The Pilbara Minerals Ltd (ASX: PLS) share price was enjoying another strong run today, up 2.9% in late morning trade, before heading sharply the other direction. Shares are currently down 3.13%.
This comes amid a wider run higher for the markets, buoyed by yesterday's rather dovish RBA rate decision.
That's today's price action.
But what really impressed us is that the Pilbara Minerals share price leapt a stellar 24.9% in September, classically billed as the worst month of the year for equity markets.
How did the Pilbara Minerals share price rocket higher in September?
September did indeed live up to its poor reputation for most share investors.
From the closing bell on 31 August through to the end of trading on 30 September, the S&P/ASX 200 Index (ASX: XJO) fell a hefty 7.3%. The already battered tech sector fell even harder. The S&P/ASX All Technology Index (ASX: XTX) shed 11.5% over the month.
But the Pilbara Minerals share price went decidedly in the other direction.
The ASX lithium stock only released one price-sensitive announcement in September. After market close on the 20th, the company reported it had scored another increase in the price (up 10% month on month) for lithia content at its latest battery material exchange (BMX) auction.
The Pilbara Minerals share price hit another new all-time high on the news.
What's supporting ASX lithium shares more broadly?
More broadly, the miner also benefited from continued strong demand and prices for lithium across the globe.
As you're likely aware, the global EV market is booming. As the Australian Industry, Science & Resources Department's recent quarterly Resources and Energy Report spelled out, 75% of the world's lithium production goes into rechargeable batteries. And EV sales are forecast to grow by some 900% over the next 10 years.
With supply still struggling to catch up to demand, the department also sees lithium prices shooting higher next year.
According to the report, lithium hydroxide prices are expected "to lift from US$17,370 a tonne in 2021 to US$38,575 a tonne in 2022 and US$51,510 in 2023, and moderate to US$37,650 by 2024".
A 34% forecast increase in lithium prices next year compared to this year would certainly offer some healthy tailwinds for the Pilbara Minerals share price, now up 173% over the past 12 months.
