Four of the fastest rising 10 stocks on the S&P/ASX 200 Index (ASX: XJO) today are lithium shares.

The best performer is diversified miner Mineral Resources Ltd (ASX: MIN), up 6.1% to $62.97 per share.

Next is lithium and nickel producer IGO Ltd (ASX: IGO), up 5.7% to $9.23 per share.

The Liontown Ltd (ASX: LTR) share price is 5.3% higher on Friday at $2.18.

The market's largest pure-play lithium company, PLS Group Ltd (ASX: PLS), cracked a new record at $6.14 today.

The PLS Group share price is currently $6.01, up 5.3%.

Among the smaller players outside the ASX 200, Elevra Lithium Ltd (ASX: ELV) shares hit a 52-week high of $10.39.

The Elevra Lithium share price is currently $10.31, up 11.9%.

Core Lithium Ltd (ASX: CXO) shares are up 9.4% to 37 cents apiece.

Lake Resources NL (ASX: LKE) shares are 7.6% higher at 9.9 cents.

What's driving ASX lithium shares higher?

Experts say the Iran war and ensuing global oil shock are reminding us of the value of electric vehicles (EV).

The lithium carbonate price has risen 9% this week and is up 43% year to date (YTD), according to Trading Economics data.

Analysts at Trading Economics say lithium prices are rising on a bullish future outlook.

Chinese EV manufacturer BYD announced it expects to sell more EVs this year due to the oil shock.

BYD has raised its 2026 sales forecast to 1.5 million units, up from the January estimate of 1.3 million units.

The analysts said:

The surge in crude oil and product prices since the start of March supported the outlook for larger economies to favor new energy vehicles, which use batteries that take lithium as a major input.

Demand also remained supported by Chinese investment in power infrastructure, recently exemplified by the announcement of higher power storage spending.

This was combined with Beijing stating it would double national EV charging capacity to 180 gigawatts by 2027, supporting lithium-rich energy storage systems.

In the meantime, Zimbabwe suspended exports of lithium concentrates and other raw materials to stimulate refining in the country.

Oil shock a tailwind for lithium prices

Lithium prices were already rebounding from a painful two-year downward spiral before the war in Iran began.

We have seen a rapid turnaround in lithium prices from mid-2025.

Supply/demand rebalanced after a long period of oversupply last year.

We also saw the impact of the green energy transition finally bleed through to markets in 2025.

Other commodity prices joined lithium in an upward surge in 2025 as the world began building new power infrastructure at scale.

The lithium carbonate price lifted to a two-year high of about US$26,200 per tonne in January.

It endured a short, sharp fall to just below US$20,000 in early February as part of a broader metals and minerals rout.

Today, the lithium carbonate price is US$24,850, representing a 43% year-to-date gain.

Lithium spodumene is up from about US$600 per tonne in June 2025 to US$2,415 per tonne today.

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A rebound in lithium carbonate prices and improving sentiment across the battery materials space appear to be driving renewed buying interest.

Here are 3 lithium stocks that are going gangbusters today.

Liontown Ltd (ASX: LTR)

The Liontown share price is up 8.95% to $1.978 in late afternoon trade.

That takes its gain to roughly 16% over the past week, marking an impressive short-term recovery for the Kathleen Valley developer.

Liontown is one of the ASX's largest pure-play lithium names, with its flagship Kathleen Valley project in Western Australia moving toward production. After a volatile 2025, investors appear to be repositioning as lithium prices show signs of stabilising.

Spot lithium carbonate prices in China have rebounded sharply in recent weeks, climbing back above CNY 150,000 per tonne. While still well below the 2022 highs, the recovery has been enough to reignite optimism across the sector.

With a market capitalisation of $6.26 billion and significant institutional support, Liontown is widely regarded as a key indicator of lithium sector sentiment on the ASX.

Core Lithium Ltd (ASX: CXO)

Core Lithium shares are also enjoying a strong session.

The Core Lithium share price is up 6.52% to 24.5 cents, extending its weekly gain to approximately 25%.

Core owns the Finniss Lithium Operation near Darwin. After facing operational and pricing headwinds during the lithium downturn, the company has been focused on cost management and balance sheet strength.

As lithium prices recover, Core's share price can move more aggressively as sentiment improves. And on the back of this, investors appear to be rotating back into smaller-cap lithium stocks as confidence builds around a potential sector recovery.

Lake Resources N.L. (ASX: LKE)

Rounding out the trio is Lake Resources.

The Lake Resources share price is up 7.90% today. Over the past week, shares have surged around 21%.

Lake is developing the Kachi Lithium Project in Argentina and has positioned itself as a direct lithium extraction hopeful. Like many pre-production developers, its share price has been highly sensitive to changes in lithium pricing and investor risk appetite.

While the project remains in development, improving sector sentiment is clearly driving strong short-term share price momentum.

Why lithium shares are moving

The common factor behind today's gains is lithium pricing.

After falling sharply through 2023 and 2024, lithium carbonate prices have rebounded in early 2026. Improving electric vehicle demand expectations, policy support in China, and supply discipline from producers have contributed to the recovery.

Lithium shares tend to respond quickly to changes in pricing, particularly among producers and developers with higher exposure to spot markets.

If prices continue to stabilise or move higher, sentiment across the sector could remain supportive in the near term.

The post Why these 3 ASX lithium shares are charging higher today appeared first on The Motley Fool Australia.

At the time of writing, the lithium developer's share price is down 15.39% to 11 cents. Even after today's sell-off, Lake Resources shares remain up 175% over the past 12 months, highlighting just how strong the longer-term rally has been.

So, why is the stock pulling back today?

A big year for Lake Resources investors

Lake Resources has been one of the ASX's better-performing lithium stocks over the past year as investor sentiment toward the sector improved.

The company is developing its flagship Kachi lithium project in Argentina's Catamarca Province, part of the world-renowned Lithium Triangle. Unlike traditional brine producers, Lake Resources plans to utilise direct lithium extraction (DLE) technology, which aims to deliver high-purity, battery-grade lithium with reduced water usage and a smaller environmental footprint.

That technology angle has helped Lake Resources stand out during the lithium recovery, particularly as automakers and battery manufacturers increasingly focus on sustainability.

Over the past year, investors have also responded positively to steady project progress, including engineering work, permitting updates, and infrastructure planning at Kachi.

Why are shares falling today?

Today's decline appears to be driven more by profit-taking and short-term sentiment than by any single negative announcement.

After such a strong run, pullbacks are common in early-stage resource stocks, especially when broader lithium prices turn volatile, or investors lock in gains.

Lithium carbonate prices have surged recently, with spot prices in China pushing to multi-year highs. While that is supportive longer term, sharp commodity moves can also increase short-term volatility in producer and developer share prices.

From a technical perspective, Lake Resources shares had moved quickly toward recent highs, leaving the stock vulnerable to a correction.

The long-term lithium story remains intact

Despite near-term weakness, the long-term demand outlook for lithium remains compelling.

Electric vehicle adoption continues to rise globally, while demand for energy storage is accelerating as grids transition toward renewable energy sources. Many industry forecasts suggest lithium supply could tighten again later this decade if new projects are delayed.

