ASX 200 lithium shares are being bludgeoned on Friday following news out of Shanghai that lithium prices have fallen to their lowest level since January 2022.

Here is a summary of today's share market activity:

• The Allkem Ltd (ASX: AKE) share price is down 7.2% to $11.56
• The Pilbara Minerals Ltd (ASX: PLS) share price is down 6.1% to $4.02
• The Liontown Resources Ltd (ASX: LTR) share price is down 6.2% to $1.59
• The Sayona Mining Ltd (ASX: SYA) share price is down 6% today to 24 cents
• The IGO Ltd (ASX: IGO) share price is down 6% to $12.98
• The Mineral Resources Ltd (ASX: MIN) share price is down 5.3% to $84.30
• The Core Lithium Ltd (ASX: CXO) share price is down 4.5% to 96 cents.

What's behind the drop in ASX 200 lithium shares on Friday?

The Australian Financial Review (AFR) reports the lithium carbonate equivalent price has fallen to US$49,757 per tonne, according to Shanghai Metals Market data.

Lithium carbonate has been on a sustained decline since November 2022. Back then, the commodity was trading above US$86,100 per tonne. It has since lost 42% of its value.

Lithium prices are directly influenced by global demand for electric vehicles (EVs). Analysts are blaming China's cessation of EV subsidies this year for the continuing slide in lithium prices.

Top broker Goldman Sachs has been bearish on lithium prices since mid-2022.

In its latest forecast released before today's fall in the carbonate price, Goldman said all types of lithium would dramatically fall in value over the next few years.

The broker thinks supply will start to outweigh demand, thereby putting downward pressure on spot prices from 2H FY23.

Here are Goldman's forecasted prices.

Carbonate (per tonne)

• Spot price today: US$49,757
• 2023: US$53,300
• 2024: US$11,000
• 2025: US$11,000

Hydroxide (per tonne)

• Spot price today: US$72,600
• 2023: US$58,650
• 2024: US$12,500
• 2025: US$12,500

Spodumene 6% (per tonne)

• Spot price today: US$5,080
• 2023: US$4,330
• 2024: US$800
• 2025: US$800

The post Why are ASX 200 lithium shares falling so hard today? appeared first on The Motley Fool Australia.

Three ASX shares brokers have named as buys this week are listed below. Here's why they are bullish on them:

Core Lithium Ltd (ASX: CXO)

According to a note out of Macquarie, its analysts have retained their outperform rating on this lithium miner's shares with an improved price target of $1.50. This follows news that the company's drilling activities have led to the more than doubling of the Finniss Lithium Project mineral resource estimate. The Core Lithium share price is trading at 96.7 cents this afternoon.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $27.00 price target on this medical device company's shares. Fisher & Paykel Healthcare remains Goldman's top pick in the healthcare sector. The broker believes the company is now on the correct side of an earnings inflection cycle. This is being driven predominantly by demand, but importantly compounded by a lower-risk margin recovery profile. The Fisher & Paykel Healthcare share price is fetching $24.31 today.

IGO Ltd (ASX: IGO)

Analysts at Citi have retained their buy rating and $17.10 price target on this battery materials miner's shares. Although the broker suspects that lithium shares could struggle in the near term due to lithium price weakness, it remains positive on IGO due partly to its attractive valuation. In addition, the broker believes that lithium prices could rebound when industry restocking picks up in the coming months. The IGO share price is trading at $13.38 on Wednesday.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

Here's how Australia's top five lithium shares have performed since the closing bell rang last Friday:

• Pilbara Minerals Ltd (ASX: PLS) shares are down 9.7%
• Core Lithium Ltd (ASX: CXO) shares are down 1.0%
• Allkem Ltd (ASX: AKE) shares are up 2.6%
• IGO Ltd (ASX: IGO) shares are up 3.2%
• Mineral Resources Ltd (ASX: MIN) shares are up 6.8%

So, what's been impacting ASX 200 lithium stocks this week?

ASX 200 lithium stocks eye China production curbs

Some surprising news came out of China this week, with lithium ore-processing operations in Yichun, Jiangxi province ordered to halt operations.

This came as Chinese officials launched an investigation into the lithium miners in the province over potential environmental violations. With Yichun producing roughly 10% of the annual global lithium supply, investors in ASX 200 lithium stocks were keeping an eye on the developments.

It remains unclear how long the operations will remain offline.

This week also saw Goldman Sachs come out with a new, decidedly bearish forecast for lithium prices. The broker cited the risk of "higher than expected lithium supply" in China, coupled with ASX 200 lithium stocks "recently outperforming production expectations [and] increasing near term production guidance".

What helped lift the Mineral Resources and Allkem share prices?

Both Allkem and Mineral Resources are in the green over the week, potentially bolstered by some positive broker coverage.

Analysts at Bell Potter released bullish coverage on Mineral Resources, with a buy rating on the stock and a $110 price target. That's 21% above the Mineral Resources current share price.

Bell Potter noted that the ASX 200 lithium stock reported a higher profit for the six months ending 31 December than it generated in the entire 12-month period preceding that. And its analysts expect more strong growth ahead.

Meanwhile, Allkem was tipped as a buy this week by Goldman Sachs, despite the broker's rather dire outlook for lithium prices.

Goldman has a $15.40 12-month price target on Allkem shares, 26% above the current share price. "Allkem has one of the best production outlooks in our lithium coverage," the broker noted.

Why did the Pilbara Minerals share price underperform this week?

