Why is the Core Lithium share price surging 7%?

A man scoots in superman pose across a bride, excited about a future with electric vehicles.A man scoots in superman pose across a bride, excited about a future with electric vehicles.

The Core Lithium Ltd (ASX: CXO) share price is surging today.

Shares in the ASX lithium explorer and producer closed yesterday at 93 cents and are at the time of writing trading for $1, up 7.2% in afternoon trade.

So, what’s piquing ASX investor interest?

Tesla indicates battery metals in short supply

It’s not just the Core Lithium share price charging higher today.

Most ASX lithium shares are outpacing the 1.8% intraday gains posted by the All Ordinaries Index (ASX: XAO).

This comes after Tesla Inc (NASDAQ: TSLA) chair Robyn Denholm, who’s also the chair of the Tech Council of Australia, said Tesla’s demand for battery metals could soon outpace supplies.

According to Denholm:

I can’t think of a technology that is more important than lithium-ion batteries right now. The world cannot build battery cells fast enough. It may be the rate-limiting actor for tackling climate change. To meet the challenge of climate change, this entire industry needs to scale at sprinting pace.

As my Fool colleague Brooke Cooper reported, “Denholm has reportedly called on state and federal governments to grant more lithium projects the tick of approval and noted opportunities for partnerships between public and private capital”.

Core Lithium share price snapshot

The Core Lithium share price has been a stellar performer, with shares up 59% in 2022 and up a whopping 335% over the past 12 months.

For some context, the All Ordinaries is down 12% year to date.

The post Why is the Core Lithium share price surging 7%? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Tesla. 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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