AUS
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Highlights
- Australia’s lithium production is anticipated to rise by 24.5% to 68.45 kt in 2022.
- Lithium mining firms like Sayona, Core Lithium and Pilbara closed in green today.
One of the most popular metals among other commodities is lithium because the batteries used in electric vehicles (EVs) are made of lithium, and the rising demand for EVs is the primary reason behind the surge in lithium price.
Australia's lithium production is anticipated to rise by 24.5% to 68.45 thousand tonnes (kt) in 2022 as projects that were previously operating at reduced capacity, primarily because of COVID-19 pandemic restrictions, have resumed operations at full capacity now.
It is to be noted that Australia produces more than half of the world's lithium and the country is now facing significant labour shortages due to the COVID-19 pandemic. The total amount of lithium produced in Australia is anticipated to rise at a CAGR of 14.2%, reaching 116.24 kt in 2026.
Recently, many developments took place which have the potential to affect the lithium industry in a significant manner in future. For example, last week, Rio Tinto (ASX:RIO) signed a deal with automobile giant Ford to develop more reliable and sustainable supply chains for the battery and low-carbon materials used in Ford vehicles.
On 27 July 2022, Sociedad Qumica y Minera de Chile (SQM), a lithium miner in Chile, had inked a deal with Dart Mining to acquire an interest in the Dorchap Lithium Project in Victoria, Australia. SQM Australia is a wholly owned subsidiary of SQM.
Meanwhile, ASX 200 Materials Index closed 2.43% higher today at 15,440.40. The overall ASX market also ended in the green, up 0.97% at 6,889.70 points.
In this article we will cover three ASX-listed lithium stocks and discuss about their performance in July. These companies include Sayona Mining, Core Lithium and Pilbara Minerals.
Sayona Mining Limited
Shares of Sayona Mining Limited (ASX:SYA) closed trading flat at AU$0.20 apiece today. The lithium miner has recorded a positive growth of around 14% this month.
Sayona announced on July 25 that Morella Corporation Limited (ASX:1MC) has obtained financing commitments totalling AU$7.5 million to support the lithium growth strategy.
The statement states that Morella would issue 500 million brand-new, fully paid ordinary shares at an issue price of AU$0.015 apiece to new and current institutional and sophisticated investors in Australia and outside Australia.
Since the announcement, the company's shares have been growing up and jumped around 5% in the last five days of trading.
Image Source: © Christof14 | Megapixl.com
Core Lithium Ltd
Core Lithium Ltd (ASX:CXO), another lithium explorer, yesterday (July 27) shared its quarterly activities report for the period ended 30 June 2022. The company informed that it had advanced construction at the Finniss Project during the period. It also reported receiving environmental approval for BP33 and acquired new NT lithium project Shoobridge Project.
Following the positive quarterly updates, Core's shares ended the day on a positive note. The lithium company's shares ended 5.63% higher at AU$1.13 per share today.
However, the shares of Core Lithium jumped over 8% in July alone (till date).
Pilbara Minerals Limited
Another top lithium producer Pilbara Minerals (ASX:PLS) announced its June 2022 quarterly activities report today. The company had strong operating cash flow during the period.
Pilbara also informed that the next phase of expansion at Pilgangoora has been approved.
The company's shares ended 6.23% higher today at AU$2.73 each on Thursday.