While not accounting for all of this week's underperformance, much of Pilbara Minerals' sell-off this week was due to its shares trading ex-dividend yesterday.

A week ago Friday, Pilbara Minerals reported on its half-year results.

On the back of a stellar 989% year on year increase in statutory net profit after tax (NPAT), the ASX 200 lithium stock rewarded investors with its first-ever dividend of 11 cents per share, fully franked.

It's pretty standard for stocks to lose as much, or slightly more, than their dividend payouts on the day they trade without those rights. And Pilbara Minerals proved no exception.

The post What's happening with ASX 200 lithium stocks this week? appeared first on The Motley Fool Australia.

We'll get to that news in a tick.

First, here's how the top five lithium shares are performing in afternoon trade today:

• Pilbara Minerals Ltd (ASX: PLS) shares are up 2.4%
• Core Lithium Ltd (ASX: CXO) shares are up 2.7%
• Allkem Ltd (ASX: AKE) shares are up 5.2%
• IGO Ltd (ASX: IGO) shares are up 2.8%
• Mineral Resources Ltd (ASX: MIN) shares are up 3.49%

Looks like greed is trumping fear for investors in ASX 200 lithium stocks today.

But should they be concerned?

Why this 6% decline in China matters for ASX 200 lithium stocks

China produces approximately 75% of the world's lithium-ion batteries each year.

And the Middle Kingdom boasts by far the largest production and sales figures for EVs of any nation on Earth.

In December alone, the China Automobile Association reported China produced 795,000 EVs. And the nation's dealers dipped into their inventories, with a whopping 814,000 EVs sold.

The story was much the same throughout 2022. And this surge in demand helped drive lithium prices to all-time highs last year. Since that peak, prices have retraced some 30%. But many analysts are forecasting they could have further to fall.

The decline is partly demand related.

As Reuters reports, January saw a 6.3% decline in sales of EVs and plug-in hybrids in China. That's after the sector grew 90% in 2022.

Commenting on the potential impact, Barrenjoey analysts said, "While we remain positive on the long-term outlook for lithium, the short-term outlook is less clear, with a clear acceleration in China EV sales needed to allay market fears."

January's decline is likely linked to the government's plan to end subsidies for EVs. But it's fuelling concerns that demand growth may slow just as supply growth looks set to explode.

Too much lithium?

ASX 200 lithium stocks could come under pressure more from a potential excess supply hitting the markets than from any big fall in demand.

And some analysts are forecasting this will see prices for the battery-critical metal continue to fall.

Chinese spot prices for lithium carbonate have dropped from some 600,000 yuan ($128,000) per tonne at the November peak to around 400,000 yuan ($86,000) today.

Commenting on market dynamics, vice president at Rystad Energy Susan Zou said (as quoted by Reuters):

Demand is still healthy, but battery and EV makers are currently destocking instead of placing new orders. The subdued spot demand therefore is weighing on sentiment and pressing down prices..

A lithium carbonate price of 200,000-300,000 yuan per tonne is where both upstream and downstream will feel comfortable.

"Supply is coming on stream faster than you can say 'boo'," Ord Minnett analyst Dylan Kelly added. "Demand remains strong, but prices have been unsustainable for some time now."

Indeed, many lithium miners are not yet at the production stage. As they do begin producing, global supplies will ramp up.

Even among the ASX 200 lithium stocks, only Allkem, Mineral Resources, and Pilbara Minerals are currently producing.

Core Lithium looks to be next in line. Maiden spodumene concentrate production from its Finniss Lithium Project is expected to commence in the first half of 2023.

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The ASX 200 lithium stocks have been buoyed by soaring demand for lithium, a critical element in most EV batteries.

Although lithium prices have tumbled some 30% since hitting record highs last year, as short-term supply catches up to demand, the big miners are still handily outperforming the benchmark.

Here's how their share prices have moved over the last 12 months:

• Pilbara Minerals Ltd (ASX: PLS) shares are up 54%
• Core Lithium Ltd (ASX: CXO) shares are up 20%
• Allkem Ltd (ASX: AKE) shares are up 25%
• IGO Ltd (ASX: IGO) shares are up 19%
• Mineral Resources Ltd (ASX: MIN) shares are up 82%

So, why are these ASX 200 lithium shares watching China?

ASX 200 lithium shares eyeing 10% cut in global lithium supply

China is not only the world's top producer of EVs, but it also produces some 75% of the world's lithium-ion batteries. And according to the International Energy Agency, the Middle Kingdom accounts for around 60% of global lithium supplies.

And it's this supply-side factor that will be drawing the interest of ASX 200 lithium shares.

This comes as news breaks that environmental officials are investigating lithium miners in Yichun, Jiangxi province for breaching regulations.

Yichun produces approximately 10% of the annual global lithium supply.

As Bloomberg reports, ore-processing operations in Yichun have been brought to a halt as the investigation takes place. It's not yet known how long the closure orders will remain in place.

The refineries are still running.

What are the experts saying?

Commenting on the environmental crackdown that's being followed by ASX 200 lithium shares and miners around the world, Susan Zou, an analyst at Rystad Energy said, "This supervision may mean that the inspection and control over lepidolite mining in China will be more stringent in the future."

Lepidolite is a lithium-bearing mineral. And analysts had expected Jiangxi province would provide significant new supplies.

The big question now, and one which could well impact the price of lithium and hence ASX 200 lithium shares, is how long the shutdowns will last.

