Investors continue to flock to lithium stocks, with Global Lithium Resources (GL1) proving a stand out today.
The Western Australian miner describes itself as a rapidly growing lithium exploration company.
GL1 shares rose by more than 10% throughout the day, hovering around AU$1.90 in afternoon trading. The stock has gained about 60% year-to-date and jumped 350% over the past 12 months.
Global Lithium Resources was joined by a raft of strong performing lithium stocks, including Lake Resources (ASX:LKE), Liontown Resources (ASX:LTR), and Pilbara Minerals (ASX:PLS).
What is driving lithium stocks?
Lithium is a major material in the manufacturing of electric vehicle batteries. As a result, the shift to electric vehicles is fuelling strong demand for lithium metal. Consequently, lithium prices have shot to record levels. At present, values are more than 280% higher than where they were a year ago.
The strong demand and high prices bode well for companies focused on lithium supply such as Global Lithium Resources. The company has two highly prospective projects in Western Australia. Its Pilbara-based Marble Bar Lithium Project in the Pilbara region is 100% owned, while its Goldfields region-based Manna Lithium Project is 80% owned.
Global Lithium Resources’ share price forecast
Global Lithium Resources’ shares are expected to continue to rise. According to TipRanks’ analyst rating consensus, GL1 stock is a Moderate Buy. The average Global Lithium Resources price forecast of AU$2.30 implies over 22% upside potential.
Furthermore, GL1 stock is seeing favourable mentions in financial blogs. TipRanks data shows that financial blogger opinions are 97% Bullish on GL1, compared to a sector average of 75%.
Although Global Lithium Resources has already recorded significant gains over the past year, the stock still has potential to grow in the future. For investors seeking exposure to the potentially lucrative lithium space, GL1 stock is worth considering.