Why is the Core Lithium share price surging 6% on Thursday?

Three happy miners standing with arms crossed at a quarry as the Core Lithium share price rises todayThree happy miners standing with arms crossed at a quarry as the Core Lithium share price rises today

The Core Lithium Ltd (ASX: CXO) share price is rebounding today following two consecutive days of being heavily sold off.

Over Tuesday and Wednesday, the lithium producer’s shares fell 7.3% while the S&P/ASX All Ordinaries Index (ASX: XAO) dipped 5.1%.

At the time of writing, Core Lithium shares are powering ahead by 6.09% to $1.22.

Core Lithium shares recover lost ground

ASX investors are bidding up Core Lithium shares despite no announcements from the company today.

With lithium prices stable, it’s likely that bargain hunters are swooping in after the recent share price fall.

Confidence in the lithium sector took a dive this month on the back of a Goldman Sachs’ analysis.

The global investment powerhouse released a bearish report forecasting the price of lithium will tumble to US$16,000 in 2023.

This sent shockwaves throughout the battery metals market and made ASX investors panic.

A number of lithium companies pushed back on the report saying they believe lithium demand is here to stay.

It’s no secret that Core Lithium will need to play a key role in meeting the future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.

The company has been developing its wholly-owned Finniss Lithium Project.

Last month, Core Lithium provided an update advising it will have its first production of lithium concentrate in Q4 2022.

Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside of Western Australia.

The Australian Government has highlighted how critical it is to have this capability within the country.

Core Lithium share price summary

Regardless of the turbulent month, the Core Lithium share price has soared by 388% in the past 12 months.

Year-to-date, its shares are up 94%.

Core Lithium presides a market capitalisation of $1.99 billion and has approximately 1.73 billion shares outstanding.

The post Why is the Core Lithium share price surging 6% on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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