China's annual parliamentary meetings take place in March.

"At present, the market speculation is that the probe may stop after the two sessions in China next month," Zou said.

Chris Berry, president of industry consultancy House Mountain Partners, added (quoted by Bloomberg):

Any mine would typically have a stockpile of ore in place, so as long as the refineries are operating, you aren't likely to see any whipsaw in lithium pricing. Should these mines be halted for months, then this becomes a different story.

Certainly, a story worth following.

The post Why ASX 200 lithium shares are eyeing this surprising new Chinese move appeared first on The Motley Fool Australia.

Lithium has been the headline star of battery minerals among ASX investors in recent years.

But with the stock prices of most of the producers now fully priced, what about some of the other ingredients necessary for a net-zero future?

Nickel is known to be one of those minerals. The importance of its role is reflected in how the nickel price has risen about 35% since July.

So should you invest in a nickel miner and, if so, which ASX shares are the best investments?

Shaw and Partners portfolio manager James Gerrish answered this very question this week.

Future of nickel in batteries is under a cloud

Gerrish has one warning for investors considering buying nickel mining ASX shares.

"High energy lithium-ion batteries use nickel, cobalt and manganese, whereas LFP batteries use lithium iron phosphate, a non-toxic material, as the cathode material. That is, no nickel," he said in a Market Matters Q&A.

LFP is starting to eat into lithium-iron's market share. 

According to power systems manufacturer Cummins, LFP batteries are cheaper to produce and can be charged to 100% without degradation.

And, as Gerrish mentioned, LFP is safer due to the absence of toxic materials.

"With [LFP] gaining more traction of late, nickel has lost some of its lustre as an ESG investment making this no longer an area Market Matters wants to be aggressively long."

Which ASX nickel stock is best? IGO vs Mincor

But if he had to dip into the nickel industry, Gerrish was asked whether he would choose IGO Ltd (ASX: IGO) or Mincor Resources NL (ASX: MCR).

Mincor is a specialist nickel producer, whereas IGO extracts other minerals as well as nickel.

"We prefer IGO over Mincor in the nickel/lithium/EV space," said Gerrish.

"This is a rapidly evolving industry where we would like to stick with the proven names who are making a profit and paying a dividend."

The market conditions at the moment are not rewarding future potential for earnings growth, he added.

"Market Matters holds IGO in our flagship growth portfolio, but only with a relatively small 3% weighting."

The IGO share price has risen 23% in the past 12 months, whereas Mincor has dipped 32% over the same period.

The post Are ASX nickel shares worth investing in? appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) lithium shares have offered investors some very strong returns amid soaring prices for the battery-critical metal.

Yet while longer-term investors should be sitting on some healthy gains, not all of the blue-chip lithium stocks pay a dividend.

In fact, if you'd asked me yesterday, I would have said that only two of the five ASX 200 lithium shares currently offer investors a dividend payout.

But that figure jumped to three out of the five this morning, when Pilbara Minerals Ltd (ASX: PLS) reported stellar half-year results and announced its maiden dividend.

As of now, neither Core Lithium Ltd (ASX: CXO) or Allkem Ltd (ASX: AKE) shares offer dividend yields.

Which brings us to…

Which ASX 200 lithium share pays the highest dividend yield?

IGO Ltd (ASX: IGO) reported its half-year results on 31 January.

The ASX 200 lithium share reported record half-year net profit after tax (NPAT) of $591 million, up 550% from the $91 million reported in H1 FY22.

This saw the IGO board declare a record interim dividend of 14 cents per share, fully franked.

That brings IGO's full-year dividend payouts to 19 cents per share for a trailing yield of 1.4%.

Next up we have Mineral Resources Ltd (ASX: MIN).

Mineral Resources reported its half-year results this morning.

With the six-month NPAT up 1,890% year on year to $390 million, the Mineral Resources board offered up a boosted, fully franked interim dividend of $1.20 per share.

That brings the Mineral Resources full-year dividend payout to $2.20 per share for a trailing yield of 2.6%.

Finally, we have Pilbara Minerals.

As mentioned up top, Pilbara Minerals' board declared the first-ever dividend payout for the ASX 200 lithium share.

With NPAT for the six months soaring to $1.24 billion, up 989% from H1 FY22, Pilbara Minerals will pay an 11 cents per share, fully franked interim dividend.

At the current share price, that represents a trailing yield of 2.4%.

So the winner is…

With a 2.6% trailing dividend yield, Mineral Resources edges out Pilbara Minerals as the ASX 200 lithium share with the highest current yield.

Mineral Resources also leads the pack in share price gains, with its shares up 92% since this time last year.

The post Which ASX 200 lithium share takes the crown for dividend yield right now? appeared first on The Motley Fool Australia.

There is no question ASX 200 lithium stocks have been the gift that just keeps on giving over the past few years. However, the consistent 'up and to the right' trajectory of these investments could now be in jeopardy according to some analysts.

The doubt surrounding producers of the critical electrifying material began to creep in towards the end of January. Since then, many of the most popular lithium shares on the ASX have experienced dwindling share prices.

Yesterday, analysts added to the waning optimism amid 'negative' industry developments.

Is the demand landscape shifting?

Evergrowing demand for electric vehicles (EVs) — and the batteries they require — has been an integral component of sustained lithium demand at elevated prices. If this is to be believed, it must also apply if the reverse is true — declining battery demand.

