ASX lithium shares outperform as ASX 200 tumbles to four-month low

ASX lithium shares are outperforming the broader market on Tuesday, with several stocks hitting new 52-week highs.

Meantime, the S&P/ASX 200 Index (ASX: XJO) is falling heavily, down 1.38% to a four-month low of 8,516.9 points.

Lithium prices are on the rise, with the carbonate price reaching its highest level in 14 months overnight.

Here is what's happening with ASX lithium shares today.

ASX lithium shares up while ASX 200 falls heavily

The Pilbara Minerals Ltd (ASX: PLS) share price rose 5.6% to a new 52-week high of $4.18 this morning.

Lithium and nickel producer IGO Ltd (ASX: IGO) ripped 8.2% to a 52-week peak of $7.35 per share.

The Liontown Resources Ltd (ASX: LTR) share price lifted 7.5% to a 52-week high of $1.57.

Core Lithium Ltd (ASX: CXO) shares are up 4.3% to a 52-week peak of 24 cents.

The Lake Resources NL (ASX: LKE) share price lifted 12.5% to a 52-week high of 6.3 cents.

Galan Lithium Ltd (ASX: GLN) shares are up 10% to a 52-week high of 22 cents.

Elevra Lithium (ASX: ELV) shares rose 10.8% to a 52-week high of $5.86.

Diversified miner Mineral Resources Ltd (ASX: MIN) rose 5.4% to $51.25, not far off the 52-week high of $52.69 it set last week.

Where to next for lithium prices?

ASX lithium shares are rising as demand for lithium to power batteries and new infrastructure increases, and China provides new support to its electric vehicle industry amid higher sales in 2025.

The Spodumene Concentrate Index (CIF China) Price rose 1.79% to US$1,024 per tonne overnight, up more than 20% over the past month.

The Battery-Grade Lithium Hydroxide price rose 1.05% to US$9,606.73, up 5.8% over the past month.

The lithium carbonate price is US$12,120.57 per tonne, up 16.4% over the past month and now at its highest level in 14 months.

Macquarie is bullish on lithium prices and asserts that a new price cycle is underway.

In a new note, the broker says:

Our constructive lithium view has been confirmed; however major lithium equity names are outpacing underlying Li prices.

We see opportunities for spot spodumene price to attain US $1,200-1,300/t early next year, with hurdles for further increases.

We believe CATL restart newsflow presents near-term downside, promoting profit taking; however this may be a longer-term buy-the-dip opportunity.

CATL's Jiangxi mine, which produces 3% of the global lithium supply, is set to recommence production following a brief suspension.

Macquarie has an outperform rating on three ASX lithium shares: IGO, Elevra Lithium, and Pmet Resources CDI (ASX: PMT).

The broker warns that Pilbara Minerals and Mineral Resources shares are trading at above-market implied lithium prices today.

The post ASX lithium shares outperform as ASX 200 tumbles to four-month low appeared first on The Motley Fool Australia.

Motley Fool contributor Bronwyn Allen has positions in Core Lithium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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