Shares in the ASX’s biggest pure play lithium miner have surpassed $4 for the first time in 18 months on the back of bullish predictions out of China.

The Dale Henderson-led PLS added 13¢ on Tuesday to finish trade at $4.09 — a monthly jump of 49 per cent and 85 per cent since the start of this year.

The share price ascent is causing headaches for investors betting on PLS’ demise, with almost 14 per cent of the company’s stock in the hands of short sellers — the third most for any ASX-listed company.

PLS’ latest growth spurt came after the chairman of major lithium supplier Ganfeng predicted demand for the battery commodity would surge 30 to 40 per cent next year.

Sentiment for lithium is rebounding after a slower-than-expected uptake of electrical vehicles combined with booming mine o

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