For the last two years, such a scenario would almost be considered unfathomable. Today, though, the environment is certainly different.

The unwavering determination of central banks to crush inflation has upsized the possibility of a recession. Even one of Australia's major banks, National Australia Bank Ltd (ASX: NAB), is forecasting Australia's economy to fly daringly close to the sun over the coming quarters.

Hence, the possibility of falling demand for EVs wouldn't be completely unfounded.

This year so far has witnessed lithium carbonate prices tumble around 30%. As pictured above, this has occurred hand in hand with falling growth in China's EV sales. Now analysts are concerned about the reduced demand flowing upstream.

Yesterday, Morgan Stanley highlighted a move from CATL — one of the world's largest EV battery manufacturers — to sell some of its batteries at a significant discount to spot prices.

In our view, this may be reflective of CATL's concern on the overcapacity issue and slowing EV demand, and its expectation that lithium prices will further normalise in coming years. We think discounting is expected to impact pricing expectations negatively.

Rachel Zhang, Morgan Stanley equity analyst

Analysts are also worried about the supply side of the equation, dousing added fuel on the fire for ASX lithium stocks. Ark Invest's Cathie Wood believes skyrocketing lithium prices will have incentivised additional supply which is expected to come online over the coming years, as shown below.

Are ASX 200 lithium shares still outperforming this year?

The cratering lithium price has not prevented some ASX lithium shares from continuing their upward trend this year. While the S&P/ASX 200 Index (ASX: XJO) is up a solid 4.7% year-to-date, the following lithium companies are outpacing it:

• Allkem Ltd (ASX: AKE) up 5.3%
• Mineral Resources Ltd (ASX: MIN) up 13.1%
• Pilbara Minerals Ltd (ASX: PLS) up 21.3%

Morgan Stanley currently holds an equal weight rating on Mineral Resources. Whereas Allkem and IGO Ltd (ASX: IGO) are two ASX 200 lithium stocks that the broker is underweight on.

The post Here's the latest 'bearish news' from brokers on ASX 200 lithium stocks appeared first on The Motley Fool Australia.

After a heavy decline on Monday, they are rebounding strongly this afternoon.

ASX lithium shares rebound

Here's what is happening in the lithium industry today:

• The Allkem Ltd(ASX: AKE) share price is up 3%
• The Core Lithium Ltd(ASX: CXO) share price is up 4%
• The IGO Ltd (ASX: IGO) share price is up 2%
• The Lake Resources N.L.(ASX: LKE) share price is up 4%
• The Liontown Resources Ltd(ASX: LTR) share price is up 4%
• The Pilbara Minerals Ltd(ASX: PLS) share price is up 4%

What's happening?

On Monday, investors were selling off ASX lithium shares amid news that the world's largest battery maker, CATL, is offering discounts to Chinese automakers.

According to Reuters, these discounts are being offered in response to a downturn in the price of lithium and a bid to win more orders. This sparked fears that this was an indication that CATL believes prices are going to be coming down rapidly from recent highs.

However, a note out of Canaccord Genuity this morning could have eased investor nerves. It has responded positively to an update out of Pilbara Minerals on Monday regarding a new sales arrangement for a 15,000 tonne cargo of spodumene concentrate.

This agreement has been structured to be based on a tolling arrangement under which Pilbara Minerals will receive the value of lithium hydroxide price for the product sold less an agreed amount for conversion and other costs.

Canaccord Genuity was pleased with the news and notes that the pricing implied by the agreement is "well north of our US$4,500/t MarQ'23 assumption and US$3,500/t JunQ'23 assumption."

All in all, the broker appears confident that Pilbara Minerals is well-placed to deliver strong earnings in the near term and appears to see recent weakness is a buying opportunity. As a result, it has retained its buy rating and $5.00 price target on this ASX 200 lithium share.

Investors appear hopeful that sky high prices may not be over as feared, at least for now.

The post Why are ASX 200 lithium shares having such a stellar run today? appeared first on The Motley Fool Australia.

The Core Lithium Ltd (ASX: CXO) share price is charging higher today, up 5.11% in afternoon trading to 97 cents per share.

This comes after shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock dropped 4.2% yesterday, closing at 92 cents per share.

So, what's driving the rebound?

What are ASX 200 investors considering?

It's not just the Core Lithium share price that's widely outperforming the 0.3% loss posted by the ASX 200 so far today.

In fact, all of the ASX 200 lithium shares are well into the green.

Here's how they're tracking at the time of writing:

• Allkem Ltd (ASX: AKE) shares are up 2.26%
• Pilbara Minerals Ltd (ASX: PLS) shares are up 4.64%
• IGO Ltd (ASX: IGO) shares are up 2.59%
• Mineral Resources Ltd (ASX: MIN) shares are up 4.16%

With no price-sensitive news out today, the Core Lithium share price looks to be benefiting from a broader investor rethink about the outlook for lithium prices.

The battery-critical metal hit all-time highs in November but has fallen some 30% since then amid speculations of supply and demand imbalances.

Several prominent analysts, including those at Goldman Sachs, have been forecasting a looming supply and demand imbalance in 2023, which would drive the lithium price even lower. This has seen some investors lighten their holdings of ASX lithium stocks.

However, the quarterly results released last week by US lithium giant Albemarle Corporation (NYSE: ALB) suggest demand for lithium may prove more resilient than these bearish forecasts suggest. And that could usher in more tailwinds for the Core Lithium share price in the months ahead.

