Lithium miners enjoyed gains on Monday with the share prices of Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE) both climbing more than 5%.
Galaxy gained 5.38% on Monday to close at $2.74
Orocobre rose 5.15% on Monday's trade to end the day at $4.70.
And Pilbara Minerals Ltd (ASX: PLS) saw solid gains on Monday of 3.94% to close on $0.66, following last week's announcement of a major deal with China's Great Wall Motors Company.
The outlook for the share price of some lithium miners remains positive. Some analysts have set a 12-month price target for Galaxy at $3, while Pilbara Minerals has a 12-month target of $0.68c.
With demand for electric vehicles surging, well-positioned miners look to have a strong lithium market upon which they can capitalise.
Global sales for electric vehicles are expected to hit nearly 25 million vehicles in 2030, up from around 2 million in global sales recorded by the International Energy Agency in 2016.
And China, now a major player in the electric vehicle market, is expected to continue to have a big impact on the industry.
An official plan on auto industry development states that China will see electric car output and sales hit 2 million annually by 2020, about four times the current level, according to the China Daily.
According to many analysts, demand for lithium will only rise with some expecting consumption of the key battery making ingredient to triple in the coming years.
But while demand for lithium clearly looks strong, the supply side of the equation remains decidedly uncertain.
Conflicting reports on just how much lithium there is to be mined must be considered.
Although supply is limited and some reports suggest demand is chewing up supply, according to Deutsch Bank there is enough lithium to last more than 100 years. This would more than accommodate significant rises in demand.
