Lithium stocks rally after upbeat analysts outlook
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The news: Lithium miners were among the top performing ASX 200 stocks today with three lithium producers making up the biggest gainers after analysts flagged growing demand for EV and Battery Energy Storage Systems (BESS).
Liontown (+12.70%), Mineral Resources (+5.03%) and PLS Group (+5.02%) pushed the mining sector higher.
The context: Morgan Stanley reported 6% growth in China's battery electric vehicle (BEV) in November, a 29% increase year-to-date.
Morgan Stanley analyst Jack Lu said the outlook for lithium demand remains positive and expects strong energy storage system demand to continue. He added that he prefers Pilbara Minerals and Mineral Resources over IGO, citing better growth optionality.
UBS analysts also sees EV output to remain stable with a 17% increase year-on-year and forecast a surge in BESS demand, citing strength in battery raw materials demand.
The sources: Morgan Stanley research , UBS analyst research