Albemarle posted a whopping 444% increase in its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), which came in at US$1.2 billion.

Net sales of US$2.6 billion were up 193%, buoyed by a 410% increase in lithium net sales of US$2.1 billion. Albemarle reported it received 328% higher pricing net of FX for lithium during the quarter, partly driven by increased market pricing.

For its full-year 2023 guidance, the company expects net sales to increase between 55% to 75% "primarily driven by market demand and continued favourable pricing for lithium".

Albemarle also has a bullish outlook for EV production in China, the world's top EV manufacturer. It expects China to produce approximately 2.5 million more EVs in 2023 than the nation did in 2022.

The company noted, "Chinese EV sales typically rebound following subsidy reductions and COVID lockdowns."

With some 75% of the world's consumption of lithium currently going into rechargeable batteries, that equates to some healthy demand growth. And it could indicate some more big days ahead for the Core Lithium share price.

Core Lithium share price snapshot

With today's intraday gains factored in, the Core Lithium share price is up 22% over the past 12 months.

The post Why is the Core Lithium share price rebounding 5% on Tuesday? appeared first on The Motley Fool Australia.

The Lake Resources NL (ASX: LKE) share price closed Friday's session down 3.8% to 63.5 cents.

This caps off a hideous month for the ASX lithium share, which has slid 22% over this short period.

Why is the Lake Resources share price falling so much?

So, let's get a bit of context here. Lake Resources is not the only ASX lithium share that has been falling over the past month.

Take a look:

• Sayona Mining Ltd (ASX: SYA) shares are down 13%
• Core Lithium Ltd (ASX: CXO) shares are down 7%
• Allkem Ltd (ASX: AKE) shares are down 2.9%
• Liontown Resources Ltd (ASX: LTR) shares are down 10%
• IGO Ltd (ASX: IGO) shares are down 5%.

But you see the problem, right?

It's the scale of the Lake Resources share price fall at 22% that stands out.

Most of these ASX lithium shares are down, at least partly, due to some bearish outlooks for lithium prices. But that's a common factor affecting all lithium stocks. Why is Lake Resources down so much more?

Short seller attack

A few lithium stocks are being targeted by short sellers right now, and Lake Resources is one of them.

Short-selling is a trading strategy where investors try to profit from a fall in the share price. They borrow, then sell the shares, with the intention of buying them back later when they fall in value to make a profit.

As my colleague James reported this week, Lake Resources remains among the ASX's 10 most shorted stocks with 7.6% of its capital currently shorted. But there are a few lithium stocks on that list.

Core Lithium actually has a higher short interest than Lake Resources with 9.6% of its shares shorted. But as James points out, the reason for that shorting is valuation concerns. A bunch of investors think the Core Lithium share price is too high right now, so they're betting on a correction.

The unique element of the short activity on Lake Resources is that it's being directly attacked by a United States short-selling activist group called J Capital.

In July last year, J Capital released a report questioning operational matters relating to Lake Resource's technology and project funding.

Lake Resources responded at the time saying the report "puts forth incorrect information on technical matters and inaccurate assertions … ".

J Capital has issued further reports since then, with the latest report released in December.

In short, J Capital doesn't believe Lake Resources can achieve what it says it can, and they're proactively hassling them on the details.

Should you buy Lake Resources?

This sort of thing is pretty confusing for ordinary investors. Many people don't even understand what short selling is because it's not a trading strategy that is typically available to retail investors. It's the domain of institutional and sophisticated investors, like hedge fund managers.

To state the obvious, buying an ASX share that is the subject of a short attack is pretty gutsy. You need to really understand the ins and outs of the Lake Resources business and what J Capital is saying about it.

In order to decide whether to buy Lake Resources shares or not, prospective investors would have to do an enormous amount of research to satisfy themselves that what J Capital is saying isn't right.

And that research is on top of the usual fundamental analysis that every investor should do on every ASX share they are considering investing in.

So, we're talking about a serious time commitment here, and this might be one reason why the Lake Resources share price isn't trading so well at the moment.

The post Down 22% in a month, is it time to dive in and buy Lake Resources shares? appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) lithium shares have garnered plenty of investor attention due to their outsized returns. 

Even after smashing the benchmark returns in 2022, all but one of the blue-chip lithium companies is outpacing the ASX 200 again this year.

Since the opening bell on 3 January, the ASX 200 is up 6.6%.

Here's how the ASX 200 lithium shares have performed over that same period:

• Core Lithium Ltd (ASX: CXO) shares are down 1.0%
• Allkem Ltd (ASX: AKE) shares are up 12.4%
• Pilbara Minerals Ltd (ASX: PLS) shares are up 30.0%
• IGO Ltd (ASX: IGO) shares are up 7.9%
• Mineral Resources Ltd (ASX: MIN) shares are up 16.3%

The strong performance has been driven by soaring demand for – and the soaring price of – lithium, a critical element in most EV and home storage batteries.

While the lithium price has fallen from its 2022 record highs, the price remains elevated by historic standards. And all signs point to growing demand in the years ahead.

Which brings us to the US$1 trillion (AU$1.45 trillion) milestone.

Global spending on EVs is surging

According to a new report, published by Bloomberg, global spending on passenger EVs leapt 53% in 2022 year on year.

All told, consumers around the world splashed out US$388 billion on new passenger EVs last year.

That's good news for ASX 200 lithium shares, as approximately 75% of the world's consumption of lithium goes into rechargeable batteries.