Lake's Kachi project remains one of the larger undeveloped brine resources globally, with a definitive feasibility study pointing to competitive operating costs and long mine life once in production.

That said, Lake Resources remains a high-risk investment. It is still pre-production, generating no revenue, and future outcomes depend on execution, funding, and lithium market conditions.

Foolish Takeaway

Today's drop in Lake Resources shares does not undo the gains made over the past year.

For investors with a long-term view on lithium and higher risk tolerance, this kind of pullback can be part of the journey. For more cautious investors, it highlights how quickly sentiment can shift in pre-production resource stocks.

It is important to note that managing risk and expectations should always be a top priority.

The post Lake Resources shares slide 15% today but are still up 175% in a year. What's going on? appeared first on The Motley Fool Australia.

Shares in the market's largest pure-play lithium producer, PLS Group Ltd (ASX: PLS) lifted 1.2% to a new 52-week high of $4.89 today.

The IGO Ltd (ASX: IGO) share price rose 2.1% to a 52-week high of $8.95.

Liontown Resources Ltd (ASX: LTR) shares lifted 3.5% to a 52-week high of $2.10.

The Core Lithium Ltd (ASX: CXO) share price rocketed 24% to a two-year high of 36 cents.

Lake Resources NL (ASX: LKE) shares rose 14.3% to a 52-week high of 16 cents.

Elevra Lithium Ltd (ASX: ELV) shares increased 1.9% to a 52-week high of $9.

Galan Lithium Ltd (ASX: GLN) shares rose 5.5% to a 52-week high of 38 cents.

The Delta Lithium Ltd (ASX: DLI) share price lifted 8.5% to a 52-week high of 25.5 cents.

Wildcat Resources Ltd (ASX: WC8) shares rose 10.3% to a 52-week high of 43 cents.

Pmet Resources CDI (ASX: PMT) shares rose 11.3% to a 52-week high of 69 cents.

The Winsome Resources Ltd (ASX: WR1) share price lifted 9.8% to a 52-week high of 56 cents.

Midas Minerals Ltd (ASX: MM1) shares rose 10% to a 52-week high of 66 cents.

Lithium prices have been steadily lifting since mid-2025 and leapt higher overnight.

Let's find out why.

Why are lithium prices rising again?

Trading Economics analysts say lithium prices are on the mend due to higher demand and lower supply worldwide.

The lithium carbonate price rose 3.75% overnight to a 19-month high of US$19,793 per tonne.

The Spodumene Concentrate Index (CIF China) Price lifted 1.69% to US$1,800 per tonne.

The Battery-Grade Lithium Hydroxide price rose 3.6% to US$16,213.76 per tonne.

There is greater demand globally for batteries and power infrastructure amid the green energy transition.

Additionally, sales of electric vehicles (EVs) in China are rising, with EVs outselling traditional cars for the first time last October.

Trading Economics reports that 'new energy vehicles' in China rose 20.6% annually to a record of 1.823 million units in November.

China has pledged to double EV charging capacity to 180 gigawatts by 2027.

Amid higher demand for lithium, China is also seeking to stabilise lithium prices by implementing measures to avoid over-capacity.

Analysts at Trading Economics said:

The Bureau of Natural Resources of Yichun, which includes the lithium mining hub in the Chinese Jiangxi province, stated it would cancel 27 mining permits early next year.

The move was consistent with the earlier suspension of activity in CATL's Jianxiawo lithium mine as the Chinese government aims to reduce capacity in many goods industries to prevent the ongoing race-to-the-bottom that has stirred deflationary pressures.

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At the time of writing, the lithium developer's shares are trading around 14 cents, up 16.67%.

In comparison, the S&P/ASX All Ords Index (ASX: XAO) is giving back its gains, down 0.3% for the day.

So why is the share price jumping while the broader market slips?

Let's take a look.

Lithium prices surge overnight

Lithium carbonate prices in China jumped by almost 7% in a single day, pushing prices to around CNY 111,900 per tonne.

That move has taken lithium prices to their highest level in roughly 19 months, marking a notable shift in sentiment after a lengthy downturn.

The rebound has been driven by tighter supply conditions and improving demand expectations. In China, mine suspensions and delayed permit approvals have begun to reduce excess supply, while expectations around electric vehicle production and battery demand have stabilised.

While the broader market is softer, the sharp rebound in lithium prices is driving renewed interest in lithium-exposed ASX stocks.

Why lithium prices matter

Lake Resources is still a development-stage lithium company, with no production or revenue at this stage. That means changes in lithium prices can have a meaningful impact on how the market views the company's long-term potential.

The company's key asset is the Kachi Lithium Project in Argentina's lithium triangle, a region central to global lithium supply. Kachi is planned as a brine-based project using direct lithium extraction (DLE) technology to lower costs and reduce environmental impacts.

Higher lithium prices generally make projects like Kachi more appealing. That can help improve the company's economics, funding prospects, and market confidence.

Recent progress worth noting

While there's no announcement today, Lake Resources has made progress in recent weeks.

Earlier this month, the company confirmed it had completed a key Environmental Impact Assessment (EIA) milestone for the Kachi project. This was an important regulatory step and keeps the project moving through Argentina's approval process.

What could drive the next move?

In the near term, Lake Resources shares are likely to move in line with lithium prices.

If lithium prices continue to hold or move higher, sentiment across the sector could improve, supporting stocks with development projects.

That said, lithium prices have proven volatile in the past. With further approvals, funding needs, and execution risks still ahead, I'm happy to watch from the sidelines for now.

The post This ASX lithium share is soaring 16% today. Here's why appeared first on The Motley Fool Australia.

The BHP Group Ltd (ASX: BHP) share price rose 2.1% to a 52-week high of $45.49 per share.

The Fortescue Ltd (ASX: FMG) share price lifted 3.2% to a 52-week peak of $23.38.

The Rio Tinto Ltd (ASX: RIO) share price increased 2.6% to a 52-week high of $141.13.

Several ASX gold shares also ascended to new highs.

The Evolution Mining Ltd (ASX: EVN) share price rose 4% to an all-time high of $12.63 per share.

Emerald Resources NL (ASX: EMR) shares reached a record $5.71, up 2.9%.

Bellevue Gold Ltd (ASX: BGL) shares lifted 4.3% to a 52-week high of $1.47.

ASX silver share Andean Silver (ASX: ASL) lifted 6.8% to an all-time peak of $2.34.

Some ASX lithium shares also recorded new one-year highs today.

They included Elvira Lithium (ASX: ELV) shares, up 2.9% to $6.67, and Lake Resources NL (ASX: LKE), up 19% to 9.4 cents.

ASX copper share Hot Chili Ltd (ASX: HCH) rose 7.8% to a 52-week high of $1.25.

The S&P/ASX All Ordinaries Index (ASX: XAO) closed 0.1% higher at 8,877.5 points on Thursday.

What's pushing ASX mining shares higher?

Stronger commodity prices are contributing to a surge in mining stocks this month.

Here is a snapshot of the strongest performers.

Macquarie's take on ASX mining shares

Earlier this week, Macquarie released a note on commodities and named its preferred ASX mining shares.

