The Pilbara Minerals Ltd (ASX: PLS) share price is taking off on Tuesday. Its gain sees it coming in as one of the S&P/ASX 200 Index (ASX: XJO)'s top performers.
The ASX lithium stock has lifted 6.81% right now to trade at $4.86.
Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is surging 2.75% to lead the broader ASX 200's 2.26% gain.
So, what wind might be lifting the wings of the ASX 200 lithium favourite today? Well, the federal government has revealed its outlook for the commodity, and it's remarkably bullish.
Image source: Getty Images
What's going right for the Pilbara Minerals share price?
The Pilbara Minerals share price is launching amid news Australia is predicted to pocket $13.8 billion from lithium exports in 2022-23. That marks a whopping 180% increase on the prior year's near-$5 billion impact.
The Australian Government's latest quarterly Resources and Energy report forecasts spodumene and lithium hydroxide prices to rise from US$598 and US$17,370 a tonne respectively in 2021 to US$2,730 and US$38,575 a tonne in 2022.
They're predicted to peak at US$3,280 and US$51,510 a tonne in 2023.
The value of Australia's lithium exports is then forecast to drop to $12.9 billion in 2023-24 as the commodities' prices ease to US$2,490 and US$37,650 per tonne in 2024.
Australia is the world's largest lithium exporter, responsible for 46% of global lithium production in 2020.
And the nation is expecting its production capacity to grow at an annual average of more than 20%. That could see Aussie lithium production rise from 247,000 tonnes of lithium carbonate equivalent in 2020-21 to 469,000 tonnes in 2023-24.
More positive sentiment for the lithium sector is, of course, likely good news for the Pilbara Minerals share price.
It's also likely helping boost those of fellow ASX 200 lithium stocks Allkem Ltd (ASX: AKE), Mineral Resources Limited (ASX: MIN), and Core Lithium Ltd (ASX: CXO).
They're gaining 7.1%, 2.9%, and 6.6%, respectively, right now.