2022's figures have now seen the total value of passenger EVs sold over the past 10 years (when EVs first began to make real inroads) hit US$1 trillion.

Granted, that's only around 4% of the total value of all passenger vehicles sold over the last decade (some US$25 trillion).

But when seeking out long-term investments, it can pay to look for these kinds of mega-growth trends with a lengthy horizon ahead of them.

Indeed, according to Bloomberg's analysis, passenger EV sales are likely to surpass US$500 billion in 2023. That represents a 29% annual growth rate.

That will see lithium demand continue to ramp up and should offer some ongoing tailwinds for ASX 200 lithium shares.

The best-performing ASX 200 lithium share over 12 months

Up top we looked at how the big lithium miners have performed so far in 2023.

But which one is leading the pack over the past 12 months?

With a nod to the runner-up, Pilbara with a 52% share price gain over 12 months, the best-performing ASX 200 lithium share for the full year is Mineral Resources.

As you can see in the chart below, the Mineral Resources share price is up a whopping 77% since this time last year.

Boom!

The post Why this US$1 trillion milestone matters for ASX 200 lithium shares appeared first on The Motley Fool Australia.

Here's how the big lithium companies have been tracking since the opening bell on 3 January:

• Core Lithium Ltd (ASX: CXO) shares are flat
• Allkem Ltd (ASX: AKE) shares are up 13%
• Pilbara Minerals Ltd (ASX: PLS) shares have gained 34%
• IGO Ltd (ASX: IGO) shares are up 9%
• Mineral Resources Ltd (ASX: MIN) shares have gained 16%

By comparison, the ASX 200 is up 7% over the same period.

That's certainly a very healthy performance for investors holding an even-weighted basket of these ASX 200 lithium stocks.

But could a new rally be on the cards to rival the mammoth gains posted by the miners in 2021?

Could this advancement spur a new rally for ASX 200 lithium stocks?

The advancement in question relates to lithium-metal batteries, as opposed to the lithium-ion batteries currently used in most EVs.

Rather than storing lithium ions in electrode materials within the battery, lithium-metal batteries have a layer of lithium at one of the electrodes. This makes them lighter and, potentially, superior designs.

Oh, and they also won't catch fire.

But, as Popular Mechanics reports, lithium-metal batteries are prone to short circuit. That's caused by dendrites, microscopic cracks in the ceramic electrolyte.

Which has left scientists puzzled. Until now.

In a discovery that could change the makeup of batteries, and spur fresh demand for ASX 200 lithium stocks, researchers at Stanford University and the SLAC National Accelerator Laboratory uncovered why dendrites form in lithium-metal batteries.

Apparently, these occur from any indentation or impurities within the batteries, which cause nanoscopic cracks in the ceramic solid electrolyte, resulting in short circuits.

According to lead co-author William Chueh (as quoted by Popular Mechanics):

Just modest indentation, bending or twisting of the batteries can cause nanoscopic fissures in the materials to open and lithium to intrude into the solid electrolyte causing it to short circuit. Even dust or other impurities introduced in manufacturing can generate enough stress to cause failure.

What's next?

ASX 200 lithium stocks aren't likely to benefit from the latest advancement overnight.

But the researchers have now turned their attention to strengthening the electrolyte during manufacturing. They're also investigating ways to coat the ceramic barrier, enabling it to repair any dendrites when those occur.

If the next phase of the research bears fruit, ASX 200 lithium stocks may be dominating financial news headlines once more.

The post Could this new advancement reignite ASX 200 lithium stocks? appeared first on The Motley Fool Australia.

The IGO Ltd (ASX: IGO) share price has had a ripper decade, surging 208% since February 2013. But how much has the mining giant returned if we also factor in its dividends?

If one were to have bought $1,000 of IGO shares 10 years ago, they probably would have ended up with 210 shares, paying $4.75 apiece.

The value of that parcel has exploded over the years. The IGO share price currently trades at $14.64, leaving a 210-strong-parcel with a value of $3,074.40.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen around 51% in that time.

But how much have those invested in the ASX 200 mining share received in dividends? Let's take a look.

All the dividends offered by IGO shares since 2013

Here are all the dividends offered by IGO since early 2013:

As the chart above shows, those invested in IGO stock have likely received 66.5 cents of passive income per share they've held over the decade just been.

That means our figurative $1,000 investment has probably yielded $129.15 of dividend income – a minuscule amount compared to the capital gains on the table in that time.

Though, it is enough to boost our imaginary investor's total return on investment (ROI) to around 221%, before considering any tax benefits potentially brought about by franking credits.

Still, it's likely little surprise that IGO shares aren't typically heralded for their dividends. The stock currently offers a mere 0.68% dividend yield.

The post Did you buy $1,000 of IGO shares 10 years ago? If so, here's how much dividend income you've earned appeared first on The Motley Fool Australia.

Three ASX shares brokers have named as buys this week are listed below. Here's why they are bullish on them:

IGO Ltd (ASX: IGO)

According to a note out of Citi, its analysts have retained their buy rating on this battery materials miner's shares with a slightly trimmed price target of $17.10. Citi was pleased with the company's performance during the first half and the record interim dividend. And while it suspects that lithium prices may have peaked, it still sees IGO benefitting from strong pricing for some time. The IGO share price is trading at $14.76 on Wednesday.