Among the diversified major miners, the broker likes Rio Tinto over BHP, but prefers South32 Ltd (ASX: S32) overall.

The broker has an outperform rating on South32 shares with a 12-month price target of $3.70.

Macquarie has a neutral rating on Rio Tinto and BHP shares with price targets of $130 and $43, respectively.

The broker has an underperform rating on Fortescue shares with a price target of $19.50.

Among the gold miners, Macquarie prefers Newmont Corporation CDI (ASX: NEM) over Northern Star Resources Ltd (ASX: NST).

However, the broker has an outperform rating on both ASX gold shares with price targets of $175 and $34, respectively.

Among ASX lithium shares, the broker prefers lithium and nickel producer IGO Ltd (ASX: IGO).

The broker has an outperform rating on IGO shares with a 12-month price target of $7.50.

It also has an outperform rating on Elvira Lithium with a price target of $7.

The broker is neutral on the largest ASX lithium share, PLS Group Ltd (ASX: PLS), with a price target of $3.80.

Capstone Copper Corp CDI (ASX: CSC) is the broker's preferred ASX copper share.

Macquarie has an outperform rating on Capstone Copper with a share price target of $17.

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Meantime, the S&P/ASX 200 Index (ASX: XJO) is falling heavily, down 1.38% to a four-month low of 8,516.9 points.

Lithium prices are on the rise, with the carbonate price reaching its highest level in 14 months overnight.

Here is what's happening with ASX lithium shares today.

ASX lithium shares up while ASX 200 falls heavily

The Pilbara Minerals Ltd (ASX: PLS) share price rose 5.6% to a new 52-week high of $4.18 this morning.

Lithium and nickel producer IGO Ltd (ASX: IGO) ripped 8.2% to a 52-week peak of $7.35 per share.

The Liontown Resources Ltd (ASX: LTR) share price lifted 7.5% to a 52-week high of $1.57.

Core Lithium Ltd (ASX: CXO) shares are up 4.3% to a 52-week peak of 24 cents.

The Lake Resources NL (ASX: LKE) share price lifted 12.5% to a 52-week high of 6.3 cents.

Galan Lithium Ltd (ASX: GLN) shares are up 10% to a 52-week high of 22 cents.

Elevra Lithium (ASX: ELV) shares rose 10.8% to a 52-week high of $5.86.

Diversified miner Mineral Resources Ltd (ASX: MIN) rose 5.4% to $51.25, not far off the 52-week high of $52.69 it set last week.

Where to next for lithium prices?

ASX lithium shares are rising as demand for lithium to power batteries and new infrastructure increases, and China provides new support to its electric vehicle industry amid higher sales in 2025.

The Spodumene Concentrate Index (CIF China) Price rose 1.79% to US$1,024 per tonne overnight, up more than 20% over the past month.

The Battery-Grade Lithium Hydroxide price rose 1.05% to US$9,606.73, up 5.8% over the past month.

The lithium carbonate price is US$12,120.57 per tonne, up 16.4% over the past month and now at its highest level in 14 months.

Macquarie is bullish on lithium prices and asserts that a new price cycle is underway.

In a new note, the broker says:

Our constructive lithium view has been confirmed; however major lithium equity names are outpacing underlying Li prices.

We see opportunities for spot spodumene price to attain US $1,200-1,300/t early next year, with hurdles for further increases.

We believe CATL restart newsflow presents near-term downside, promoting profit taking; however this may be a longer-term buy-the-dip opportunity.

CATL's Jiangxi mine, which produces 3% of the global lithium supply, is set to recommence production following a brief suspension.

Macquarie has an outperform rating on three ASX lithium shares: IGO, Elevra Lithium, and Pmet Resources CDI (ASX: PMT).

The broker warns that Pilbara Minerals and Mineral Resources shares are trading at above-market implied lithium prices today.

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The Pilbara Minerals Ltd (ASX: PLS) share price lifted 1.9% to a new 52-week high of $3.85 today.

The IGO Ltd (ASX: IGO) share price rose 3% to a new 52-week high of $6.92.

Liontown Resources Ltd (ASX: LTR) shares ascended 3.5% to a 52-week high of $1.50.

The Core Lithium Ltd (ASX: CXO) share price climbed 15.8% to a 52-week high of 22 cents.

Lake Resources NL (ASX: LKE) shares rose 7.8% to a 52-week high of 5.5 cents.

Galan Lithium Ltd (ASX: GLN) shares increased 5.3% to a 52-week high of 20 cents.

The ASX lithium shares are rising due to higher lithium prices, fueled by improving global demand for batteries and power infrastructure.

Let's find out more.

Lithium prices rise on renewed demand for batteries

The Spodumene Concentrate Index (CIF China) Price rose 1.73% overnight to US$1,001 per tonne, up about 21% over the past month.

The Battery-Grade Lithium Hydroxide price rose 0.26% overnight to US$9,453.92 per tonne, up about 4.2% over the past month.

The lithium carbonate price increased to a three-month high of US$11,859 per tonne, up 1.3% overnight and up 16% over the past month.

That's the highest lithium carbonate price since it cracked a new 52-week high above US$12,000 per tonne in late August.

Analysts at Trading Economics explained the increase in lithium prices:

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.

What else is happening with these ASX lithium shares?

Core Lithium held its annual general meeting this morning, where chair Greg English said:

… there have been some recent signs of improvement in sentiment towards lithium which we would like to see continue.

The junior producer also released a revised restart plan and ore reserve estimate for Grants at its flagship Finniss Project this week.

English added:

Delivery of the Restart Study outcomes will make Finniss more insulated from the lithium price cycle.

Liontown Resources announced it has partnered with Metalshub to launch its first spodumene concentrate auction.

The move will streamline and digitalise spot sales of spodumene concentrate from its Kathleen Valley Project to global customers.

Bell Potter reaffirmed its buy rating on Liontown shares following the announcement and raised its 12-month price target from $1.30 to $1.52.

Lake Resources gave a presentation at the Noosa Mining Investor Conference this week.

The company said:

Lithium demand [is] expected to double between 2025 and 2035, driven by continued strong EV demand in Asia and Europe, Middle East BESS boom and additional policy actions.

Pilbara Minerals and IGO had no news updates for investors this week.

Bell Potter has a sell rating on Pilbara Minerals with a $2.65 price target, and a hold rating on IGO shares.

Christopher Watt from Bell Potter commented on IGO shares:

Guidance moving forward is cautious, and full integration of recent acquisitions is pending. While the theme appeals, the earnings outlook needs more clarity to warrant a re-rating.

Galan Lithium also delivered a presentation at the Noosa Mining Investor Conference.

The post 6 ASX lithium shares streak to new 52-week highs appeared first on The Motley Fool Australia.

The lithium carbonate price is now at its highest point in 12 months at US$11,953.96 per tonne.

Trading Economics analysts explain the rise:

Lithium carbonate prices surged further toward CNY 85,000 per tonne in August, erasing this year's slump to the highest in one year as lower output from key mines countered oversupply worries.

