Is it too late to buy surging ASX lithium shares like Mineral Resources and Liontown?

Investors are piling into ASX lithium shares. Will the bull run continue in 2026?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • ASX lithium shares such as Mineral Resources and Liontown Resources have significantly outperformed the market, driven by rebounding global lithium prices over the past six months.
  • China's supply-side adjustments and surging demand for electric vehicles have contributed to the rise in lithium prices, benefiting Australian lithium stocks.
  • Experts suggest that ASX lithium shares have potential for continued growth into 2026.

ASX lithium shares, including Mineral Resources Ltd (ASX: MIN) and Liontown Resources Ltd (ASX: LTR), have been on a tear over the past half year.

Both stocks are posting strong intraday gains today.

And amid resurgent global lithium prices, they've smashed the benchmark returns these past six months.

Here's what I mean.

Since market close on 23 June, the All Ordinaries Index (ASX: XAO) has gained a modest 3.2%.

Over this same time, the Mineral Resources share price has surged 167.6%, while Liontown shares have leapt 129.1%.

Here's how some of the other fast-rising ASX lithium shares have performed over the last six months:

  • Pls Group Ltd* (ASX: PLS) shares are up 231%
  • IGO Ltd (ASX: IGO) shares have gained 102.7%
  • Core Lithium Ltd (ASX: CXO) shares are up 225.0%

(*Formerly Pilbara Minerals, with the company name changed in early December.)

Clearly, shareholders will be pleased with the past half-year's returns.

But those are all in the rearview now.

Which brings us back to our headline question.

Is it too late to buy these surging ASX lithium shares now?

Green stock market graph with a rising arrow symbolising a rising share price.

Image source: Getty Images

What's been lifting the Aussie lithium miners?

Before we look ahead, first it's important to note what's been sending Mineral Resources, Liontown, and the other Aussie lithium stocks rocketing.

As mentioned up top, that's largely due to sharply rebounding global lithium prices.

Indeed, we're seeing lithium carbonate prices trading at their highest levels in 18 months, while spodumene (a lithium bearing mineral) is trading at its highest levels in two years.

And we need look no further than China, the world's top lithium consumer, to discover the fuse that's been lit under ASX lithium shares these past months.

On the supply side, China's government sent lithium prices jumping last week following news that it had revoked a number of expired mining permits that were reportedly focused on lithium.

While that move is unlikely to have a material impact on global lithium production, markets nonetheless appear to be anticipating tighter supplies amid rising demand.

The lithium price and ASX lithium shares have also been catching tailwinds from expectations of increasing demand.

As Trading Economics notes, China recently said it aims to double the nation's EV charging capacity to 180 gigawatts by 2027. And with EV sales rapidly increasing in China, major lithium producer Ganfeng said it expects a 30% increase in lithium demand next year.

Can these surging ASX lithium shares keep rocketing in 2026?

Despite the huge gains over the last six months, Mineral Resources shares, Liontown shares, and indeed most all ASX lithium shares are still trading well below their 2022 and early 2023 highs.

And there are good reasons to believe they can keep outperforming in 2026.

According to Reg Spencer, a mining analyst at Canaccord Genuity (quoted by The Australian Financial Review):

Fundamentals of the lithium market are strong. We've seen pretty much every broker on the planet upgrade their forecasts so it's a great set-up heading into 2026.

The reality is that spodumene prices have doubled, chemical prices in China have almost doubled, and I still haven't seen any new Western greenfield projects sanctioned. And as the market gets bigger, you need more projects to come online to satisfy demand.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

More on Resources Shares

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

How many Rio Tinto shares do I need to buy for $10,000 a year in passive income?

Rio Tinto shares have a lengthy track record of paying two fully franked dividends a year.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Resources Shares

BHP shares vs Woodside shares: Which is the better buy?

Oil and copper are both important commodities, but I think one gives investors a more compelling long-term opportunity.

Read more »

Two workers working with a large copper coil in a factory.
Resources Shares

How high does Morgan Stanley think BHP shares will go?

Copper is the key to further growth in the BHP share price.

Read more »

A happy construction worker or miner holds a fistful of Australian dollar notes.
Resources Shares

Buying BHP shares today? Here's the dividend yield you'll get

Have BHP's dividends taken a back seat?

Read more »

A group of people push and shove through the doors of a store, trying to beat the crowd.
Resources Shares

Why this ASX 200 mining stock is sinking 6% today

Investors are taking profits after a huge run.

Read more »

Machinery at a mine site.
Record Highs

Rio Tinto shares hit fresh all-time high. Can they keep going?

The miner's shares have continued rallying higher on Thursday.

Read more »

A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.
Resources Shares

Up 152% in a year, guess which ASX All Ords silver share is leaping again on 'bonanza-grade' results

Investors are piling into the ASX silver share today. But why?

Read more »

Pile of copper pipes.
Resources Shares

Why has this ASX copper stock surged to a new 12-month high?

Big news has these shares on the move.

Read more »