AUS
NZ
UK
CA
USA
IND
Highlights
Lithium has seen its demand rise sharply in the past few months.
The tight supply has kept the prices of the white metal higher.
With the rise in EV production, demand for lithium in modern batteries has surpassed supplies.
The year 2022 has been strong for commodities and lithium is no exception. Lithium has seen its demand rise sharply in the past few months amid surge in demand for electric vehicles (EVs). Tight supply has kept the prices of this white metal higher.
Lithium is one of the major elements used in the production of batteries, which form the core of EVs. With the rise in EV production globally, demand for the key element in modern batteries has surpassed fresh supplies. In 2021, electric vehicles’ global sales doubled.
According to a report by the International Energy Agency (IEA), the global EV market is likely to grow to 145 million vehicles by 2030 from 11 million vehicles in 2020.
It will result in high demand for batteries, generating nearly 80% demand for lithium as early as 2025 compared to 60% in 2019, as per various reports. In such a scenario, where lithium prices are expected to remain elevated, lithium feedstock producers are expected to see a favourable economic environment.
In the last twelve months, the prices of lithium have soared more than 500%, with EV batteries accounting for nearly 70% of global lithium demand. This is what has mainly driven investors’ interest in the ASX-listed lithium shares.
On this note, let’s discuss three ASX-listed lithium producers which have given returns of over 50% in the past year:
Allkem Ltd (ASX:AKE)
Formed as a result of the merger between Galaxy Resources and Orocobre in 2021, Allkem is a minerals exploration and production company with focus on developing lithium and potash resources in Argentina.
The stock has delivered a return of over 57% in the past year. However, the stock is up over 1% on a year-to-date (YTD) basis.
Meanwhile, Allkem was commanding US$796 per dry metric tonne for spodumene concentrate in the September quarter.
Core Lithium Ltd (ASX:CXO)
Core Lithium is engaged in discovery and exploration of mineral deposits including lithium in Northern Territory and South Australia.
The stock has delivered a return of over 375% in the past year. However, the stock is up over 81% on a YTD basis.
The company last week announced that it had inked a crushing services contract for its Finniss Lithium Project.
Scorpion Minerals Ltd (ASX:SCN)
Scorpion Minerals is an Australian mineral exploration and resource development company with projects in West Africa and Australia.
The stock has delivered a return of 62% in the past year. However, the stock is up over 15% on a YTD basis.
The lithium firm recently raised funds worth AU$3.18 million to explore lithium and other metals at the Pharos Project in Western Australia.
RELATED ARTICLE: PME, MDR, CSL: A look at three ASX healthcare growth stocks
RELATED ARTICLE: Here’s how BHP is advancing in its divestment strategy
RELATED ARTICLE: Will net-zero policies have a critical play in the Election?