The Chinese government pledged capacity cuts to major industries that have suffered from deflationary pledges in recent years, driving investors to bet on an outlook of lower lithium supply out of the world's top refined lithium producer.

The analysts said the world's top battery producer, Contemporary Amperex Technology Co. Ltd (CATL), suspended activity in its Jianxiawo mine after failing to get a permit extension.

The Jianxiawo mine produces about 5% of the global supply.

Oversupply has been a wet blanket for lithium prices over the past few years.

Last year, lithium production worldwide was 35% higher.

This was largely due to strong production in China, Indonesia, and the Democratic Republic of the Congo.

Many lithium miners have been reluctant to close down their mines, despite dramatically lower lithium prices, for fear of losing market share and key business relationships with governments and battery producers.

The 24% increase in the lithium carbonate price over the past month has led to mixed results among ASX lithium shares.

ASX lithium shares over the past month

Over the past month:

• Sayona Mining Ltd (ASX: SYA) shares are up 30%
• Mineral Resources Ltd (ASX: MIN) shares are up 16.4%
• Pilbara Minerals Ltd (ASX: PLS) shares are up 15.3%
• Core Lithium Ltd (ASX: CXO) shares are up 8.3%
• Lake Resources N.L. (ASX: LKE) shares are down 30%
• Liontown Resources Ltd (ASX: LTR) shares are down 9.7%
• Rio Tinto Ltd (ASX: RIO) shares are down 5.7%
• IGO Ltd (ASX: IGO) shares are down 1.7%

Top broker Citi warns that this month's run for the lithium carbonate price may be short-lived.

The Australian Financial Review (AFR) reports that Citi's commodity desk has told clients to start building "bearish exposure" to any further rallies in the lithium carbonate price.

Meanwhile, some new broker notes reveal what the experts think of some specific ASX lithium shares.

Let's take a look.

Recent broker ratings on ASX lithium shares

Liontown Resources Ltd (ASX: LTR)

Bell Potter maintains a speculative buy recommendation on this ASX lithium share with a reduced 12-month price target of $1.05.

On Friday, the Liontown share price closed at 84 cents. The broker's price target implies 25% potential upside from here.

Bell Potter says Liontown's 100% owned Kathleen Valley lithium project is highly strategic in terms of scale, mine life, and location.

Last week, Liontown announced the early closure of its oversubscribed share purchase plan (SPP), targeting $20 million.

The SPP followed a successful $266 million capital raise at 73 cents per share to fortify Liontown's balance sheet.

IGO Ltd (ASX: IGO)

On The Bull last week, Toby Grimm of Baker Young revealed his sell rating on IGO shares.

This ASX lithium share closed at $5.12 on Friday.

IGO owns lithium projects and the Nova nickel, copper, and cobalt operation in Western Australia.

Grimm comments:

IGO continues to hold a significant stake in Australia's premier lithium mine Greenbushes in Western Australia.

The ownership structure is a disadvantage for IGO, in our view, and its attempt to gain greater control via lithium hydroxide processing appears uncertain.

In our opinion, IGO carries outsized strategic risk, so we prefer other names in the critical minerals space.

IGO reports its next lot of results this Thursday, 28 August.

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Investor sentiment remains weak, but it's not concentrated on Lake Resources. The entire ASX lithium basket is down, as lithium prices recently hit multi-year lows.

Despite the company's efforts to stabilise its financials and progress its flagship Kachi Lithium Project, the market appears to think otherwise.

The stock is down a further 2.13% on Thursday at the time of writing after the company held its annual general meeting (AGM) today. Here are the key takeouts.

Lake Resources share price under pressure

They say pressure forms diamonds, but nothing is shining with the Lake Resources share price right now. The lithium miner's most recent quarterly update didn't do much to restore investor confidence either.

In its Q3 2024 cash flow report, the company revealed that it burned through $6 million in cash for its operating activities despite raising $2.5 million through its at-the-market (ATM) facility.

At the end of the quarter, cash and cash equivalents stood at $17.5 million, providing some breathing room and longevity to operations.

But falling lithium prices have been an anathema to the sector this year, resulting in sharp repricings of most stocks involved. As such, this continues to weigh on Lake Resources shares.

Adding to the headwinds, the company is undertaking significant cost-cutting measures, including reducing its global workforce and selling three non-core lithium brine assets in Argentina.

These were settled for US$9 million, about 11% of the company's current market value.

Lake Resources chair Stu Crow attempted to extinguish the flames in his address at the AGM.

[R]ecent news on the lithium market has focused on the negatives – falling prices, reduced investment, projects being curtailed or put on care and maintenance. In such circumstances, you might ask why Lake should continue advancing our key project?

The simple answer is that the longer-term outlook remains bright. In mining, it is often said that the solution to low prices is low prices.

Most analysts point to falling supply and rising demand leading to supply deficits by the end of the decade

What's happening with the Kachi Project?

Crow touted Lake's flagship Kachi Project as "truly a tier-one project".

He said Kachi's mine life was 25 years, and the plan was to extract lithium sustainably via direct lithium extraction (DLE) technology.

The company recently completed a Definitive Feasibility Study, showing strong project economics, and submitted an Environmental Impact Assessment for production.

Plus, things might be looking up for the site if Crow's comments are anything to go by:

The maiden Ore Reserve announced for Kachi on 19 December last year showed the mine plan can deliver sufficient lithium brine for a 25 ktpa operation over the 25-year life of mine.

In another project milestone, Lake submitted in March 2024 the Production Environmental Impact Assessment for Kachi. It highlighted Kachi's minimal freshwater consumption and its significant economic and social benefits for our hosts, Catamarca Province.

These are significant achievements for our key project that we all should be proud of.

Despite these achievements, concerns about the near-term lithium oversupply and falling prices are overshadowing the project's potential.

As such, a reversal in lithium prices could act as a catalyst for Lake Resources' share price. Until then, the company is at the mercy of the market and demand for batteries and electric vehicles (EVs).

Foolish takeaway

The Lake Resources share price is in the red today following the company's AGM. Zooming out, lithium prices – and the drivers of these – continue to weigh the stock down heavily.

Shares in Lake Resources have fallen more than 70% over the past 12 months.

The post The Lake Resources share price is sinking yet again. Here's why appeared first on The Motley Fool Australia.

Shares of Lake Resources are currently swapping hands at 6.5 cents, about 3% lower as the market digests the company's figures.

Zooming out, the stock is up more than 62% in the past month. Here's what it posted.

Lake Resources share price slips on Q3 update

Lake Resources' quarterly report highlighted several key metrics, including the following:

• The company reported $5.9 million in net cash used in operating activities for the quarter
• Lake raised an additional $2.5 million through its At-the-Market (ATM) facility
• Cash and cash equivalents ended the quarter at $17.5 million, providing a buffer for upcoming activities
• The company continued efforts to streamline costs, resulting in a new multi-year low for quarterly outgoings
• Lake secured approximately $1.1 million from the sale of non-core equipment at the Kachi Project

What else happened in Q3?

The Lake Resources share price exploded at the end of the quarter, rallying from 4 cents to 7.8 cents apiece from October 1 through 18.

Such was the extent of the move that the ASX contacted Lake, seeking clarifications. Nothing company-specific was announced, but lithium stocks did catch a bid during the period.

Aside from this, Lake continued developing its flagship Kachi Project.

This included work on the Exploitation Environmental Impact Assessment (EIA) and progress on Front-End Engineering Design (FEED) needed to deliver power to the site. The FEED is part of its partnership with YPF Luz, relating to the construction of a high voltage power line to power Kachi.

Lake left the quarter with no debt on its balance sheet but held $17.5 million of cash and equivalents across various currencies.

It also raised $2.5 million via an ATM facility with Acuity Capital, issuing 65 million new shares to facilitate the subscription.

What's next?

Looking ahead, Lake Resources plans to continue reducing cash outflows and maximising the efficiency of its capital.

The company is in ongoing discussions with potential strategic partners for Kachi and has hinted at further non-core asset sales. According to the release:

Calendar year 2025 outgoings are expected to be materially lower than calendar year 2024, primarily benefiting from the organizational right-sizing achieved in 2024 and the financial benefit of the Company's active working capital management.

Lake's recent replenishment of annual placement capacity under Listing Rule 7.1 and the Company's ongoing self-advised process for the potential sale of non-core assets and lithium tenements located in Jujuy and Catamarca Provinces are both important potential sources of capital to improve our liquidity runway.

Lake Resources share price snapshot

The Lake Resources share price is in the red today as investors digest its Q3 update. While there are plenty of takeouts, the market's reaction suggests that there may have been value left on the table.

In the last 12 months, the stock is down more than 59%.

The post Lake Resources share price sinks on quarterly cash flow news appeared first on The Motley Fool Australia.

Four ASX shares that are failing to follow the market higher today are listed below. Here's why they are falling:

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down almost 4% to 7.5 cents. This may have been driven by profit taking following very strong gains from the lithium developer's shares on Thursday and Friday. In fact, even after accounting for today's pullback, Lake Resources' shares are up 47% since this time last week. The gains have been so large that the company was hit with a speeding ticket. When quizzed about the rampant buying, management responded: "LKE is not aware of any information concerning it that has not been announced to the market, which, if known by some in the market, could explain the recent trading in its securities."

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down 12% to $40.41. This follows allegations that the mining and mining services company's founder and CEO, Chris Ellison, was running a tax evasion scheme. The company responded to the reports, stating: "The Board is committed to robust and transparent corporate governance. It has engaged external legal counsel to conduct an investigation into this matter and advise the Board. Mr Ellison has cooperated with the investigation and the investigation is well-advanced." It also added that it "has full confidence in Mr Ellison and his leadership of the MinRes executive team."

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is down almost 5% to $14.42. Investors have been selling this furniture retailer's shares today following the release of a trading update at its annual general meeting. Nick Scali warned that freight costs have spiked during the first half and are weighing on its gross margins. As a result, it now expects its first half net profit after tax for Australia and New Zealand to be in the range of $30 million to $33 million. This compares to $43 million in the prior corresponding period, with represents a 23% to 30% reduction lower year on year.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 11% to $108.67. Much like Mineral Resources, this decline has also been driven by a media scandal. This one relates to the logistics solutions company's CEO, Richard White. In response, the company said: "The Board is currently reviewing the full range of matters raised in today's media reports and is actively seeking further information and taking external advice. The Board will continue to meet regularly to consider and monitor the situation, and keep the market updated in line with its continuous disclosure obligations. It is conscious of the potential impacts on the Company and will carefully evaluate all relevant factors in its assessment."

The post Why Lake Resources, Mineral Resources, Nick Scali, and WiseTech shares are dropping appeared first on The Motley Fool Australia.

And shareholders owe much of those welcome gains to the new fiscal and monetary stimulus measures announced by China's government and central bank in recent weeks.

To give you some idea, here's how these Aussie lithium miners have tracked over the past month, a period that's seen the All Ordinaries Index (ASX: XAO) gain 2.4%:

• Core Lithium Ltd (ASX: CXO) shares are up 17.0%
• IGO Ltd (ASX: IGO) shares are up 3.3%
• Liontown Resources Ltd (ASX: LTR) shares are up 25.4%
• Sayona Mining Ltd (ASX: SYA) shares are up 60.0%
• Lake Resources (ASX: LKE) shares are up 30.0%
• Mineral Resources Ltd (ASX: MIN) shares are up 31.8%
• Pilbara Minerals Ltd (ASX: PLS) shares are up 0.4%

Now, the latest stimulus announcement out of China on Saturday looks to have underwhelmed investor expectations.

However, in potentially good news for ASX lithium shares, Chinese officials indicated more support measures may be forthcoming in the weeks ahead.

And according to Janus Henderson's Darko Kuzmanovic, it won't be ASX iron ore or coal miners that benefit the most from any big boosts to Chinese stimulus measures, but rather those miners focused on battery and technology-related metals.

Why ASX lithium shares could be set for better days

"Markets are used to stimulus that drives demand for iron ore and coal through industrial activity and infrastructure development, but I doubt that will happen at the level it has in the past," Kuzmanovic said (courtesy of The Australian Financial Review).

Rather, the fund manager expects ASX lithium shares and copper miners could reap some of the bigger rewards.

Kuzmanovic explained:

China is undertaking a shift away from urbanisation spend to higher-value manufacturing, which you can see in its battery manufacturing for electric vehicles and building its own superconductor chips – so it's deploying more innovation technology to its next phase of economic growth.

The implications of that are bulk commodities like iron ore won't have the demand they've had in the past, but things like copper, nickel and other battery materials will have demand drivers going forward.

Commenting on ASX lithium shares, he said much of the pain has come amid the ongoing global oversupply of the battery-critical metal.

"Lithium stocks look oversold, and we're seeing a bottom as far as the commodity prices is concerned," he said.

Kuzmanovic added:

The issue isn't demand, that's actually pretty solid, it's really the short-term oversupply – there's just too much capacity coming up. We think the thesis for lithium and the EV transition is still there, it's just been delayed a little bit.

The post Why ASX lithium stocks could run on China's BIG move appeared first on The Motley Fool Australia.

Zooming out wider still, Lake Resources is down from $2.31 in April of 2021, tying in closely to the price of lithium.

Shares in the lithium player are currently priced at 4.1 cents per share, having spiked more than 9% in the past month.

With global lithium prices currently in a slump, does the Lake Resources share price have more pain to come? Let's see what the experts think.

Kachi Project: The crown jewel

The Kachi project, located in Argentina is Lake Resources' flagship asset. Along with lithium prices, the Lake Resources share price is sensitive to updates at Kachi.

The company's 2024 annual report, posted in September, noted several recent developments at the site.

It has completed a definitive feasibility study (DFS) for the first project's first phase.

Findings from the DFS estimate a net present value (NPV) of US$2.3 billion for Kachi, translating to a more than 20% rate of return for the miner.

Lake has a market value of approximately $65 million at the time of writing, making the DFS findings significant in terms of size.

The Kachi project is also expected to generate US$21 billion in revenue and US$16 billion in pre-tax earnings over its first phase.

In its annual report, CEO David Dickson said the findings support the company's "credible and de-risked execution plan to support delivery of the project".

