Why has the Core Lithium share price surged 15% in a week?

The Core Lithium Ltd (ASX: CXO) share price has taken off over the last seven days, leaping 15%.

Interestingly, there’s been no news from the lithium developer during that time. Though, future supply challenges have been flagged by an industry insider.

At the time of writing, the Core Lithium share price is $1.06. That’s up from last Monday’s open of 92 cents.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 3% over the same period.

So, what has been going on with the ASX 200 lithium developer’s stock? Let’s take a look.

What’s driving the Core Lithium share price higher?

The Core Lithium share price has been on a roll lately despite the company’s silence.

In fact, it’s been close to a fortnight since the market last heard price-sensitive news from the lithium favourite. Then, the company posted a significant increase to its flagship Finniss Project’s mineral resource estimate and ore reserve.

However, last week Tesla and Tech Council of Australia chair Robyn Denholm reportedly told a summit that a shortfall in battery materials could be the “rate-limiting actor” in the fight against climate change.

Denholm is said to have told the Clean Energy Summit the lithium industry must “scale at sprinting pace” to bolster supply of the material.

Of course, greater demand for lithium generally means higher prices, which tend to boost producers’ bottom lines.

Additionally, the Core Lithium share price still has plenty of room for recovery after a major lithium sell-off in June.

The stock tumbled 31% last month alongside many of its ASX lithium peers. It has since recovered around 8%.

Though, short sellers’ interest in the stock hasn’t abated yet. Between late May and mid-June, Core Lithium’s short position increased by around 5%. It was sitting at 7.6% as of the most recent count.

The post Why has the Core Lithium share price surged 15% in a week? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today
• Why is the Core Lithium share price surging 7%?
• ASX 200 lithium shares get busy amid dire supply call
• Here are the top 10 ASX shares today

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 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.

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