The price boom has also flowed through to companies like battery materials provider Novonix whose share price has jumped by $2 to $7.26 since late March and lithium company Sayona whose shares have jumped 138 per cent in a month.

It also coincides with an announcement this week from Allkem that the first stage net present value of its Sal de Vida brines project in Argentina was now $US1.23 billion and had a payback on its $US271 million development costs of less than two years.

Its second stage of the project would have a pre-tax NPV of $US1.8 billion and an internal rate of return of 38 per cent.

Allkem’s shares have jumped from $9.20 a month ago to a close yesterday of $13.21 and its market value was now $8.5 billion.

Allkem recently upgraded its guidance for lithium prices by 40 per cent and stockbrokers Morgans has lifted its revenue assumptions for the company, previously known as Orecobre before its merger with Galaxy Resources.

The company’s spodumene guidance was double Morgans’ expectations.

“Battery grade carbonate demand increased by 38 per cent between 2015 and 2021,” Allkem said in its market update.

It said over a 10-year period to 2032 demand for lithium carbonate was expected to grow at 6.2 per cent a year. It forecast prices to reach $US19,000 a tonne by the end of the decade.

Morgans said it didn’t expect the spot prices for lithium carbonate to be maintained over the long term but has maintained its “add” rating for the company and said it saw potential for a 12-month upside of 23 per cent “given the ongoing tight conditions in the lithium market”.