Lake also raised $2.5 million earlier this year through an at-the-market subscription agreement with Acuity Capital.

The funds will be rolled into further developments at the Kachi project, adding a fresh capital injection to advance operations.

Lithium market woes hit Lake Resources' share price

The global lithium market has faced significant pressure in 2024, with prices falling in continuation of a downtrend in situ since late 2022. This has impacted the Lake Resources share price.

Lithium carbonate prices hit a three-year low of CNY 71,500 per tonne in September.

This comes after the battery metal was trading at CNY 174,500 per tonne in October last year, illustrating the sharp declines.

They have since recovered slightly to CNY 75,500 per tonne at the time of writing.

According to Trading Economics, this was driven by oversupply and dwindling demand for electric vehicles (EVs).

The flood of new supply relative to dwindling demand for new electric vehicles, the main use for lithium, drove carbonate prices to fall 21% this year after an 80% plunge in 2023. 

Meanwhile, Lake Resources non-executive chair Stuart Crow said lithium was in a bull market in "the short term" during the annual report.

In the short term, lithium is in a bear market, with prices having fallen significantly and new projects and investments being curtailed as a result. Ultimately though, we believe that the market will rebalance, with the long-term structural thematic underpinning lithium demand remaining intact.

Lake Resources share price at a turning point?

Despite these struggles, some analysts believe that the market may be close to a turning point.

Citi, for instance, forecasts a rise in lithium prices over the next two to three months to potentially nudge US$14,000 per tonne after Chinese producer CATL suspended its operations in September.

At the current exchange rate, this equals CNY 98,258 per tonne.

Meanwhile, Trading Economics also notes experts project a potential 50% rise in the lithium price. The view is that Chile – a major lithium producer – aims to double its output over the coming decade.

As "the race to secure battery metals" stretches higher, this could strengthen the market.

Crow echoes the sentiment on the demand side:

Lithium demand is expected to double by 2026 and triple by 2030 from 2023 levels, presenting a compelling case for investment.

Importantly, the lengthy lead times in developing new projects and recent curtailments could lead to lithium raw material deficits emerging from 2028 and extending to around 1.8 million tonnes LCE by 2040.

In short, the world needs 100 Kachi Phase One projects to balance the market by 2030.

On the broker side, the Lake Resources share price is rated a strong buy from consensus, according to CommSec.

Foolish takeaway

So, has the Lake Resources share price hit a bottom? It's difficult to say. The company's fundamentals, particularly the Kachi project, are in reasonable shape.

However, the broader lithium market continues to face unsettled headwinds.

Despite this, brokers are bullish, with a consensus buy rating on the stock. And for the company, it all depends on what lithium prices do from here.

The view from many experts on the price of lithium moving forward is also a positive one – many believe the battery metal can carry higher prices again. Time will tell.

In the last 12 months, Lake Resources is down more than 75%.

The post Down 69% in 2024, has the Lake Resources share price hit a bottom? appeared first on The Motley Fool Australia.

The S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.75% while the S&P/ASX 200 Materials Index (ASX: XMJ) is the worst-performing market sector, down 0.15%.

Here is the state of play among ASX lithium shares in mid-afternoon trading today:

• Mineral Resources Ltd (ASX: MIN) shares are up 7.66% to $37.81
• Pilbara Minerals Ltd (ASX: PLS) shares are up 5.62% to $2.82
• IGO Ltd (ASX: IGO) shares are up 4.78% to $5.38
• Arcadium Lithium CDI (ASX: LTM) shares are up 4.05% to $3.85
• Liontown Resources Ltd (ASX: LTR) shares are up 3.91% to 72 cents
• Lake Resources N.L. (ASX: LKE) shares are up 2.5% to 4.1 cents
• Core Lithium Ltd (ASX: CXO) shares are steady at 10 cents
• Sayona Mining Ltd (ASX: SYA) shares are steady at 2.7 cents

Perhaps a new lithium price prediction from Citi has ASX lithium shares investors feeling more positive today.

Let's investigate.

ASX lithium shares up amid bright new forecast

According to The Australian, Citi now predicts about a 20% to 25% rise in lithium commodity prices over the next two to three months.

Citi thinks a supply curtailment resulting from CATL suspending operations of its lepidolite mines will boost commodity values.

Citi says CATL's output accounts for about 6% of total lithium carbonate equivalent (LCE) supply. The broker also notes that recent closures and re-stocking has rebalanced the Chinese lithium market.

Citi analyst Kate McCutcheon said:

We expect investors, both inside and outside of China, to cover their shorts over the coming weeks on the back of recent supply curtailments from CATL's lepidolite cuts, inventory drawdowns, and seasonal peak demand.

We are likely to see … prices rally to $US13,000-$US14,000 a tonne on COMEX, up from around $US11,000 at present.

Citi has lifted its 0 to 3-month price targets for lithium to $US14,000 per tonne for carbonate and $US14,200 per tonne for hydroxide.

What's the longer-term view on lithium prices?

Citi's latest forecast is short-term. While it's significant, at 20% to 25%, it may also be short-lived.

Therefore, retail investors may not see it as a reason to buy ASX lithium shares, especially if they prefer a long-term buy-and-hold strategy for their portfolio.

There has been a persistent oversupply of lithium in 2023 and 2024, which has hurt commodity values and taken ASX lithium share prices down with them.

The emergence of low-cost lepidolite in China hasn't helped, either.

As my colleague James reported last month, the lithium carbonate-China price reached an average of US$32,694 per tonne in 2023. By the start of this year, it had crashed to US$11,867 per tonne.

The lithium hydroxide-China price fell from an average of US$32,694 per tonne in 2023 to US$9,899 in January. The spodumene 6% price fell from US$3,712 per tonne in 2023 to US$1,000 per tonne in January.

Goldman Sachs is predicting average prices in 2024 of US$11,683 per tonne for lithium carbonate-China, US$11,463 per tonne for lithium hydroxide-China, and US$995 per tonne for spodumene 6%.

You can check out Goldman's longer-term forecasts through to 2027 here.

According to the latest analysis from Trading Economics:

Lithium carbonate prices steadied at the CNY 75,000 per tonne mark in September, the lowest in over three years, due to persistent concerns about an oversupplied market.

Lithium miners and producers in China continued to expand capacity and hunt for new reserves, with market players expecting global supply to soar by nearly 50% this year.

This magnified the current supply surplus amid the fallout of the battery glut due to government subsidies for firms across the supply chain.

Additionally, hopes of eventual balance in the market drove Chile to signal it would aim to double output over the next decade, and the race to secure battery metals drove China to expand projects in Africa.

The post ASX lithium shares could be set for a bull run if this 25% forecast is right appeared first on The Motley Fool Australia.

The company will shut down half of its lithium processing facility in Western Australia and halt construction on further expansions, leading to 300 job losses.

This move comes in response to a prolonged slump in lithium prices, which are down more than 85% from their peak. Currently, the battery metal is priced at CNY 83,500 per tonne.

