Why the Lake Resources (ASX:LKE) share price surged 10% on Tuesday

Here's what might have driven the Lake Resources share price higher today.

| More on:
a happy investor with wide mouth expression grasps a computer screen that shows a rising line charting the upward trend of a share price

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

sdf

The Lake Resources N.L. (ASX: LKE) share price took off today despite silence from the company.

As of Tuesday's close, the Lake Resources share price is 97.5 cents, 10.17% higher than it was at the end of Monday's session.

However, it wasn't alone in its gains. As The Motley Fool Australia reported earlier today, many ASX lithium shares surged higher on Tuesday.

ASX lithium giant, Plibara Minerals Ltd (ASX: PLS) saw its share price gain 8.1% over the course of Tuesday. Meanwhile, that of AVZ Minerals Ltd (ASX: AVZ) and Liontown Resources Limited (ASX: LTR) shot up 10.9% and 5.5% respectively.

Let's take a look at what might have boosted the lithium exploration company's stock higher.

What may have driven the Lake Resources share price today?

The Lake Resources share price might have caught a wave born of soaring lithium prices on Tuesday.

S&P Global reported that domestic Chinese lithium carbonate and hydroxide prices hit another record high last week amid "nervous energy" in the market. A source told the publication that buyers were trying to get their hands on lithium before prices soared again.

Such anticipation of another lithium run might be evidenced by the Global X Lithium & Battery Tech ETF's (NYSEARCA: LIT) recent movements. The exchange-traded fund (EFT) surged to a new record high last night.

Additionally, the Australian Government released its Long-Term Emissions Reduction Plan today. It's expected to see Australia reach net zero emissions by 2050.

It has a heavy focus on an existing strategy: The Technology Investment Roadmap. The roadmap's first low emissions technology statement prioritises 5 technologies, one of which is energy storage.

A media release from Prime Minster Scott Morrison and Minister for Industry, Energy, and Emissions Reduction Angus Taylor stated that the government's existing $20 billion investment in low emissions technology should unlock at least $80 billion of private and public investment.

The news may have bolstered excitement over ASX lithium shares, as it might be assumed, a technology-focused strategy could call for a lot of battery minerals.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

More on Materials Shares

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

This ASX mining stock is jumping 11% on big news

This miner is having a good session on Thursday. Let's find out why.

Read more »

Lion leaping with mouth open, symbolising a rising Liontown share price.
Materials Shares

Why is the Liontown share price leaping 9% on Tuesday?

This ASX lithium share is the fastest mover of the ASX 200 today.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why is this ASX 300 lithium stock sinking 17% today?

What's going on with this lithium stock today? Let's find out.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Materials Shares

$10k invested in Pilbara Minerals shares 5 years ago is now worth…

Let's see if this lithium miner delivered the goods for investors.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Pilbara Minerals shares jumps 10% on big news

This lithium miner is having a day to remember on Wednesday. But why?

Read more »

Three miners looking at a tablet.
Materials Shares

Why Bell Potter says this ASX mining stock is a top buy

Let's see which stock the broker is tipping to deliver big returns.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Materials Shares

Down 39% in a year, why IGO shares still look overpriced

A leading expert doesn’t believe IGO shares are out of the woods just yet.

Read more »