Australian lithium stocks have experienced a significant surge following JPMorgan’s revised forecasts for long-term spodumene spot prices. The financial institution also upgraded Pilbara Minerals (PLS), Australia’s largest pure-play lithium company, from “neutral” to “overweight”. Pilbara Minerals is focused on lithium and tantalum production. The company owns and operates the Pilgangoora Project in Western Australia.
Lyndon Fagan, head of basic materials at JPMorgan, announced on Thursday that the 2026/2027 spodumene forecast has been adjusted upwards to between $1100 and $1200 per tonne, a notable increase from the previous $800. The long-term price projection has also been revised, rising from $1100 to $1300. These adjustments reflect the escalating demand for electric vehicles and the continuing uncertainty surrounding the resumption of operations at a major lithium mine in China owned by Contemporary Amperex Technology.
The earlier suspension of production at the CATL-owned mine had already triggered a substantial rally in lithium stocks back in August. Fagan noted that the lack of clarity regarding the mine’s restart timeline continues to influence pricing. In addition to upgrading Pilbara Minerals, JPMorgan also revised the ratings for Mineral Resources, IGO, and Liontown, moving them from “underweight” to “neutral”.
As of 12.38pm on Thursday, Pilbara Minerals had risen by 4.3 per cent, while Mineral Resources recorded an impressive jump of 11.3 per cent, and Liontown increased by 9.4 per cent. IGO experienced a slight decrease. These movements reflect the positive sentiment surrounding the lithium sector following JPMorgan’s updated forecasts and ratings.