The spillover has had mixed impacts on the basket of ASX lithium shares today. Here is the spread at the time of writing:

• Pilbara Minerals Ltd (ASX: PLS) shares are up nearly 5%
• Core Lithium Ltd (ASX: CXO) shares are down 1.5%
• IGO Ltd (ASX: IGO) shares are up less than 0.5%
• Liontown Resources Ltd (ASX: LTR) shares are down 2.5%
• Sayona Mining Ltd (ASX: SYA) shares are down 1.6%
• Lake Resources (ASX: LKE) shares have surged over 4%
• Latin Resources Ltd (ASX: LRS) are down 1.7%
• Mineral Resources Ltd (ASX: MIN) shares are down less than 0.5%

Let's take a look at what's unfolded today.

Market conditions create headwinds

The price of spodumene concentrate, a primary source of lithium, has plummeted more than 85% from its 2022 highs.

This sharp decline has pressured many lithium producers and explorers, leading to job losses and operational shutdowns across the sector. ASX lithium shares have borne the brunt of this.

This is despite government support for the sector.

According to The Australian Financial Review, the government had recently announced a $17.6 billion critical minerals production tax incentive to attract processing facilities to Australia.

Albemarle noted this in its decision to size down operations here in Australia.

[The. company] today announced it has launched a comprehensive review of its cost and operating structure, as well as immediate asset actions at its Kemerton lithium processing site in Australia.

The company is taking these steps to proactively respond to ongoing industry headwinds, particularly in the lithium value chain, so it can preserve long-term competitiveness. 

The question is, what's next for Albemarle? The company says it plans to focus on ramping up its existing facilities and will explore further expansion only if market conditions improve.

Last year, the company also acquired Western Lithium, which holds exploration tenements in the Pilbara.

The mining giant will maintain a workforce of 460 people at its Kemerton plant and 40 staff in its Perth office. It still intends to begin an exploration program in Australia later this year.

Impact on ASX lithium shares

The overall impact on the ASX lithium basket has been mixed, as shown in the list above. Some stocks are up, and some are down. So there's hardly been a ripple effect.

It's also important to recognise that the market might need some time to digest the impacts fully.

Whilst not an ASX lithium share, Monadelphous Group Ltd (ASX: MND) has been directly impacted by Albemarle's decision.

The engineering company's contract for construction at Albemarle's Kemerton project has been terminated, leading to an estimated $200 million reduction in its current construction work-in-hand.

This news has already caused a more than 5% drop in Monadelphous' share price.

Takeaway

ASX lithium shares continue to show mixed results in 2024. The price of the underlying commodity, in addition to moves such as Albemarle's today, underscores the short-term challenges in the sector.

In my opinion, the market will need a few days to fully digest the magnitude of the decision.

The post Global lithium giant Albemarle has big news: Here are the ASX shares being impacted appeared first on The Motley Fool Australia.

Despite this there's some light in the ASX lithium basket today, with two shares catching a bid on positive announcements – Lake Resources N.L. (ASX: LKE) and Latin Resources Ltd (ASX: LRS).

Lake Resources is trading 5% higher at 3.6 cents per share at the time of writing. Meanwhile, Latin Resources had surged 3% higher on the day but now trades flat at 15.55 cents apiece.

Let's dive into the announcements.

ASX lithium share raises $2.5 Million

Lake Resources announced a successful $2.5 million capital raise through an at-the-market subscription agreement with Acuity Capital. The firm is said to specialise in these kinds of transactions.

The capital raise involved issuing 65 million fully paid Lake Resources ordinary shares at an issue price of 3.85 cents apiece. This is slightly below the 15-day volume-weighted average price of 3.88 cents, according to the update.

Funds raised from the agreement will be used to bolster Lake Resources' balance sheet, the ASX lithium share says, allowing it to focus on works at its Kachi project. Per the company:

The funds will be used to strengthen the Company's balance sheet as it continues progressing (i) its ongoing strategic priorities for Kachi and (ii) the potential sale of non-core assets and lithium tenements located in Jujuy and Catamarca Provinces as outlined in the Company's announcement dated 1 July 2024.

Despite today's action, the ASX lithium share is down more than 84% in the last 12 months.

Latin Resources reports drilling results

In a separate update, ASX lithium player Latin Resources reported drilling results from its Planalto Prospect. The site is located at Latin's fully owned Salinas Lithium Project in Brazil.

The latest drilling results have confirmed a thick, high-grade core of mineralisation extending down dip and up-plunge to the southwest.

Notably, one drill hole named SADD320 revealed a resource depth of more than 16 metres, with concentrations of 2.18% lithium (Li2O) from a depth of 293 metres.

The company plans to release a preliminary mineral resource estimate (MRE) for the Planalto Prospect in Q3 CY 2024, pending all assay results.

Tony Greenaway, VP of operations for the Americas at Latin Resources, highlighted the similarities between the Planalto and the company's Colina deposit, also located at the Salinas site.

While the stacked pegmatite lenses at Planalto show a shallower dip to those at Colina, the coarse grained Spodumene only mineralisation is consistent with what we see at Colina. The latest drilling has highlighted an up-dip trend to the high-grade core of mineralisation which will now become the focus of additional drilling.

Bell Potter recently expressed a bullish outlook on the ASX lithium share, citing the company's potential to deliver new lithium supply into structurally short markets.

The broker has a speculative buy rating on Latin Resources shares, with a price target of 40 cents.

Foolish takeaway

Following today's updates, these two ASX lithium players have caught investor attention. Latin Resources stock is down more than 56% in the past 12 months, with Lake shares ahead of that.

With the price of lithium at a low, the outlook for the sector remains mixed.

The post Why these 2 ASX lithium shares are getting a boost today appeared first on The Motley Fool Australia.

In late afternoon trade, shares in the beaten down All Ordinaries Index (ASX: XAO) lithium stock are trading for 3.8 cents apiece, right back where they were at yesterday's close.

That flat performance is a fair bit better than the All Ords today, with the index down 1.1% at this same time.

Here's what's happening with Lake Resources shares.

Lake Resources shares eyeing cost reductions

With lithium prices having crashed some 85% from their highs and remaining depressed in 2024, Lake Resources has joined many of the other miners in cutting costs.

Among the cost-cutting measures intended to keep the company afloat until lithium prices recover, the company announced in March that it was cutting its global headcount by some 50%.

But there could be more cost savings ahead, without the need for further staff reductions.

In an announcement released this morning that could offer some longer-term tailwinds for Lake Resources shares, the miner said it could realise cost savings of up to 50% on Direct Lithium Extraction (DLE) equipment construction expenses at its flagship Kachi lithium project in Argentina.

This comes after Lake's Kachi project partner, Lilac Solutions, released its fourth-generation ion exchange technology and technical white paper.

The white paper indicates that Lilac has improved long-term lithium recovery to more than 90% on salar brines and reduced core extraction equipment costs by up to 50%. Lake said this could result in total cost savings of up to 25% across the DLE technology package.

The improved technology will also result in 10% lower reagent consumption, which will help control project operating costs.

Commenting on the tech improvement that could help support Lake Resources shares, CEO David Dickson said:

The technology advancements and cost savings announced by Lilac are significant. Improvements in the technology in addition to an increase in the brine lithium grade could result in a reduction in overall project capital of up to 10% for the Kachi Project.

