The Vulcan Energy Resources Ltd (ASX: VUL) share price is down 21% from its 11 August high of $9.68
Over the same period, the S&P/ASX 200 Materials Index (ASX: XMJ) also swooped lower for a 4.41% loss.
Shares of the battery metals exploration company currently trade for $7.64 each, up 2.4% for the day.
Let’s take a closer look at the sector’s major developments to learn more about what’s going on with the Vulcan Energy share price.
What happened?
Recent developments present a mix of challenges and opportunities for the zero-carbon lithium developer.
One day before the company’s share price peaked, Graphene Manufacturing Group Ltd (CVE: GMG) announced its graphene aluminium-ion batteries are a more effective substitute for lithium-based alternatives.
The company gave two reasons: the batteries can reportedly charge 70 times faster and have longer lifespans than lithium-ion batteries.
Then on 17 August, EV and semiconductor factories shut down in China for six days amid a record heatwave in the country, as reported by Stockhead.
However, some positive news emerged during this time, too, including that zero-carbon lithium could trade at a ‘green premium’ in the future.
The United States also introduced a US$437 billion spending bill, with the vast majority set aside for tackling climate change and a US$7,500 tax credit for consumers who purchase electric vehicles.
Overall, the outlook looks mostly positive for the company and ASX lithium shares in the longer term, but some short-term headwinds have battered the stock in the meantime.
Vulcan Energy share price snapshot
The Vulcan Energy share price is down 27% year to date. Meanwhile, the S&P/ASX 200 Materials Index has lost 8.3% loss over the same period.
The company’s current market capitalisation is roughly $1.09 billion.
The post The Vulcan share price has cratered 21% since its August high. What’s going on? appeared first on The Motley Fool Australia.
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More reading
- Could this give some ASX lithium shares the edge?
- âGreen premiumâ: What could it mean for the Vulcan Energy share price?
- Why is the Vulcan Energy share price up 8%?
- Why did the Vulcan Energy share price fire 5% higher today?
Motley Fool contributor Matthew Farley 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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