Core Lithium share price could be a long-term winner as critical metals steal the spotlight at G7 summit

United States president Joe Biden highlighted the importance of the Australia-US alliance in sourcing critical clean energy metals at the G7 summit.

| More on:
Three satisfied miners with their arms crossed looking at the camera proudly

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Core Lithium share price has rebounded sharply since its late March lows
  • US President Joe Biden has labelled cooperation in clean energy development ‘the third pillar’ in the US-Australia alliance
  • Biden is aiming to enable new US investments in Australian lithium projects, amongst other critical metals

The Core Lithium Ltd (ASX: CXO) share price has given up its early morning gains and dropped into the red.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed Friday trading for $1.13. They are currently trading for $1.087 apiece, down 3.38%.

Created with Highcharts 11.4.3Core Lithium PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

While the Core Lithium share price isn't reacting positively today, the miner may be a long-term winner from the most recent discussions held by the seven wealthy nations that make up the G7.

What happened at the G7 summit?

Despite a looming debt default at home, United States President Joe Biden managed to make an appearance at the G7 summit, held in Hiroshima, Japan on Saturday. This was immediately followed by the Quadrilateral Security Dialogue (Quad) summit.

Prime Minister Anthony Albanese was also in attendance.

Among the pressing matters the world leaders discussed was how to secure diverse supply lines of critical clean energy metals outside of China. This is where the Core Lithium share price could enjoy a boost.

Despite the past few years of increased production outside of the Middle Kingdom, China remains the dominant supplier of most of the refined metals required to transition the world away from fossil fuels.

Australia holds the title of the world's top lithium producer and has the globe's fifth-largest lithium reserves.

This fact isn't lost on the US government, which recently signed the Climate, Critical Minerals and Clean Energy Transformation Compact with Australia, and passed the US$369 billion (AU$555 billion) Inflation Reduction Act (IRA), containing big spending on sustainable energy transformations.

That all bodes well for ASX 200 lithium stocks more broadly, and the Core Lithium share price more specifically.

And, on Saturday, Biden doubled down on the commitment (quoted by The Australian Financial Review):

We are going to establish climate and energy as the third pillar of the Australia-US alliance. This will enable the expansion and diversification of clean energy supply chains, especially as it relates to critical materials.

Biden is also seeking to have Australia added as a "domestic source" under the US Defense Production Act. This would enable new US investments in Australian lithium projects, among others.

Core Lithium share price snapshot

The Core Lithium share price is down 18% over the past 12 months.

But on the back of the recent rebound in lithium prices, the shares have gained 44% since 23 March.

Motley Fool contributor Bernd Struben 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.

More on Materials Shares

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why this $2.3 billion ASX 200 mining stock just crashed 9%

Investors have been quick to hit the sell button today. But why?

Read more »

two young mining apprentices wearing their high visibility gear and hard hats stand together smiling.
Materials Shares

Are BHP shares dirt cheap?

A leading broker has given its verdict on this mining giant following its update.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Materials Shares

Big returns! Broker tips Liontown shares to double in value

This lithium miner could be heading higher from here according to one broker.

Read more »

Two young African mine workers wearing protective wear are discussing coal quality while on site at a coal mine.
Materials Shares

Why this expert thinks lithium could be a big deal for Rio Tinto shares

Let’s dig into what lithium could mean for Rio Tinto.

Read more »

Materials Shares

Novonix share price crashes 10% on shock news

Why are investors hitting the sell button on Tuesday? Let's find out what is happening.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Why are Liontown shares roaring 14% higher today?

Investors are fighting to get hold of this lithium miner's shares. But why?

Read more »

Business people standing at a mine site smiling.
Materials Shares

South32 shares higher on solid half year update

The market has responded positively to the miner's update. Let's dig deeper into it.

Read more »

a woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.
Materials Shares

Guess which ASX lithium stock is jumping 29% on $1.6b funding boost

Big news is getting investors excited on Monday. Let's dig deeper into what is happening.

Read more »