The miner will now evaluate the impact of the new data on its project cost estimates, reported on 19 December in the Kachi Phase One Definitive Feasibility Study.

"Lake was pleased to be part of the field demonstration of Lilac's technology and these cost savings are another welcome development. We look forward to continuing our work with Lilac at Kachi," Dickson said.

Lilac CEO Raef Sully added:

Lilac is excited about the cost savings and operational efficiencies our latest generation ion exchange technology brings. This advancement not only enhances lithium extraction efficiency but also boosts the sustainability and economic viability of lithium production.

Stung by the collapse in lithium prices, Lake Resources shares are down 85% since this time last year.

The post What's happening with Lake Resources shares today? appeared first on The Motley Fool Australia.

Most lithium producers and explorers rocketed higher in 2022 and into 2023 as the price of the battery critical metal they dig from the ground hit all-time highs.

But with demand growth slowing and supply growth ramping up, that trend reversed resulting in an 85% collapse in global lithium prices from those record prices.

While prices have somewhat stabilised in 2023, many of the ASX lithium shares with higher costs have found themselves operating at a loss. Some have gone so far as to suspend production, awaiting the return of better market prices.

As for the risk of investing in the lithium miners in the past year, here's how these top-name stocks have performed over 12 months:

• Pilbara Minerals Ltd (ASX: PLS) shares are down 40%
• Core Lithium Ltd (ASX: CXO) shares are down 87%
• IGO Ltd (ASX: IGO) shares are down 61%
• Liontown Resources Ltd (ASX: LTR) shares are down 66%
• Sayona Mining Ltd (ASX: SYA) shares are down 82%
• Lake Resources (ASX: LKE) shares are down 87%
• Latin Resources Ltd (ASX: LRS) are down 51%
• Patriot Battery Metals Inc (ASX: PMT) are down 67%
• Mineral Resources Ltd (ASX: MIN) are down 20%

I think those figures speak to the formidable risks on investing in ASX lithium shares.

At least for the year just past.

But what about the year ahead?

Are ASX lithium shares still very risky?

To be clear, every investment comes with its own unique risks.

As for the particular risk of investing in ASX lithium shares, we'll defer to Blackwattle Investment Partners.

Here's what the fund managers reported on Blackwattle's own investments and outlook for the Aussie lithium miners.

In June, the Blackwattle Small Cap Quality Fund lost ground on its Latin Resources and Patriot Battery Metals holdings. Blackwattle noted that the lithium commodity price continued to follow a volatile trading pattern over the month.

As for those risks, the fund manager added:

Perversely, when considering investments in the resources sector, the risk is the lowest when commodity prices are falling toward the lower end of the cost curve for mining companies with tier-one assets.

At current spodumene lithium prices, few hard rock miners are generating much free cash flow today. As such, we continue to maintain modestly sized holdings in the lithium sector. In our view projects with superior economics like Latin Resources and Patriot Metals are well placed to ride out near-term volatility in the lithium price.

Noting that it will take some time for the supply and demand dynamics in lithium markets to balance, Blackwattle said, "At current prices, new projects, such as Pilbara Minerals' P2000, don't stack up."

However, the fund managers are more optimistic about the outlook of Arcadium Lithium (ASX: LTM) after the ASX lithium share plunged 26% in June.

Arcadium, as you may know, started trading on the ASX in December, formed from the merger of the previously ASX-listed Allkem and US-listed Livent.

According to Blackwattle:

The merger has created a quality, vertically integrated global lithium chemicals producer with a significant synergy opportunity & production growth upside.

We see significant upside for LTM outside any moves from the lithium price, as the new business looks to maximise the merger potential through synergies, driving cost & capex reductions as well as improved pricing.

We view a potential rebound in lithium prices at some point as option value.

Foolish takeaway

So, is investing in ASX lithium shares right now risky?

You bet.

But could buying some of the beaten-down, low-cost producers also pay off handsomely over the longer run?

I certainly think it could.

Just don't invest more than you're prepared to lose.

The post How risky is buying ASX lithium shares right now? appeared first on The Motley Fool Australia.

Taking a look at the share prices over the past 12 months, the All Ordinaries Index (ASX: XAO) has gained a respectable 8%. And that's not including the dividends a number of those stocks pay out.

As for ASX lithium shares, here's how some of the top names performed over this same period:

• Pilbara Minerals Ltd (ASX: PLS) shares are down 41%
• Core Lithium Ltd (ASX: CXO) shares are down 91%
• IGO Ltd (ASX: IGO) shares are down 62%
• Liontown Resources Ltd (ASX: LTR) shares are down 67%
• Sayona Mining Ltd (ASX: SYA) shares are down 83%
• Lake Resources (ASX: LKE) shares are down 87%

I think we can all agree these are some fast falling knives.

What's happening with lithium prices?

As you're likely aware, lithium producers and explorers across the globe have come under heavy selling pressure as the price of the battery critical metal crashed from all-time highs of more than US$8,000 per tonne in November 2022 to just under US$1,000 a tonne this week.

The massive retrace that's been pressuring ASX lithium shares came as rapid global supply growth outpaced slower than expected demand growth.

On the demand side, EV growth rates in the EU and US have dropped markedly as electric vehicles struggle to compete with cheaper combustion powered rivals.

What's next for ASX lithium shares?

Whether ASX lithium shares represent screaming bargains after the past year's dismal performance or remain falling knives hinges on what we can expect for lithium prices.

And on that front, the medium-term outlook looks grim, with most analysts forecasting subdued prices for several years to come.

According to UBS analyst Levi Spry (quoted by The Australian Financial Review), "With a view that lithium markets remain well to over-supplied, we expect prices to stay lower for longer."

UBS rates lithium producers a sell "where valuations still appear stretched". The broker estimates that markets are still pricing lithium in the range of US$1,200 to US$1,480 per tonne.

Commenting on what drove the boom in ASX lithium shares, NabTrade's head of investor behaviour Gemma Dale said (quoted by ABC News):

Seeing Tesla Motors (NASDAQ: TSLA) go to the Moon, there was just a lot of heat in that sector. And what it meant was that investors were chasing a lot of companies that were not hyper viable. There was a lot of hype.

Falling knives or screaming bargains?

Over the short to medium-term, then, ASX lithium shares look more like falling knives that could pare down your initial investment.

However, long-term investors may well look back at today's beaten-down prices as screaming bargains.

"Those [lithium stocks] who have sort of strong, viable business models will perform in the long run. The ones that were a little bit more speculative might not play out quite so well," Dale said.

Earlier this week, Richard Coppleson, director of institutional sales and trading at Bell Potter, labelled ASX lithium share Pilbara Minerals "a super buy at these levels".

Coppleson said, "When lithium does recover, this is back to $5; only question is when will that be?"

Pilbara Minerals shares are currently trading for $3.05 apiece.

Now, whether you're looking to buy ASX lithium shares or any other stocks, be sure to do your own research first. If you're not comfortable with that or don't have the time, just reach out for some expert advice.

The post ASX lithium shares: Screaming bargains or falling knives? appeared first on The Motley Fool Australia.