Lithium stocks are on the rise following positive first quarter earning results released by Albemarle Corp (ALB) and Livent Corp. (LTHM) earlier this week.

Livent reported a revenue of $143.5 million this quarter, up 56% since this time last year, and expects its revenue for the full year to be between $775 and $835 million, up from its prior prediction of $540 – $600 million.

Attributing the high results to a surge in lithium demand, the company’s CEO, Paul Graves, added that the company will continue to achieve higher prices across its entire product portfolio.

Following the publication of its Q1 results, the LTHM stocks surged by nearly 30% since trading in bearish values on 3 May.

Albemarle similarly reported a surge in its first quarter 2022 earnings, having earned a net income of $432 million – a 116% year-over-year surge. The company’s net sales surpassed $1.13 billion, a 36% increase since its first quarter 2021 results.

“Many of the end markets we serve are critical for transitioning to greener energy and advancing electrification and digitalization. Our ongoing investments capitalize on the rapid growth and strong pricing trends in these markets. We continue to explore sustainable options to expand our conversion capacity and resources, including opportunities in North America and Europe,” the company’s CEO, Kent Masters said in a press statement.

Similarly to LTHM, the ALB stocks also surged by nearly 19% since its 3 May bearish values.

Both companies mine lithium, a vital component in batteries used for electric vehicles so positive results may not be the only thing driving their stock prices up.

In an earnings call for Tesla’s first quarter 2021 results last month, the company’s CEO Elon Musk pointed out that lithium stocks are a good investment to look into.

“The industry is growing fast, and I certainly encourage entrepreneurs out there who are looking for opportunities to get into the lithium business. The lithium margins right now are practically software margins,” Musk said.

“We’re seeing cases where the spot lithium price is 10 times higher than the cost of extraction. So, we’re talking 90% margins here. Can more people please get into the lithium business? Do you like minting money? Well, the lithium business is for you.”

Australian Stock Exchange (ASX) lithium stocks are also skyrocketing. Some of the top gainers include Sayona Mining Ltd (SYA) at 11%, LionTown Resources Limited (LTR) at 7.7% and Pilbara Minerals Ltd () at 7.2%.