Why is the Core Lithium share price rocketing 5% today?

The Core Lithium Ltd (ASX: CXO) share price is taking off on Thursday despite the company’s silence.

Indeed, the stock recovered all it lost in June’s lithium sell-off earlier this week before hitting a four-month high earlier today.

The Core Lithium share price is trading at $1.515 at the time of writing, 4.84% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is gaining 0.8% right now while the S&P/ASX 200 Materials Index (ASX: XMJ is up 1.5%.

Let’s take a look at what’s been going on with the ASX lithium share lately.

What’s driving the Core Lithium share price higher?

Core Lithium’s stock is leaping upwards for a seventh consecutive session despite no news having been released by the company.

Though, it’s not alone in its gains. The materials sector is being led by ASX lithium shares.

The Lake Resources N.L. (ASX: LKE) share price is out in front with a 12.5% gain. Meanwhile, Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) share prices are up 4.7% and 4% respectively.

Core Lithium’s shares are also rising amid reports out of China. The nation just recorded its best ever month for electric vehicle sales – a segment that’s expected to grow 84% in 2022, my Fool colleague Bernd reports.   

Of course, greater demand for electric vehicles means more demand for batteries, which in turn should lead to greater demand for lithium. As per the law of supply and demand, that would likely bolster lithium producers’ bottom lines.

The Core Lithium share price is currently 140% higher than it was at the start of 2022. Though, it’s trading 9.5% lower than its record high of $1.675, reached in April.

The post Why is the Core Lithium share price rocketing 5% today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price up so much more than other ASX lithium shares today?
• What this new Chinese record could mean for Core Lithium shares
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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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