Why is the Core Lithium (ASX:CXO) share price hitting all-time highs today?

excited man reaching new record high on mountain side

The Core Lithium Ltd (ASX: CXO) share price is surging on Tuesday, hitting a new all-time high in the process.

The gains have come about despite no news having been released by the company. However, sentiment for lithium seems to be having a moment, with brokers bearish on stocks in the segment.

At the time of writing, the Core Lithium share price is 69.7 cents, 8.9% higher than its previous close.

That’s slightly lower than its intraday high, and new record high of 70 cents.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.7%.

Let’s take a look at what might be bolstering the lithium explorer’s stock today.

Has this sent the Core Lithium share price to new heights?

The Core Lithium share price is roaring higher today, just weeks after a top broker updated its forecasts for the lithium sector.

As my Foolish colleague Zach Bristow reported last week, JP Morgan is expecting big things from lithium in 2022.

The broker is among many believing lithium will see more demand than supply in coming years. It’s also predicting the commodity’s market will see a compound annual growth rate of 24% between now and 2030.

S&P Global Platts is also optimistic about lithium. It’s predicting a supply shortfall of around 5,000 megatons of lithium carbonate equivalent in 2022.

As per the law of supply and demand, the price of lithium should increase alongside any deficit.  

Meanwhile, Core Lithium’s other leg, its uranium assets, might also be helping to boost its share price.

On top of the company’s Finniss Lithium Project, it also owns the Napperby Advanced Uranium Project and the Fitton Uranium Project.

Macquarie analysts have recently upped their outlook for the uranium spot price.

Such sentiment could be helping to buoy sentiment in the company’s stock today.

The post Why is the Core Lithium (ASX:CXO) share price hitting all-time highs today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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