Image Source: Getty Images
It was a tough day for ASX Lithium stocks, with many players hitting record highs with double-digit spikes.
Australia’s next lithium producer Core Lithium Ltd (ASX: CXO) It rose 20% to a record high of 57 cents.
Firefinch Ltd (ASX: FFX)In partnership with Chinese lithium giant Jiangxi Ganfeng Lithium, promoted the Goulamina project, rising from 5.74% to 65.4 cents.
The other notable ASX Lithium strains are all Explorers. Argocy Minerals Limited (ASX: AGY), Lake resource NL (ASX: LKE) When Avz Minerals Ltd (ASX: AVZ), Thursday session ended 13.1%, 2.7% and 3.3% respectively.
What is driving the ASX Lithium stock?
Lithium is expected to play an important role in the global transition to zero net emissions.
Lithium prices have already risen above the 2018 highs, Benchmark Mineral Intelligence China’s battery-grade lithium carbonate reported a 26.5% surge in the last two weeks of September, reaching 160,000 yuan (US $ 24,800) per ton.
As a result, many ASX lithium stocks have hit record highs in recent weeks, from their first lows in years in late 2020.
This may be just the tip of the iceberg.
The International Monetary Fund (IMF) released the World Economic Outlook Report this month.
In the IEA’s net zero emission scenario by 2050, total lithium and cobalt consumption will increase more than six-fold, driven by clean energy demand.
From a pricing perspective, the report states:
The results show that prices reach a historic peak for an unprecedented and lasting period under net zero with emission scenarios up to 2050. Cobalt, lithium and nickel prices will rise hundreds of percent from 2020 levels, potentially delaying energy transitions.
This makes lithium a very lucrative business and can be a good precursor to both established players and future explorers.
Why ASX Lithium Stocks Soar On Thursday
Source link Why ASX Lithium Stocks Soar On Thursday