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.

“The worst thing you can do is nothing”

Motley Fool Chief Investment Officer says right now is not the time to sit on your hands…
As inflation eats away at cash balances Scott Phillips reveals three stocks for investors to consider that could help fight rising prices…
… And Core Lithium Ltd isn’t one of them.

Learn More
*Returns as of July 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFF”, ‘color’, ‘#fff’);
})()

More reading

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.

from The Motley Fool Australia https://ift.tt/GVx3Cky

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s