The Lake Resources N.L. (ASX: LKE) share price is up and away on Monday despite no announcements from the company.
After being pounded late last week by almost 10%, the lithium producer's shares are rebounding 3.77% to $1.10 today.
And despite the slight retracement in recent times, it's up 23% in a month.
Let's take a look at what's been powering the company's shares forward lately.
Image source: Getty Images
What's happening today?
Investors are likely bidding up the Lake Resources share price following a rally across the S&P/ASX 200 Materials Index (ASX: XMJ) sector.
Currently, the index is up 1.86%, which makes it one of the best performers across the ASX today.
Shares in Core Lithium Ltd (ASX: CXO) and Liontown Resources Ltd (ASX: LTR) are also up 5.06% and 3.09%, respectively.
In addition, Motley Fool James Mickleboro reported today that Lake Resources had seen its level of short interest drop week on week.
Bullish broker note
The elevated Lake Resources share price today could also be related to a positive note from JP Morgan, which stated it believed the lithium industry was looking rosy.
According to a report in The Australian, JP Morgan noted it was forecasting a boost for lithium prices because of a "steeper cost curve to incentivise low-grade Chinese supply to fill the supply-demand gap".
Subsequently, the broker lifted the price of lithium carbonate and spodumene by 20% and 25%, respectively.
This is a stark contrast to Goldman Sachs, which in late May released a bearish report on the lithium sector.
Lake Resources has an aspirational target to reach a capacity of 100,000 tonnes per annum of lithium carbonate within the next eight years.
Lake Resources share price summary
Investing in the lithium sector has been a great place to park your money in the last 12 months.
The Lake Resources share price is up by around 90% over that time, and much more if you look further back.
Based on today's price, Lake Resources commands a market capitalisation of approximately $1.47 billion.