Megaport Ltd (ASX: MP1)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this network services company's shares with a reduced price target of $8.10. While Goldman wasn't too impressed with operational trends during the first half, it remains positive on the company. This is due to Megaport having a clear product advantage versus peers and a decade-long runway for robust growth. The Megaport share price is fetching $5.78 this afternoon.

Pointsbet Holdings Ltd (ASX: PBH)

Analysts at Bell Potter have retained their speculative buy rating but cut their price target on this sports betting company's shares to $3.50. This follows the release of a solid quarterly update earlier this week. And while Bell Potter believes that PointsBet will require a $100 million equity raising in FY 2024, it isn't putting the broker off. It appears to believe that the company's shares are a great long term option due to its very large opportunity in North America. The Pointsbet share price is trading at $1.48 on Wednesday.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Materials Index (ASX: XMJ) closed 0.76% lower today, but three ASX lithium shares fell much harder.

The IGO Ltd (ASX: IGO), Leo Lithium Ltd (ASX: LLL), and Loyal Lithium Ltd (ASX: LLI) share prices all finished well in the red today.

For perspective, multiple ASX 200 lithium shares also closer lower. For example, Core Lithium Ltd (ASX: CXO) lost 5.69%, while Pilbara Minerals Ltd (ASX: PLS) shares shed 5%.

Let's take a look at what three ASX lithium shares reported to the market today.

IGO

IGO shares closed down 7.08% today despite the company reporting record earnings before interest, taxes, depreciation and amortisation (EBITDA) in today's half-year financial report.

The company's EBITDA soared 269% on the prior corresponding half to $834 million. The company also delivered a record net profit after tax (NPAT) of $591 million, a 549% increase on H1FY22.

The board declared a 14 cents per share fully franked interim dividend for FY23, another record for IGO shareholders. The record date of the dividend will be 17 March 2023 and payment is planned for 31 March.

Commenting on the results, IGO acting CEO Matt Dusci said:

Strong lithium prices combined with a growing production profile at Greenbushes, generating outstanding financial returns for shareholders, while the team continues to focus on expanding the mine and processing capacity to deliver on future production growth.

Leo Lithium

Leo Lithium shares tanked 9.63% today to 61 cents apiece. This lithium company has a goal of becoming West Africa's first lithium producer.

Today, Leo Lithium reported a cash balance of $70.8 million as of 31 December.

The resource base at the company's Goulamina Lithium Project in Mali lifted by 33.8 Mt to 142.3 Mt. The Goulamina joint venture held US$108.5 million in cash at the end of the quarter.

Leo Lithium reported that early revenue from the export of direct shipping ore is forecast for the second half of 2023.

Its first spodumene concentrate product is targeted for the second quarter of 2024.

Commenting on the results, managing director Simon Hay said:

The December quarter was a transformational one for Leo Lithium. Only a few weeks ago we received the results from a considerable resource upgrade which exceeded our expectations, confirming the large-scale, high-grade resource at Danaya, and creating new drilling targets for the team. The results also support the possible extension of the current 23-year mine life of the Goulamina Project.

Loyal Lithium

Loyal Lithium shares lost 8.26% on Tuesday. The lithium explorer reported it holds about $6.57 million cash as of 30 December. The company has executed a $4.5 million placement to boost lithium exploration.

Loyal Lithium said it is continuing to execute its strategic business plan, with a focus on North American lithium.

Loyal reported strong lithium and boron results at the Scotty Lithium project. Exploration work is continuing at the project.

At the Brisk Lithium Project, an inaugural field program was completed, revealing more pegmatite outcrops than expected.

At the Triest Lithium project, the company is planning to conduct field mapping in Spring 2023. This project is located 14km east of Winsome Resources' Adina Lithium project, which recently showed a "significant mineralised intercept".

A highlight for the company during the quarter was the formal name change and launch of the company's website www.loyallithium.com in November 2022.

The post 3 ASX lithium shares hammered after quarterly updates on Tuesday appeared first on The Motley Fool Australia.

Shares in the leading lithium stock closed yesterday trading for $15.68 and are currently changing hands for $15.30 apiece.

This comes following the release of the company's half-year results for the six months ending 31 December (H1FY23).

Read on for the highlights.

IGO share price slips despite profits hitting all-time highs

The IGO share price is in the red despite the ASX 200 lithium share reporting a series of new financial records.

Those included a record half-year of underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $834 million. That's up 269% from the $226 million reported in the first half of the 2022 financial year.

Net profit after taxes (NPAT) was also a new half-year record, coming in at $591 million, up from $91 million in H1FY22. That was driven by record production and earnings at the company's Greenbushes project.

Meanwhile, IGO's revenue was up 43% year on year to $542 million. IGO reported its first revenue contribution from the Forrestania project during the half year.

The ASX 200 lithium share held cash on its balance sheet of $590 million as at 31 December with net debt of $175 million.

And investors will be pleased with the 14 cents per share, fully franked interim dividend that management declared. That's also a new record.

The period was marred by the death of former CEO Peter Bradford on 15 October, which IGO's acting CEO Matt Dusci said was "a devastating shock to the IGO family".

What did management say?

Commenting on the results, Dusci said:

Strong lithium prices combined with a growing production profile at Greenbushes, generating outstanding financial returns for shareholders, while the team continues to focus on expanding the mine and processing capacity to deliver on future production growth.

At Kwinana, the declaration of commercial production from Train 1 was a key milestone for the half-year and we remain focused on progressing the ramp up of Train 1 and Financial Investment Decision on Train 2 over CY23.

