Investors with an eye for lithium are likely familiar with Pilbara Minerals Ltd (ASX: PLS).
This ASX 200 mining stock operates the globally renowned Pilgangoora mine in the Pilbara region of Western Australia.
However, a lesser-known ASX lithium stock also been quietly building momentum in the same geological terrane.
More specifically, Wildcat Resources Ltd (ASX: WC8) has recently entered the radar after delivering a series of notable milestones at its Tabba Tabba lithium project.
And Sydney-based investment firm Shaw and Partners is paying attention.
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Budding ASX lithium stock
Wildcat's Tabba Tabba project lies some 50 kilometres from Pilbara Minerals' Pilgangoora mine.
Since acquiring the project in 2023, Wildcat has defined a 74 million tonne resource grading 1.0% lithium (Li2O).
And a recent pre-feasibility study (PFS) outlined an initial 17-year mine life and forecast $3.2 billion in free cash flow after tax.
In addition, exploration success at the nearby Bolt Cutter project appears to have strengthened Wildcat's growth profile.
Here, drilling revealed a series of encouraging lithium intercepts with 17 of 20 holes returning significant results.
This operational progress has not gone unnoticed by the market.
In the past six months alone, shares in this ASX lithium stock have bolted by 162% to $0.34 apiece at the time of writing.
For context, the S&P/ASX All Ordinaries Index (ASX: XAO) has risen by 3.18% across the same period.
But this powerful rally could just be getting started, according to Shaw and Partners.
"World-class" lithium project
In a research note released last week, Shaw and Partners summarised Wildcat's plans to fast-track the "world-class" Tabba Tabba towards production.
Here, the broker noted that the thick mineralisation at the project could facilitate a long-life mining operation, with its location also flagged as a major strategic advantage.
Tabba Tabba lies about 80 kilometres from Port Hedland, offering the potential for highly competitive transport costs compared to peers.
Access to the Pilbara region's established infrastructure and skilled workforce may further enhance the project's commercial appeal.
Shaw and Partners also believes that Wildcat's development timeline could align with a broader recovery in the lithium market.
It stated:
Wildcat is moving quickly toward production, having made its major discovery on already granted mining leases. This unusual status, combined with a signed Native Title Agreement, significantly truncates the regulatory and permitting timeline, allowing the company to target first production by FY28. This will allow Wildcat to capitalise on the current recovery in lithium prices as the market moves back into a period of structural tightness.
The broker pointed to an "overwhelmingly bullish" outlook for lithium demand, driven by EV adoption, increased power requirements in AI data centres, and growth in utility-scale energy storage systems.
It added:
As the market establishes an upward price trajectory following the 2023 cyclical slump, high-quality, high-grade developers such as Wildcat are well-positioned to benefit from this shift.
Share price in focus
Shaw and Partners initiated coverage with a buy rating on Wildcat, setting a target price of $0.70 per share for this ASX lithium stock.
This implies 106% upside potential from $0.34 per share at the time of writing.
