Lithium, miners and explorers surge in COP28-fuelled rally

The news: The price of lithium staged a rebound overnight, fuelling big share price gains for a number of ASX-listed miners and explorers, after nearly 200 nations struck a deal at the COP28 climate conference to reduce fossil fuel consumption.

The numbers: Lithium futures on China's Guangzhou Futures Exchange surged almost 10% before the end of the session on Wednesday after grinding more than 60% lower since mid-2023 as part of a broader downtrend that began after hitting all-time highs in November 2022. ASX-listed lithium plays like Allkem (+9.5%), Pilbara Minerals (+8.9%) and Liontown Resources (+8.9%) all rallied on Thursday after months of broader declines.

The context: The COP28 deal calls for "transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner ... so as to achieve net zero by 2050 in keeping with the science," Reuters reports. More than 100 nations had lobbied for stronger language but came against opposition the Saudi Arabia led OPEC+ group of oil producing nations.