S&P/ASX 200 Index (ASX: XJO) shares are down 0.4% to 8,929.7 points on Thursday.
The materials sector, including ASX lithium shares, is underperforming the broader market today, down 0.7%.
Lithium is among the best-performing commodities of 2026.
Lithium is well into a substantial recovery powered by the green energy transition and demand for batteries and electric vehicles (EVs).
The oversupply that smashed lithium prices for two years between mid-2023 and mid-2025 is over.
Producers that put their mines into care and maintenance, such as Core Lithium Ltd (ASX: CXO), are restarting as demand begins to outstrip supply worldwide.
Exemplying the trend, the lithium carbonate price is now up 43% in the calendar year to date (YTD), following a 58% increase in 2025.
With all this in mind, let's check out 3 ASX lithium shares with new ratings from Bell Potter this week.
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PLS Group Ltd (ASX: PLS)
The PLS Group share price is $6.27, down 1.5% today and up 45% YTD.
Formerly Pilbara Minerals, PLS Group's flagship mine is the Pilgangoora Lithium-Tantalum Project in the Pilbara area of Western Australia.
Bell Potter reiterated a hold rating on the market's largest ASX lithium share this week.
The broker said:
At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant.
P2000 and Colina development studies are being progressed, providing substantial organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.
The broker lifted its 12-month share price target on PLS Group shares from $5.50 to $6.15.
Liontown Ltd (ASX: LTR)
The Liontown share price is $2.07, down 3.1% today and up 27% YTD.
Liontown owns the Kathleen Valley project in Western Australia.
Bell Potter analyst Stuart Howe maintained a buy rating on this ASX lithium share this week.
Howe increased his expectations for growth in the lithium spodumene concentrate (6% Li2O) price by 11% for the rest of 2026, 7% in 2027, and 17% in 2028.
He also lifted Bell Potter's long-term spodumene concentrate price to US$1,500 per tonne, up from US$1,400 per tonne.
Howe said:
LTR is now in a net cash position. Over FY26-27, LTR will continue to ramp up and de-risk Kathleen Valley.
With current lithium price strength, LTR can rapidly generate cash to support incremental production expansions and shareholder returns.
Kathleen Valley is highly strategic in terms of scale, long project life and location in a tier-one mining jurisdiction.
LTR has offtake contracts with top-tier EV and battery OEMs.
Howe increased the 12-month target from $2.65 to $2.90 for Liontown shares.
Wildcat Resources Ltd (ASX: WC8)
The Wildcat Resources share price is 57 cents, up 3.1% today and up 51% YTD.
WC8 is progressing its hard rock lithium development, Tabba Tabba, in the Pilbara.
Analyst James Williamson commenced coverage on this ASX lithium share with a speculative buy rating this week.
Williamson said:
Tabba Tabba is the only large scale near-term Australian lithium development positioned to commence production during the current lithium price cycle.
The project is strategically located 80km from Port Hedland and WC8 enters financing discussions with 100% of offtake uncommitted.
The company trades on undemanding EV/Resource multiples compared with Western Australian spodumene producers.
We expect its share price will re-rate as Tabba Tabba reaches key feasibility and permitting milestones and transitions into development.
However, Williamson warns:
WC8 is an asset development company with forecast cash flows only; our Speculative risk rating recognises this higher level of investment risk and share price volatility.
Willamson gives this ASX lithium share a $1 valuation.
