The Orocobre (ASX:ORE) share price is climbing. Here's why.

The Orocobre Limited (ASX: ORE) share price raced higher at the open after a lithium pricing update from the Aussie mining group.

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The Orocobre Limited (ASX: ORE) share price is rising this morning after a pricing update from the Aussie lithium miner. At the time of writing, the Orocobre share price is currently at $5.65, up 3.29%.

Why is the Orocobre share price climbing?

This morning, Orocobre reported a lithium price upgrade and provided its quarterly report date. The Aussie miner sold 3,032 tonnes of Olaroz lithium carbonate during the March 2021 quarter at US$5,853 per tonne free on board (FOB).

That sale price represents a more than 50 per cent increase on December 2020 quarter prices with prices received by Olaroz now up nearly 90 per cent in the last six months. 

The Orocobre share price has charged higher on the back of this morning's update. Shares in the lithium miner jumped more than 4 per cent in early trade.

Orocobre also provided an update on the expected June 2021 quarter pricing this morning. The mining group expects US$7,400 per tonne FOB, subject to shipping schedules. That would represent the highest pricing received since June 2019 for the Aussie miner. 

As a result, Orocobre is expecting second half FY2021 pricing to be approximately 20 per cent higher than prior guidance. Investors have been bullish on the news this morning as the Orocobre share price was climbing higher at the open.

According to the release, forward sales enquiries for all grades of Olaroz lithium carbonate remain strong and all budgeted FY2022 product is fully sold. Additional production will become available when Olaroz Stage 2 commences production in the second half of 2022.

Orocobre is set to report its full March 2021 quarter results on 21 April 2021. That will be followed by a management briefing at 11:15 am.

Foolish takeaway

The Orocobre share price remains one to watch throughout the day's trade after climbing early. The S&P/ASX 200 Index (ASX: XJO) also jumped in early trade following a soft start to the week on Monday.

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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