The sudden surge in lithium prices is forcing hedge funds that have long bet against the sector to cover their short positions by buying more shares, turbocharging a rally in one of the most speculative pockets of the Australian sharemarket.
Prices for spodumene, the type of lithium mined in Australia, have rocketed 21 per cent over the past fortnight to $US977 a tonne, fuelled by the growing demand for large-scale battery storage needed for electricity grids and the data centres that power artificial intelligence.
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