The Core Lithium Ltd (ASX: CXO) share price has been on the rise again today.
Core Lithium shares rose 4.72% on Tuesday to close trade at $1.66. However, earlier in the day, the Core Lithium share price jumped 6.1%. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) finished 0.5% higher today.
Let's take a look at why the Core Lithium share price could be rising.
Lithium price outlook strong
Core Lithium shares are lifting amid more positive sentiment for lithium prices in 2022.
Bell Potter analysts have increased their lithium price forecasts up to 2024, although the broker expects prices to peak this year.
Analysts are predicting a spodumene concentrate price per tonne of US$5,353 in 2022. In 2023, Bell Potter predicts the price will be US$4,735, before dropping to US$1,775 in 2024.
Core Lithium is exploring lithium at the Finniss Lithium project near the Darwin Port in the Northern Territory. The company is targeting spodumene production from this project by the end of 2022.
Commenting on the lithium outlook, Bell Potter said:
Our outlook for Australian supply compiles recent company announcements. In the current inflationary and logistically constrained economic environment, we see this collective outlook as aspirational. Over the next five years, growth in Australian supply will at best meet only one third of total growth in lithium demand.
New supply will also come from new and expanding brine projects. However, prolonged ramp-up, technical challenges and sovereign risks are likely to constrain these riskier developments
Core Lithium is not the only ASX lithium explorer to rise today. The Allkem Ltd (ASX: AKE) share price finished 2.96% higher today, while Pilbara Minerals Ltd (ASX: PLS) climbed 3.72%. Meanwhile, the Lake Resources NL (ASX: LKE) share price rose 0.79%.
Core Lithium share price snapshot
The Core Lithium share price has exploded 376% in the past year, while it has soared 182% year to date.
In the past month alone, Core Lithium shares have climbed more than 13%.
For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has climbed 0.84% in the past year.
