Core Lithium.
  • IGO recently appointed Vanessa Guthrie as chair of its board and reported increased EBITDA of $19 million for the September quarter, reflecting stronger sector performance.

The IGO Ltd (ASX: IGO) share price is the fastest riser of the S&P/ASX 200 Index (ASX: XJO) on Thursday, flying 15.6% to a new 52-week high of $6.74.

The IGO share price is currently $6.63, up 13.7% amid no news from the company today.

However, IGO is one of several ASX lithium shares on the northwards march after commodity prices lifted in overnight trading.

Pilbara Minerals Ltd (ASX: PLS) shares leapt 8.7% to a new 52-week high of $3.73 in earlier trading on Thursday.

Liontown Resources Ltd (ASX: LTR) shares also lifted 11.4% to a 52-week high of $1.47.

The Core Lithium Ltd (ASX: CXO) share price climbed 20% to a 52-week high of 18 cents today, too.

IGO shares lift as lithium prices climb

The Spodumene Concentrate Index (CIF China) Price rose 0.92% overnight to US$984 per tonne, up about 18% over the past month.

The lithium carbonate price also lifted to a three-month high of US$11,711 per tonne, up 1.2% overnight and up 14% over the past month.

That's the highest price that carbonate has reached since its 52-week high above US$12,000 per tonne in late August.

Analysts at Trading Economics said improving global demand for batteries and power infrastructure has pushed commodity prices higher.

The analysts commented:

China signaled its latest support to the electric vehicle industry and lithium-rich energy storage systems with compensation mechanisms for power storage infrastructure, doubling EV charging capacity to 180 gigawatts by 2027.

Also, output of new energy vehicles in China rose by 33.1% in the first ten months of the year, with October sales reflecting 51.6% of the market share, the first majority for new energy vehicles on record.

However, supply may be about to increase as China looks to restart CATL's Jiangxi mine following a brief suspension.

Jiangxi produces 3% of the global lithium supply.

The analysts said:

On the supply front, markets continued to assess the magnitude of intervention that Beijing will enforce due to its anti-involution initiative.

Chinese authorities reportedly approved reserve reports for the restart of activity in CATL's Jiangxi mine following its brief suspension, enabling activity in the mine responsible for 3% of global supply.

What else is news with IGO?

Last week, IGO announced the appointment of non-executive director Vanessa Guthrie, who will chair the IGO board.

Guthrie will take up her post on 1 December, succeeding current chair, Michael Nossal, who will step down on 1 January.

Guthrie is also a non-executive director of Santos Ltd (ASX: STO), Lynas Rare Earths Ltd (ASX: LYC), and Orica Ltd (ASX: ORI).

On 30 October, IGO released its September quarter results, revealing a steady realised spodumene price of US$730 per tonne.

The company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $19 million, up from $5 million in the June quarter. 

Motley Fool contributor Bronwyn Allen has positions in Core Lithium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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