The Orocobre Limited (ASX: ORE) share price has continued its strong run today.
Although it has dropped back a touch now, in early afternoon trade the lithium miner's shares reached an all-time high of $4.99.
Why did its shares reach an all-time high?
Investors have been piling into the lithium miners in recent weeks after a number of governments around the world announced plans to ban the production and sale of internal combustion engine vehicles in the future.
The move has been done to tackle rising pollution levels and is expected to lead to the accelerated adoption of electric vehicles.
As these vehicles currently run from lithium batteries, demand for the metal is forecast to grow exponentially over the next couple of decades.
With supply struggling to keep up with demand, lithium carbonate prices have been trading at sky high levels.
Investors are betting that this puts Orocobre and its lithium peers in a great position to deliver strong production margins and high levels of free cash flow.
Interestingly, Orocobre is still the third-most shorted share on the ASX. Unfortunately for short sellers, with the company's shares at an all-time high, it appears as though they may have got this one wrong.
