Highlights

• Lithium is extensively used in rechargeable batteries.
• The metal is now considered "the new gold".
• Many lithium stocks performed well in the past month, including Pilbara Minerals and Mineral Resources.

Lithium is considered "the new gold" now. It is widely used in rechargeable batteries for cell phones, laptop computers, digital cameras, and electric vehicles. Some non-rechargeable batteries, in the products like heart pacemakers, toys, and clocks, also use lithium.

Electric vehicles have been at the forefront of the car industry's efforts to become more environmentally friendly. According to the latest Global Electric Vehicle Outlook study, sales of electric cars, including fully electric and plug-in hybrids, doubled in 2021 to a record high of 6.6 million.

The momentum continued in 2022, with around two million electric vehicles sold worldwide in the first quarter.

The S&P/ASX200 Index rose 103.90 points, or 1.45%, to 7,286.60 points on Monday (30 May 2022), rising above its 125-day moving average. On the other side, 10 out of 11 sectors ended higher today, out of which materials was the second top-performing sector following the IT sector.

Also Read: SYA, CXO, PLS: Why are these ASX-listed lithium stocks in news?

Meanwhile, ASX 200 Materials Index also closed at 17,981 points, up 2.20% or 386.30 points.

Today, we will look at three ASX-listed lithium stocks that performed well in May 2022 and are expected to continue the trend next month (June 2022) as well.

These three companies include Pilbara Minerals Limited, Mineral Resources Limited and Allkem Limited.

Image Source: © 2022 Kalkine Media ®

Data Source- ASX

Pilbara Minerals (ASX:PLS)

Pilbara Minerals Limited is a mineral exploration firm based in Australia. The company completely owns the Pilgangoora lithium-tantalum project in Western Australia. Pilbara was established in 2005 in West Perth.

Last week (24 May 2022), Pilbara shared the results of Pilbara's fifth spodumene concentrate digital auction, organised through its Battery Material Exchange (BMX).

A cargo of 5,000 DMT with a target grade of 5.5% lithia was presented for sale on the platform, with delivery due on 15 June 2022.

On 17 May 2022, Trek Metals Limited (ASX: TKM) announced that it had signed an agreement with Pilgangoora Operations Pty Ltd (POPL), a subsidiary of Pilbara Minerals Limited, to acquire a 100% stake in precious and base metals exploration tenement E45/4640, which is adjacent to the company's Pincunah Project.

Stock performance: Pilbara Minerals' shares last exchanged hands at AU$2.98 each, up 2.41% from its previous close. In the last month, the company's shares have grown almost 5%. However, the stock has recorded negative growth of around 7% on a YTD basis.

Source: © Malpetr | Megapixl.com

Mineral Resources Ltd (ASX:MIN)

Mineral Resources Ltd is an Australian mining services company, whose portfolio includes hard-rock lithium and iron ore properties. It provides mining services through CSI Mining Services and Process Minerals International (PMI).

On 24 May 2022, Buru Energy Limited (ASX:BRU) and Mineral Resources' wholly-owned subsidiary Energy Resources Limited (EnRes) announced to restructure their interest in L20-1 in the onshore Carnarvon Basin through a farmout by Buru to EnRes.

Buru will assign a 25% permit interest and operatorship of L20-1 to EnRes under the farmout provisions, giving Buru a 25% permit interest and EnRes a 75% permit interest.

Stock performance: Shares of Mineral Resources ended 2.30% higher at AU$62.70 each on ASX today (30 May 2022). In the last one month, the company's shares have jumped around 7% and almost 12% on YTD basis.

Allkem Ltd (ASX:AKE)

Allkem is a minerals exploration and production firm focused on exploring lithium and potash resources in Argentina. The company was formed in 2021 after the merger of Galaxy Resources and Orocobre.

The stock has delivered a return of over 15% in the past month and more than 35% YTD.

Also Read: Allkem (ASX:AKE) up over 7% on plans to boost lithium produce