The Core Lithium Ltd (ASX: CXO) share price is again on the move today following strong interest in the company.
In the past month, the lithium producer’s shares have risen by around 30%. In comparison, the All Ordinaries (ASX: XAO) is just 4% higher over the same time frame.
At the time of writing, Core Lithium shares are swapping hands at $1.47, up 6.91%.
Let’s take a look at what’s been powering the company’s share price recently.
What’s driving Core Lithium shares higher?
Investors have been snapping up the company’s shares as it progresses its wholly owned Finniss Lithium Project in the Northern Territory.
Since the beginning of the year, the Core Lithium share price has ascended on the back of market confidence in lithium demand.
Popular belief is that Core Lithium will play a key role in meeting the future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.
Last month, the company advised that drilling works intersected high-grade spodumene mineralisation across multiple targets at the Finniss project. This led to the Core Lithium share price accelerating from $1.26 to as high as $1.63 in the following days.
The first production of lithium concentrate at Finniss is scheduled in Q4 2022. Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside Western Australia.
The Australian Federal Government is focused on increasing the capabilities of onshore refinement of critical minerals.
Last year, Core Lithium’s Finniss was awarded Major Project Status (MPS) by the Federal Government.
Achieving MPS underlines the importance of the strategic significance of this project to Australia. It provides extra support, including a single-entry point for regulatory approvals, project support and coordination with government authorities.
Share price snapshot
It has been a stellar year for Core Lithium shares, surging to a record high of $1.675 before taking a slight breather.
When looking at the past 12 months, its shares are up an outstanding 435%.
Based on today’s price, Core Lithium has a market capitalisation of roughly $2.5 billion, with over 1.7 billion shares outstanding.
The post Why is the Core Lithium share price powering up 7% today? appeared first on The Motley Fool Australia.
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More reading
- 3 ASX lithium shares that rocketed between 10% and 24% today
- Here are the top 10 ASX shares today
- Up 427% in a year, Core Lithium share price surges 11% again today
- Core Lithium share price clips gains today but remains up 110% for the year
- Here’s why the Core Lithium share price is in the green on Monday
Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.
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