A lithium carbonate and spodumene pricing update from Allkem (ASX: AKE) is adding further jet fuel for lithium stocks on Friday.
Explorers and producers alike are rallying across the board, even after a sharp pullback on Wall Street and weak open for the S&P/ASX 200.
Metals Australia (ASX: MLS) +13.6%
Producers (plus emerging)
Sayona Mining (ASX: SYA) +7.3%
Argosy (ASX: AGY) +6.4%
Allkem said that preliminary March quarter sales for lithium carbonate were approximately US$27,236/t free-on-board compared to US$12,491/t in the December quarter.
Perhaps what was more drastic was that the June quarter price received for lithium carbonate was approximately US$35,000/t.
Allkem’s first-half FY22 results were expecting prices to average around US$25,000/t.
Advanced discussions have been taking place for Allkem, with spodumene concentrate pricing of approximately US$5,000/t in the June quarter.
March quarter sales were completed at a price of approximately US$2,218/t, which includes deliveries delayed from the December quarter.
Allkem's update has provided tangible forecasts about where lithium prices are headed in the June quarter.
This provides another vote of confidence that the supply-tight and surging EV demand narrative is showing no signs of fatigue.
A higher price environment is encouraging for established producers like Pilbara Minerals, who can take advantage of current spot prices.
Emerging players like Core Lithium, Lake Resources and Liontown expect to reach producer status in the next 1-3 years.
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