From Novonix to Vulcan, why are these 5 ASX-listed lithium stocks soaring high?

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From Novonix to Vulcan, why are these 5 ASX-listed lithium stocks soaring high?

Lithium stocks
Image source: © Olivier26 | Megapixl.com

Highlights

  • Prices of lithium gained nearly 540% in the last year.
  • The staggering rise in the demand for lithium is underpinned by soaring EV sales in 2021.
  • Automakers across the globe are trying hard to secure the future supply of lithium by signing supply deals with miners.

Prices of lithium carbonate surged to CNY298,000 per tonne in the second week of January amid skyrocketing demand and supply disruptions. The market for battery metals has heated up on the back of a sharp increase in demand from lithium-ion battery manufacturers for electric vehicles and consumer electronics segments.

The staggering rise in the demand for lithium is underpinned by soaring EV sales in 2021, which is expected to rise to 6.4 million units in 2021, as per Bloomberg New Energy Finance (BNEF). Automotive majors across the globe scourge hard to secure a reliable and stable supply of lithium by entering into long-term offtake deals with mining partners. These offtake deals often take place at fixed prices, allowing mining players to hedge risks against commodity price fluctuations and also add up to the company’s financial position.

Let's look at five ASX-listed lithium stocks that have been trending amongst investors.

ASX lithium stocks

Source: ASX as of 11 January 2022

Novonix Limited

Novonix Limited (ASX:NVX) is an integrated developer of high-end equipment, material and services for the global lithium-ion battery industry. On Tuesday, the lithium player announced the start of the Company's process to list its securities on the NASDAQ.

Under the program, NVX expects to commence trading at the NASDAQ under NVX ticker. Shares of the Company jumped magnificently by ~512% in the last year.

AVZ Minerals

AVZ Minerals (ASX:AVZ) successfully completed AU$75-million (before cost) placement in December 2021. The successful capital raising helped the Company effectively progress towards the final investment decision to develop its flagship Manono Project.

Liontown Resources

Lithium stocks

Source: © Malpetr | Megapixl.com

On Monday, Liontown Resources (ASX:LTR) announced that it had awarded a significant design, delivery and fabrication contract to Metso-Outotec for a Semi-Autogenous Grinding (SAG) Mill for its flagship Kathleen Valley Lithium Project.

Pilbara Minerals

Last month, Pilbara Minerals (ASX:PLS) and Calix (ASX:CXL) provided an update related to their fully owned Pilgangoora Project. The Company has nearly completed the scoping study for the mid-stream product demonstration plant while technical and engineering work at the project location has been completed.

PLS now targets economic and commercial evaluations to complete the scoping study this year.

Vulcan Energy Resources

Vulcan Energy Resources (ASX:VUL) Tuesday finalised an agreement with Nobian, a European leader, for essential chemicals for the development of the Central Lithium plant. Both companies will also assess the feasibility of a joint project to develop, construct, and operate the Central Lithium Plant, located in Frankfurt.

Bottom Line

Lithium prices surged staggeringly by 540% in the last year due to soaring demand and tight supplies. The significant rise in lithium prices is underpinned by high demand in the lithium-ion battery manufacturing sector amid high demand for electric vehicles.

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