Why is the Core Lithium share price soaring 6% today?

The Core Lithium Ltd (ASX: CXO) share price is in the green today.

Core Lithium shares are soaring 6.15% to $1.035. For perspective, the S&P/ASX 200 (ASX: XJO) is climbing 0.46% today.

Let’s take a look at what could be impacting the Core Lithium share price.

What’s going on?

Core Lithium is not the only ASX lithium share in the green today. Sayona Mining Ltd (ASX: SYA) shares are soaring nearly 10%, while Pilbara Minerals Ltd (ASX: PLS) shares are jumping 2.85%.

Multiple US lithium giants also jumped higher overnight. The Sociedad Quimica y Minera de Chile (NYSE: SQM) shares leapt 2.9%, while Livent Corp (NYSE: LTHM) shares climbed 1.43%.

This follows news from the US Treasury Department that electric vehicles leased by consumers will qualify for a $7,500 commercial clean vehicle tax credit. This will also apply to EV’s made outside of North America. Lithium is an essential component of EV batteries.

Meanwhile, multiple big brands including Toyota, Fiat, Subaru and Ford are planning to launch EV’s in Australia for the first time in 2023, the Sydney Morning Herald reported.

Core Lithium is aiming to produce first spodumene concentrate from its Finniss Lithium Project in the first half of 2023.

A recent Industry Department report is predicting spodumene prices to soar from US$2,700 a tonne in 2022 to US$4,010 a tonne in 2023. The lithium price is then predicted to fall to US$3,130 in 2024. The report stated:

The strong growth in spodumene prices that saw Australia’s export revenue reach a record $4.9 billion in 2021–22 — up from $1.1 billion in 2020–21 — is expected to drive a further tripling in annual export earnings over the outlook period

Core Lithium share price snapshot

The Core Lithium share price has exploded 80% in the last year.

In comparison, the ASX 200 has lost 6% in the last year.

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

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More reading

• Why Appen, Core Lithium, Paradigm, and Sayona Mining shares are racing higher
• Why are ASX 200 lithium shares charging higher today?
• Could the superprofits of ASX lithium shares be in danger next year?
• Could investing in the ASX 200 make me a millionare within a decade?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Monica O’Shea 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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