Lithium stocks rally after UBS upgrades forecasts for battery storage demand

The news: Lithium miners were among the top performing stocks in the ASX200 today following UBS analysts forecast lift on Friday amid an 11% increase in demand of Battery Energy Storage Systems (BESS).

The numbers: Pilbara Minerals (+5.9%), IGO (+2.9%), Liontown (+10.9%), Mineral Resources (+3.5%) were all trading higher as of 2:52pm AEDT.

The context: UBS' global battery team have increased their short to medium term lithium forecast by 64%. They see material upgrades to earnings-per-share price targets by 11-125%. UBS have upgraded PLS and IGO to neutral rating from a previous sell.

What they said: UBS analyst Lachlan Shaw said rising BESS demand and robust autos sees lithium demand upgraded by 10% and prices by up to 150% through 2026-28.