Why ASX 200 lithium shares are charging higher on Friday

ASX 200 lithium shares are on the rise again following bullish news for the electric vehicle industry overnight.

| More on:
asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 (ASX: XJO) lithium shares are top performers on Friday following a solid session for the lithium sector overnight.

The largest ASX 200 lithium miners Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) are retesting all-time highs again, up 2.31%, 2.48% and 2.41% respectively.

Why ASX 200 lithium shares running higher

The broader lithium and renewables sector is a hot space right now with no shortage of positive news.

On Thursday, President Joe Biden signed an executive order with hopes of making at least half of all new vehicles sold in 2023 electric, according to Reuters.

"The 50% target, which is not legally binding, won the support of U.S. and foreign automakers, which said that achieving it would require billions of dollars in government funding."

Reuters quoted statements from major US automakers, with General Motors commenting it "aspires to end sales of new U.S gasoline-powered light duty vehicles by 2035" and Ford saying it plans "at least 40% of our global vehicle volume being all-electric by 2030."

Many ASX 200 lithium shares have been calling out global electric vehicle adoption as a catalyst to drive a lithium demand surge.

Galaxy's capital raising presentation back in November cited that "global EV sales [are] forecast to grow as high as 30% CAGR in the next decade" and also anticipated "robust demand for lithium in the mid-long term.

More recently, Pilbara Minerals set up an auction for 10,000 dry metric tonnes (dmt) of lithium spodumene concentrate on its Battery Material Exchange platform.

The company said that it received 62 online bids ranging from US$700/dmt to US$1,250/dmt free on board (FOB) during the three-hour auction window.

Pilbara Minerals accepted the highest bid of US$1,250/dmt.

By comparison, Pilbara Minerals said that spodumene prices were fetching between US$700 to US$975/dmt back in June this year.

Encouragingly, Tesla Inc (NASDAQ: TSLA) reported more than 200,000 vehicle sales during its second quarter results last week. The figure represents a 121% year-on-year increase, helping the company surpass US$1 billion in net income for the first time on record.

Should you invest $1,000 in Allkem right now?

Before you buy Allkem shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Allkem wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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.

More on Share Gainers

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough trading day for ASX stocks this Monday.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why 4DMedical, Gold Road, Syrah, and Tyro shares are racing higher today

These shares are starting the week strongly. But why?

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

2 ASX gold stocks racing higher in Monday's sinking market

Investors are sending these ASX gold stocks flying higher on Monday. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords share just rocketed 19% on BIG news

Investors are sending this ASX All Ords share flying on Monday. But why?

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was the ASX's fourth day of gains for the week today.

Read more »