https://www.********.au/2022/07/09/asx-battery-metals-shares-tryi...

https://www.********.au/2022/07/09/asx-battery-metals-shares-trying-to-power-up-after-a-horror-june/


ASX battery metals shares trying to power up after a horror June

Key points
*ASX battery metal shares rebounded strongly today following their drubbing in June
*The shares suffered a pullback from overbought territory as recession worries bite
* But the global trend that is driving interest in the sector remains intact despite the headwinds

ASX battery metals shares getting a recharge –
once the darlings of the ASX – are trying to make a comeback after their shock June performance.These shares include miners that produce metals like lithium and nickel, which are key ingredients in batteries.ASX battery metal shares getting a rechargeThe Liontown Resources Limited (ASX: LTR) share price surged 7.37% to $1.02 and the Allkem Ltd (ASX: AKE) share price jumped 5.23% to $10.46 at market close on Friday.This makes them the third and fifth best performer on the S&P/ASX 200 Index (ASX: XJO) this morning.These aren’t the only ASX battery metal shares that are shot the lights out today. The Pilbara Minerals Ltd (ASX: PLS) share price finished up at 6.82% at $2.35 and the IGO Ltd (ASX: IGO) share price finished up 3.21% at $9.97.
Powering off in June
The bounce stands in contrast to the horror June for the sector. These shares tumbled between 8% and 16% during that month alone.There are a few factors that have triggered the sell-off. Fears of a global recession have weighed on commodity prices. Demand for these inputs would slow significantly if economies contract.Further, ASX battery metal shares were looking overbought as they have rocketed over the past year. Investors may have gotten overexcited about the structural change from electric vehicles (EVs) and battery storage facilities.
Electrification trend intact
But regardless of these headwinds, the global trend towards EVs and battery farms remains intact. The bright outlook is due in no small part to government policies and decarbonisation ambitions.The more environmentally friendly Labor federal government also has plans to boost EV adoption in this country.Even if the world experiences a recession, it is unlikely to make much of an impact on battery metals demand over the medium to longer term.
Should you buy ASX battery metal shares?
This means the dip in ASX battery metal shares could be a buying opportunity for more patient investors.That’s the view of UBS, which sees value in ASX lithium miners despite its cautious stance towards the broader mining sector.