ASX lithium shares are charging increased right this moment.

Main lithium shares Liontown Assets Ltd (ASX: LTR) is up 4.96% in early afternoon commerce and Pilbara Minerals Ltd (ASX: PLS) shares are up 3.61%.

This week, each ASX lithium corporations introduced on the Diggers & Sellers Mining Discussion board in Kalgoorlie, Western Australia.

As attendees heard, the long-term demand outlook for lithium – a light-weight, conductive steel essential in electrical car (EV) and residential storage batteries – stays very robust amid speedy international development in EV markets.

This, because the battery metals business is taking a look at a US$42 billion funding shortfall to fulfill that hovering demand, in accordance with Benchmark Mineral Intelligence.

Rising future deficits in lithium provide forecast

Based on Pilbara’s presentation at Diggers & Sellers, the anticipated deficit in lithium by 2040 is the equal to some 18 Pilgangooras. The ASX lithium share was referring to its Pilgangoora undertaking, one of many largest exhausting rock lithium-tantalum deposits on Earth.

It mentioned the forecast deficit comes “with seemingly pricing implications”.

Lithium costs have already leapt virtually 500% since this time final yr.

Based on Pilbara Minerals CEO Dale Henderson (quoted by Bloomberg), “The urge for food is insatiable. Any producer in lithium may be very widespread for the time being.”

In its presentation, Liontown Assets pointed to analysis from international consulting agency Boston Consulting Group (BCG). BCG expects total lithium demand development of roughly 20% per yr from 2020 by way of to 2035. This might be largely pushed by elevated demand for EV and power storage system (ESS) batteries.

Liontown CEO Tony Ottaviano mentioned (courtesy of Bloomberg):

I don’t need us to come back throughout as self-indulgent as a result of now we have immense respect for our clients, however the easy truth is it takes 5 to eight years to deliver greenfield provide on-line in tier-one jurisdictions.

Ottaviano mentioned that “curiosity was low” when the ASX lithium share approached automobile makers and different producers for its first offtake.

“Roll the clock ahead and we’re seeing a totally totally different industrial posture,” he added.

How have these two ASX lithium shares been performing?

Over the previous 12 months, the Pilbara share value is up 42% whereas the Liontown share value has gained 74%. That compares to a full-year lack of 7% posted by the All Ordinaries Index (ASX: XAO).

Roll the clock again 5 years, and these ASX lithium shares have actually shot the lights out.

For those who’d invested in Pilbara 5 years in the past, you’d be sitting on beneficial properties of 689%. As for Liontown, its shares have surged an eye-popping 14,550% in 5 years.