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Highlights
- Australia is eyeing a significant portion of the global lithium demand amid increasing popularity of electric vehicles and rising focus on clean energy storage.
- Australia is likely to make AU$16 billion in 2022–23 from lithium exports, indicating the country's sixth-largest resource and energy exports.
The world macroeconomic situation deteriorated considerably in the second half of 2022 as COVID-19 outbreaks, inflation, and war-related headwinds hit global economic development.
Even though, Australia is boosting initiatives to meet a significant portion of the global demand for lithium as demand for electric vehicles and clean energy storage increases.
China produces more than 80% of the world's lithium hydroxide, a refined form of the in-demand metal, according to the International Energy Agency. In Australia, several companies are building refineries that are aiming to transform locally produced lithium ore into compounds appropriate for use in batteries.
As per the December 2022 edition of the Resources and Energy Quarterly (REQ) report released by the Department of Industry, Science and Resources, lithium exports are set to earn AU$16 billion in 2022–23, becoming the country's sixth-largest resource and energy export.
On this note, let's take a look at these ASX-listed lithium stocks' one-week performance in 2023.
Sayona Mining Ltd
Emerging lithium producing company Sayona Mining Ltd (ASX:SYA) has projects in Canada and Western Australia.
As procurement, permits, and construction work is progressing, Sayona is on pace to resume production at its flagship North American Lithium (NAL) plant in Q1 2023, according to an ASX statement filed by the company last month.
The company further informed that as of the end of November 2022, procurement was 99% finished, with almost all significant components arriving on site. For all necessary installation components, including the Belt Filter, contracts have been awarded, and crucial components like the Apron Feeder and Derrick screens have been installed.
Source: © 2023 Krish Capital Pty. Ltd.
Data Source: Company’s announcement dated 20 December 2022
Stock performance: Shares of Sayona Mining ended at AU$0.23 each, up 7.14% on ASX today. In the last five days trading sessions, the company's shares have climbed over 18%.
Core Lithium Ltd
Another major lithium player in Australia is Core Lithium Ltd (ASX:CXO). On Thursday (5 January), the company shared a business update through an ASX filing.
A ship carrying 15,000 dmt of 1.4% Li2O spodumene DSO sailed for delivery to a Chinese customer from the Darwin Port. This is the company's first revenue event, the first shipment of lithium products from Finniss, and a critical turning point in Core's quest to create long-term shareholder value, highlights the company update.
The DSO shipment was successfully tendered in October via a digital exchange platform, and a participant in the lithium-ion battery supply chain in Fangcheng, China, purchased it for USD951 per dmt.
Source: © 2023 Krish Capital Pty. Ltd.
Data Source: Company’s announcement dated 05 January 2023
Stock performance: Shares of Core Lithium closed trading at AU$1.21 per share, up 8.56% on ASX today. In the last five days trading sessions, the company's shares have jumped more than 20%.
Pilbara Minerals Ltd
Pilbara Minerals Ltd (ASX:PLS) owns the world's largest independent hard-rock lithium operation. The Pilgangoora Operation delivers a spodumene and tantalite concentration in Western Australia's abundant Pilbara area. Owing to the project’s quality and scale, a group of elite, international partners, including Ganfeng Lithium, General Lithium, POSCO, CATL, and Yibin Tianyi have shown interest.
Last month, the lithium company shared an update on offtake pricing and project expansion.
Following the conclusion of price reviews, Pilbara Minerals has significantly improved pricing outcomes with its major offtake clients. All shipments to the company's principal offtake clients that take place between December 2022 and later are subject to the revised offtake pricing.
The average price across major offtake customers would be similar to about USD6,300/DMT (CIF China) on a SC6.0 equivalent basis based on the market pricing reference data as of today, highlighted the company update dated 21 December 2022.
P680expansion project update
The following events are anticipated as part of Pilbara Minerals' continued progress toward completing the P680 Expansion Project schedule:
Source: © 2023 Krish Capital Pty. Ltd.
Data Source: Company’s announcement dated 21 December 2022
Stock performance: Pilbara Minerals' shares last exchanged hands at AU$3.96 each, up 6.45% on ASX today. The company's shares have increased over 6% in the last five trading sessions.