As for IGO's nickel segment, Dusci added:

Our group nickel business result was impacted by a fire at the Nova Operation in December, offset by improved nickel prices during the period. At Cosmos, we delivered a revised development plan in September and project development activity is progressing well.

IGO share price snapshot

The IGO share price has been a strong performer over the past 12 months, up 30% despite today's dip.

And investors who bought into the ASX 200 lithium share five years ago will be sitting on gains of 215%.

The post ASX 200 lithium share IGO slips despite record half-year profits and dividends appeared first on The Motley Fool Australia.

Lithium prices could remain elevated for longer, according to analysts at Macquarie equities.

ASX 200 lithium explorers include Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Ltd (ASX: MIN), Core Lithium Ltd (ASX: CXO) and IGO Ltd (ASX: IGO).

Pilbara shares are rising 2.14% today, while Core Lithium shares are leaping 4.20%. Mineral Resources shares are climbing 0.02%, while IGO shares are descending 0.63%.

Let's take a look at the outlook for the lithium price.

What's ahead?

Lithium prices can weigh on company earnings, hence the share price of ASX 200 lithium shares.

Analysts at Macquarie Bank Ltd (ASX: MQG) are optimistic lower lithium supply amid development delays and capex upgrades could be a positive for the lithium price, The Australian reported.

Macquarie's team is positive on ASX 200 lithium shares Mineral Resources and IGO, while it is also impressed with Pilbara's "full lithium exposure" via its Pilgangoora operation in WA.

Commenting on lithium supply, the Macquarie equities team said:

A struggling lithium supply could keep lithium prices higher for longer, a silver lining for the lithium industry.

Pilbara delivered a 10% increase in spodumene concentration production in the December quarter to 162,151 dry metric tonnes, as my Foolish colleague James reported last week.

Meanwhile, Argosy Minerals Limited (ASX: AGY) has shared an upbeat outlook for lithium in today's quarterly activities report.

In comments today, Argosy highlighted the "growing expectations across the market that supply will remain tight over 2023".

Significant growth in EV sales remains the most material driver for future lithium demand.

Share price snapshot

Pilbara Minerals shares have surged 56% in the last year, while Core Lithium shares have soared nearly 61%.

IGO shares have leapt 33% in the last year, while Mineral Resources shares have exploded 71%.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has soared nearly 14% in the last year.

The post Why lithium prices could be 'higher for longer': Macquarie appeared first on The Motley Fool Australia.

The S&P/ASX 200 Materials Index (ASX: XMJ) lifted 1.26% in Tuesday trading, but four ASX 200 lithium shares soared considerably higher.

Lithium explorers IGO Ltd (ASX: IGO), Allkem Ltd (ASX: AKE), Mineral Resources Ltd (ASX: MIN), and Pilbara Minerals Ltd (ASX: PLS) all leapt on the market today.

Let's take a look at what may have impacted these lithium companies today.

What's going on

IGO shares rose 4.49% today, while Mineral Resources shares jumped 5.28%. Meanwhile, Pilbara shares gained 5.18% and Allkem shares climbed 3.45%.

Today's lift in ASX lithium shares comes amid broker upgrades from analysts at UBS. The broker upgraded Mineral Resources and IGO to a buy and Pilbara Minerals to neutral, while it retained its buy rating on Allkem, the Australian Financial Review reported.

UBS has lifted its lithium price outlook by up to 50%, according to the publication. Commenting on lithium, UBS analyst Lachlan Shaw said:

We believe lithium markets will remain in deficit for the near and medium term before moving to structural deficit long term.

This needs a demand rationing price, for which we have seen no evidence in the past 12 months despite record-high prices that are orders of magnitude above costs

Meanwhile, Pilbara Minerals has also just received positive broker coverage from Morgans, as my Foolish colleague James reported this morning.

Morgans has maintained an add rating on Pilbara shares and lifted the price target to $5.40.

Commenting on Pilbara, analysts said:

We maintain our ADD rating given the upside that we see to our target price. The company's growing cash balance gives it options for capital management including buybacks or a special dividend.

Share price snapshot

The IGO share price has risen 25% in the last year.

Mineral Resources shares have exploded 56% over the past 12 months.

Pilbara shares have risen 46% in the last 52 weeks.

Allkem shares have soared 39% in the past year.

The post Guess which four ASX 200 lithium shares charged higher today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) continued its upwards trajectory today, posting a 0.44% gain to close at 7,490.4 points. That sees it just 1.8% lower than its all-time high – reached in 2021.

Meanwhile, the market geared up to learn of the latest Australian inflation figures, set to drop tomorrow. Some experts are hopeful the cash-eating measure that wreaked havoc on markets in 2022 peaked in the December quarter, my Fool colleague James reports.

Perhaps in anticipation, the S&P/ASX 200 Real Estate Index (ASX: XRE) posted today's biggest gain, lifting 1.8%.

Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) rose 1.3% following a strong session for the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC). It surged 2% overnight.

On the other hand, the S&P/ASX 200 Financials Index (ASX: XFJ) lost ground on Tuesday, falling 0.25%, dragged down by many of the big four banks.

So, having covered all that, let's take a gander at today's 10 top-performing ASX 200 shares.

Top 10 ASX 200 shares countdown

The index's biggest gains came from the Breville Group Ltd (ASX: BRG) share price today. It soared 7.5% to close at $22.39.

That's despite no news having been released by the manufacturer of small appliances.

These shares made today's biggest gains:

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.