Why is Core Lithium charging 7% higher today?

What's going on with Core Lithium today?

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Key points
  • Core Lithium shares are soaring 7% today 
  • The company has recently shipped maiden lithium to China 
  • Core Lithium shares have soared 16% in a week

The Core Lithium Ltd (ASX: CXO) share price is racing ahead today.

Core Lithium shares are surging 7.21% and are currently fetching $1.19. In comparison, the S&P/ASX 200 Index (ASX: XJO) is climbing 0.55% today.

So what's going on with the Core Lithium share price?

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Image source: Getty Images

Core Lithium shares rise?

Core Lithium shares may be rising, but multiple other ASX lithium shares are also in the green today. Pilbara Minerals Ltd (ASX: PLS) shares are soaring 6%, while Lake Resources N.L. (ASX: LKE) shares are surging 6.45%. The S&P/ASX 200 Materials Index (ASX: XMJ) is rising 2.7% today.

A lithium sector rebound and recent positive news from the company could be driving up Core Lithium shares today.

The Core Lithium share price has gained 16% since market close on 30 December alone.

In news yesterday, Core Lithium shipped maiden lithium from the company's Finniss project in Darwin to China. The ship Rossana was loaded with 15,000 dry metric tonnes (dmt) of 1.4% lithium oxide and sailed from Darwin Port to a customer in China.

Core Lithium has achieved a price of US$951 per dmt on this cargo, meaning the shipment is worth nearly US$14.3 million.

Commenting on this news, CEO Gareth Manderson said:

Our focus now is to safely complete construction of the dense media separation (DMS) plant at Finniss to enable us to produce high-quality spodumene concentrate.

Meanwhile, positive news on the electric vehicle market has emerged overnight. Lithium is an essential component of EV's.

Analysts at EY global have released new research and analysis forecasting that EV sales in the US, China and Europe will outpace all other engine sales by 2030. This is three years sooner than previously expected. EY Global Advanced Manufacturing and Mobility Leader Randall Miller said "the EV revolution continues to gain momentum".

Core lithium share price snapshot

The Core Lithium share price has exploded 98% in the last year.

Core Lithium has a market capitalisation of about $2.2 billion based on the current share price.

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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