Lithium stocks rally, buoyed by Arcadium surge
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The news: Lithium stocks are staging a comeback on the ASX after a sector-wide sell-off on Wednesday.
The numbers: Arcadium Lithium, up 38.8%, was the best performing ASX 200 stock by 1:20pm AEDT on Thursday, buoyed by its blockbuster acquisition by Rio Tinto.
Fellow lithium explorers Liontown Resources (7.6%), Mineral Resources (2.6%), Pilbara Minerals (1.6%) and IGO (1.1%) also gained.
The broader materials sector added 0.75% as the wider market rose 0.55%. Mining heavyweights Fortescue (1.4%), BHP (0.4%) and Rio (0.2%) all gained after marking losses on Wednesday.
The context: The rally by lithium stocks follows major strides in the sector last month, after the EU signalled increased investment in Australian critical minerals and following output cuts by Chinese battery giant Contemporary Amperex Technology Co.
Iron ore miners, meanwhile, dipped this week after China's economic agency failed to provide new stimulus announcements as anticipated at a briefing on Tuesday.
