The Core Lithium Ltd (ASX: CXO) share price is in the red today despite no news from the company.
The company's shares are currently swapping hands at $1.385, a 5.78% fall. In contrast, the S&P/ASX 200 Index (ASX: XJO) is rising 0.3% today.
So, what's happening with Core Lithium today?
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Lithium prices ease
The Core Lithium share price may be sliding today, but it is not the only ASX lithium share to fall. The Allkem Ltd (ASX: AKE) share price is 1.43% in the red, while Liontown Resources Limited (ASX: LTR) is descending 1.8%. Meanwhile, Pilbara Minerals Ltd (ASX: PLS) is falling 0.18%.
Lithium carbonate prices in China have eased to 482,500 yuan per tonne in recent days. Lithium prices have shown no movement in the past day, while they are down 3.02% in the past month.
This is a huge contrast to the trend in January, February, and early March. Between 4 January and 15 March, lithium carbonate prices surged 79% to 497,500 yuan per tonne. Trading Economics reported China production of lithium carbonate increased by 41% in March, easing supply concerns. In the past year, lithium prices have exploded by 436%.
Core Lithium is exploring the Finniss lithium project in the Northern Territory. Lithium is a critical component for the batteries used in electric vehicles (EV).
Core Lithium also recently entered a binding agreement with Newmont Exploration to acquire the Shoobridge project in the Northern Territory.
Core Lithium share price snapshot
The Core Lithium share price has surged 436% in the past year, while it is up 136% this year to date.
For perspective, the ASX 200 has returned more than 8% in the past year.
Core Lithium has a market capitalisation of $2.4 billion based on its current share price.
