The Pilbara Minerals Ltd (ASX: PLS) share price had a top run on the market today.
Pilbara shares rose 3.28% to close at $4.09. For perspective, the S&P/ASX 200 Index (ASX: XJO) edged just 0.07% higher.
So what boosted the Pilbara Minerals share price today?
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What's going on?
Pilbara was not the only ASX lithium share to rise today. Core Lithium Ltd (ASX: CXO) shares gained 3.05%, while Allkem Ltd (ASX: AKE) shares jumped 1.82%.
The S&P/ASX 200 Materials Index (ASX: XMJ) finished the day up 1.1%.
On the New York Stock Exchange, lithium shares Sociedad Quimica y Minera de Chile (NYSE: SQM) rose 0.81% while Livent Corp (NYSE: LTHM) jumped 0.57%. The Albermarle Corporation (NYSE: ALB) share price slipped 0.32% but is up 0.26% in after-hours trade.
Lithium sentiment appeared to be strong on the ASX today. It may have been fuelled by the federal government releasing Australia's "first Electric Vehicle (EV) Strategy" today. Lithium is a key component used in electric vehicle (EV) batteries.
Under the strategy, the government announced efficiency standards on car pollution will be introduced for new cars with the aim of pushing electric vehicle uptake.
Climate Change and Energy minister Chris Bowen said:
This strategy provides the coordination and leadership to drive down costs and improve infrastructure so that we get more affordable and accessible electric vehicles on the market.
The minister also announced $70 million in funding for new EV charging stations in Australia. The funding will be available to businesses, local government, councils, and state and territory-owned corporations.
Currently, Australia's EV sales are "four times lower than the global average".
Also today, the price of lithium fell lower. Lithium carbonate (99.5% battery grade) on the Shanghai Metals market has fallen 3.23% to US$26,189.06.
Conversely, Pilbara shares have risen 8% over the past two days. On Tuesday, UBS upgraded the company's shares to a "buy" with a $4.60 price target. UBS is optimistic lithium prices can rise in the long term, despite a short-term drop in demand.
Share price snapshot
Pilbara Minerals shares have lifted more than 40% in the last year. In the past month alone, the Pilbara share price has gained 11%.
Pilbara Minerals has a market capitalisation of about $12.3 billion based on the latest share price.
