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

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 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 »

Man with rocket wings which have flames coming out of them.
Materials Shares

This ASX 300 stock is surging 25% on US defence deal

The announcement of a 'a pivotal milestone' is getting investors excited today.

Read more »

A happy construction worker or miner holds a fistful of Australian dollar notes.
Materials Shares

$5,000 invested in BHP shares 5 years ago is now worth…

Will its shareholders be happy with their investment? Let's find out.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Materials Shares

Guess which ASX 200 stock is ending the week with a bang thanks to Rio Tinto

This stock has won a major contract from the mining giant.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Materials Shares

Is it time to buy ASX lithium shares?

Lithium prices continue to sink. Has this created a buying opportunity?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Materials Shares

Mineral Resources shares sink on Onslow Iron blow

This miner is having a tough session. Let's find out why.

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Materials Shares

MAC Copper shares in trading halt as miner flags 'potential control transaction'

MAC Copper shares are frozen while Sandfire Resources shares are the fastest risers of the ASX 200 today.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Materials Shares

Bell Potter says this ASX lithium stock could rise ~50%

The broker has just put a buy rating on this lithium stock.

Read more »