Liontown Resources (ASX:LTR) shares rose as much as 7.3% to a day’s peak of AU$1.76, which also represented its highest point in more than a month. The stock surged on the back of a record high lithium price in China.
Liontown is an Australian lithium producer with multiple projects, which produce the in-demand mineral, that goes into making electric vehicle batteries and renewable energy products.
Record lithium prices power ASX lithium stocks
As the world makes the shift to clean energy in response to climate change, lithium demand has increased significantly. The strong demand has sent the price of the metal soaring. According to Benchmark Mineral Intelligence, battery-grade lithium carbonate reached an all-time high of US$74,475 per tonne last week in China, a more than doubling of the price so far in 2022.
ASX lithium shares such as Core Lithium (ASX:CXO), Lake Resources (ASX:LKE) and Pilbara Minerals (ASX:PLS) also rose alongside Liontown on the pricing report. China is a major manufacturing hub for many leading electric automakers. As a result, lithium shipments and prices in the country can offer clues about industry trends.
Liontown share price prediction
Liontown shares have gained about 60% in the past three months. According to TipRanks’ analyst rating consensus, Liontown stock is a Moderate Buy. The average Liontown share price prediction of AU$1.95 indicates more than 10% upside potential.
Concluding thoughts
Strong lithium demand, at high prices can mean a more profitable business for Liontown Resources and other suppliers of the battery material.
