Why is the Lithium Energy share price sliding today?

The Lithium Energy Ltd (ASX: LEL) share price is sliding today amid broader weakness among ASX lithium shares.

Lithium Energy shares are currently trading at $1.24, a 3.5% fall. However, in earlier trade Lithium Energy shares tumbled 8.56% before pulling back. For perspective, the S&P/ASX 200 Materials Index is down 2% today.

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

What’s going on?

Lithium Energy is a battery minerals company exploring lithium and graphite. This includes the Solaroz Lithium Project in Argentina, and the Burke Graphite Project in Queensland.

The Lithium Energy share price is down today, but it is not alone among ASX lithium shares. The Core Lithium Ltd (ASX: CXO) share price is down 5.18%, while Allkem Ltd (ASX: AKE) is falling 3.7%. Meanwhile, the Pilbara Minerals Ltd (ASX: PLS) share price is sliding 2.67%.

This follows a tough night on Wall Street in the USA for higher risk shares. Multiple lithium giants had a rough day on the New York Stock Exchange.

For example, Lithium Americas Corp (NYSE: LAC) fell 4% overnight, while Sociedad Quimica y Minera de Chile (NYSE: SQM) tumbled 7.91% and Albemarle Corporation (NYSE: ALB) fell 6.49%.

Sociedad Quimica y Minera de Chile advised it will need to spend $1.5 billion to cut its brine extraction in half by 2030, as my Foolish colleague James reported this morning.

Yesterday, Lithium Energy announced it had completed a $15 million capital raise. This will fund a ramp-up of drilling at the company’s Solaroz Lithium Brine Project.

Drilling is underway at the project. Fifteen million shares were issued at $1 per share. Lithium Energy shares fell 4% in early morning trade yesterday, before recovering and finishing the day 7.98% ahead.

Share price snapshot

The Lithium Energy share price has soared 116% in the past year, while it is rising 33% year to date.

For perspective, the ASX 200 Materials Index has slid 3% in the past year.

Lithium Energy has a market capitalisation of nearly $56 million based on the current share price.

The post Why is the Lithium Energy share price sliding today? appeared first on The Motley Fool Australia.

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More reading

• Morgan Stanley just boosted its outlook for aluminium. Here’s which ASX shares have exposure
• Guess which ASX mining share just soared 62% on a ‘significant rare earth discovery’
• Why is the Pilbara Minerals share price in reverse today?
• Why is this small-cap ASX lithium share rocketing 43% in a week?
• Why is the Sayona Mining share price diving 5% 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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