Seaborne lithium carbonate prices have gained more than 400 per cent since the start of 2021 while lithium hydroxide prices have climbed 254 per cent, according to S&P Global Platts data.

In comparison, the oil price has been a laggard. The price of West Texas Intermediate is currently 60 per cent higher.

Tesla’s most recent announcement on production lit a fire under the lithium and related shares on the ASX.

Tesla shares jumped more than 8 per cent yesterday after it announced it delivered more than 308,000 vehicles in the December quarter, beating analysts’ estimates.

It was Tesla’s best quarterly delivery rate to date and Elon Musk’s fortune jumped by $33.8 billion to $304.2 billion as a result.

Locally, Pilbara Minerals jumped 7 per cent and battery materials company Novonix was up 13.7 per cent. Sayona Resources jumped 11.5 per cent, while Allkem rose 7.5 per cent.

Fellow lithium stocks like Mineral Resources (up 5.2 per cent), Vulcan (up 4.8 per cent), Core Lithium (up 7.6 per cent) and Liontown (up 5.1 per cent) also benefitted.

Related companies like battery producer Li-S Energy jumped 5.2 per cent.

The surging demand comes as Brisbane-based Tritium faces a shareholder vote on its merger and listing on the American Nasdaq.

Shareholders have until midnight January 11 to vote on the deal which is expected to deliver Tritium an enterprise value of $2.2 billion.