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Why is the Lake Resources share price leaping 5% today?

Why are Lake shares rising today?

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Monica O'Shea
Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.
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Key points
  • The Lake Resources share price is soaring 5% today 
  • Multiple ASX lithium shares are in the green 
  • Lake Resources is exploring five lithium projects 

The Lake Resources N.L. (ASX: LKE) share price is having a top run today.

This ASX lithium share is soaring 5.36% and currently trading at $1.18. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.05% in the red at the time of writing.

Let's take a look at what could be impacting the Lake Resources share price today.

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Image source: Getty Images

Lithium news

Lake Resources is not the only ASX lithium share to rise today. Core Lithium Ltd (ASX: CXO) shares are soaring nearly 11%, while Allkem Ltd (ASX: AKE) shares are up 1.48%.

In news last night, Indonesia is reportedly in talks with Australia to partner on lithium and the electric vehicle battery market.

Indonesian chamber of commerce and industry Arsjad Rasjid said business leaders have been discussing investing in Australian lithium resources, The Australian reported. Rasjid said:

If we can work together on this then Indonesia and Australia could be the global supply chain for EV batteries.

Indonesia is very serious about investing in lithium mines.

World leaders including Australian Prime Minister Anthony Albanese and US President Joe Biden are meeting in Bali for the G20 Leaders' Summit this week. Rasjid told the publication he plans to speak to the Prime Minister on this potential lithium partnership.

Meanwhile, news of easing COVID-19 restrictions in China could also be giving lithium shares a boost today. China is reducing quarantine times and will stop recording secondary contacts, as my Foolish colleague Brooke highlighted earlier today.

China is a major electric vehicle market. Lithium is used in EV batteries. In October, Tesla exported a record number of EVs to China.

Lake Resources is exploring five lithium projects in the lithium triangle, according to a presentation on Thursday.

Lake Resources share price snapshot

The Lake Resources share price has leapt 17% in the year to date, while it has jumped 20% in a year.

For perspective, the ASX 200 has shed nearly 4% in the past year.

Lake Resources has a market capitalisation of $1.64 billion based on the current share price.

Motley Fool contributor Monica O'Shea 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 Scott Phillips.

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