LAC:CC - Lithium stocks join resource rally as China mulls big stimulus package

Lithium names posted strong gains Thursday, swept up in a broad rally for stocks in natural resources and alternative energy, reacting to reports that China is considering a 1.5T yuan stimulus plan (~$220B) to boost infrastructure funding to lift its slowing economy.

Lithium Americas ( NYSE: LAC ) bounced off YTD lows to lead the group, +10.3% , followed by ( PLL ) +7% , ( SQM ) +6.9% , ( LTHM ) +4.1% , ( ALB ) +2.3% ; ETF: ( NYSEARCA: LIT ) +4.5% .

Adding to the positive sentiment, China's Tianqi Lithium reportedly raised HK$13.5B (~US$1.7B) after pricing its Hong Kong second listing at the top of a marketed range.

Tianqi reportedly sold 164.1M shares at HK$82 each, after marketing the shares at HK$69-HK$82.

Also, Brazil's government on Wednesday published an executive order loosening rules on lithium exports , saying the move could bring in more than 15B reais (~$2.8B) in investments by 2030.

Sigma Lithium ( NASDAQ: SGML ), which holds 28 concessions to explore lithium in Brazil with combined reserves estimated at 85.7M metric tons, closed Thursday +10.5% .

Sigma Lithium co-CEO Ana Cabral-Gardner told Reuters the company's Brazilian unit should start production by the end of this year .

Goldman Sachs recently warned lithium prices had peaked and will go into reverse this year as supply from unconventional new sources overwhelms demand .

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