Australian Lithium Stocks Skyrocket on BMW Deal

By Ambar Warrick Shares of Australian lithium miners surged on Friday after local miner European Lithium Ltd (ASX:EUR) said it signed a supply agreement with German car maker Bayerische Motoren Werke AG (ETR:BMWG), highlighting the growing demand for the metal in automobile manufacturing.

European Lithium led gains among its peers with a 13% jump, which pushed the stock to a three-month high. Mineral Resources Ltd (ASX:MIN), the largest lithium miner in the country by market capital, jumped over 2%.

Other players, including Core Lithium Ltd (ASX:CXO), Liontown Resources Ltd (ASX:LTR) and Pilbara Minerals Ltd (ASX:PLS), jumped between 2.3% to 5.4% after the deal was announced.

European Lithium said in a press release that it had signed a memorandum of understanding with BMW to provide battery-grade lithium hydroxide to the car maker. The firm has granted BMW the first right to produce all of its lithium produced from certain resources.

The deal comes amid a widespread rush by automobile manufacturers to acquire lithium for producing batteries. Growing demand for electric vehicles has largely driven this trend.

Australian miners- which account for about half the world’s supply of lithium, have seen increasing attempts at courtship by major automobile makers, according to a Bloomberg report.

Ford Motor (NYSE:F) Co recently announced a supply agreement with Liontown for a bulk of the miner’s produce. The car maker also extended a 300 million Australian dollar (A$) loan to Liontown.

The deal follows an earlier supply agreement between Liontown and Tesla (NASDAQ:TSLA), as well as a deal with South Korean Battery maker LG Chem Ltd (KS:051915).

Growing demand for lithium has also pushed up its prices sixfold in the past year- mirroring a similar rise in the valuations of Australian lithium miners. The trend is likely to continue, as demand for electric vehicles increases.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 00 971 44 22 888

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: