Why is the Core Lithium share price leaping 10% on Tuesday?

The Core Lithium Ltd (ASX: CXO) share price is taking off on Tuesday, marking its fifth consecutive day in the green.

The stock is trading at $1.50 at the time of writing. That’s 9.93% higher than it was at yesterday’s close and 33% higher than it was this time last week.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.08% right now having gained 0.4% over the last week.

So, what’s going on with the Core Lithium share price today? Let’s take a look.

What’s driving the Core Lithium share price higher?

The Core Lithium share price is surging upwards alongside many of its ASX lithium peers.

Indeed, the S&P/ASX 200 Materials Index (ASX: XMJ) is currently up 0.6%, led by the Lake Resources N.L. (ASX: LKE) share price. It’s leapt 23% to trade at $1.33 right now.

Other ASX 200 lithium shares are also up, with Liontown Resources Limited (ASX: LTR) and Allkem Ltd (ASX: AKE) rising 8.2% and 1.8% respectively.

Interestingly, there’s been no major news from any of the lithium favourites today. Though, there has been a bit going on with the sector this week.

Firstly, ASX lithium producers were found to be best in class in terms of environmental, social, and governance (ESG) criteria, The Canberra Times reported yesterday.  

Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Limited (ASX: MIN) reportedly topped the list compiled by Benchmark Mineral Intelligence.

Meanwhile, bullish guidance from major US lithium solutions producer Albemarle has hit headlines this week.

The company’s CEO Kent Masters expects the lithium market will continue to be tight for most of this decade, the Financial Times reports.

Such a happening would likely support lithium prices for years to come, bringing good news for the material’s producers.

The Core Lithium share price has gained 138% since the start of 2022. It’s also 266% higher than it was this time last year.

The post Why is the Core Lithium share price leaping 10% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Core Lithium, European Lithium, Incannex, and Qantas shares are pushing higher

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 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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