Four popular ASX lithium shares are having a cracking day on Tuesday with up to 11% share price gains.
The star performers among the ASX lithium producers today are as follows:
- Latin Resources Ltd (ASX: LRS) shares are up 10.81% to 21 cents
- Sayona Mining Ltd (ASX: SYA) shares are up 6.45% to 3.3 cents
- Liontown Resources Ltd (ASX: LTR) shares are up 4.76% to 88 cents
- Pilbara Minerals Ltd (ASX: PLS) shares are up 4.22% to $3.09
We're also seeing modest gains for some other ASX lithium stocks today.
At the time of writing, Core Lithium Ltd (ASX: CXO) shares are up 2% to 10 cents, and IGO Ltd (ASX: IGO) is up 1.25% to $5.27. The Arcadium Lithium CDI (ASX: LTM) share price is also up 0.74% to $8.14.
These share price gains are even more impressive when you consider that the S&P/ASX All Ordinaries Index (ASX: XAO) is down 0.3% today.
What's driving these 4 ASX lithium shares higher?
Several US-listed lithium stocks rallied overnight, so this may be behind local moves northwards today.
Albemarle Corporation (NYSE: ALB) shares rose 9.57% to $110.49 per share overnight.
Sociedad Quimica y Minr de Chile SA (NYSE: SQM) rose 4.15% to $38.19.
US lithium small-cap share Lithium Americas Corp (NYSE: LAC) lifted 7.91% to $4.23.
My colleague James also surmises that today's buying may indicate that investors think these four ASX lithium shares have been oversold in recent months and are now rebounding.
Check this out:
- Latin Resources shares are down 19% over the past six months and up 1% over the past month
- Sayona Mining shares are down 20% over the past six months and up 7% over the past month
- Liontown shares are down 37% over the past six months and up 5% over the past month
- Pilbara Minerals shares are down 25% over the past six months and up 7% over the past month
China stimulus likely to benefit ASX lithium shares, says expert
As we recently reported, Janus Henderson's Darko Kuzmanovic thinks China's recent stimulus measures — and any more to come — are likely to benefit lithium shares more than iron ore and coal stocks.
He thinks ASX lithium shares "look oversold" amid a short-term global oversupply, and "we're seeing a bottom as far as the commodity prices is concerned".
Kuzmanovic explained his views:
China is undertaking a shift away from urbanisation spend to higher-value manufacturing, which you can see in its battery manufacturing for electric vehicles and building its own superconductor chips – so it's deploying more innovation technology to its next phase of economic growth.
The implications of that are bulk commodities like iron ore won't have the demand they've had in the past, but things like copper, nickel and other battery materials will have demand drivers going forward.
Is there any news from these 4 ASX stocks today?
None of these four top-performing ASX lithium shares have official announcements in the market today.
Liontown's share price rise comes amid top broker Citi downgrading the stock to a sell rating with a 12-month share price target of 75 cents. You can find out why here.
The post 4 popular ASX lithium shares going gangbusters on Tuesday appeared first on The Motley Fool Australia.
Citigroup is an advertising partner of Motley Fool Money. Motley Fool</a> contributor <a href="https://www.fool.com.au/author/TMFBronwyn/">Bronwyn Allen has positions in Core Lithium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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