Insights

Why is the Core Lithium share price down 14%?

Core Lithium’s shares have taken a hit on Wednesday…
The post Why is the Core Lithium share price down 14%? appeared first on The Motley Fool Australia. –

The Core Lithium Ltd (ASX: CXO) share price has been one of the worst performers on the ASX 200 on Wednesday.

In afternoon trade, the lithium developer’s shares are down 14% to 86.5 cents.

Why is the Core Lithium share price being hammered?

The selldown of the Core LIthium share price has been driven by broad weakness in the lithium industry today, which is being felt hardest among developers rather than producers.

For example, lithium developer, Lake Resources N.L. (ASX: LKE), which also joined the ASX 200 this week with Core Lithium, is down materially today along with Argosy Minerals Limited (ASX: AGY), Liontown Resources Limited (ASX: LTR), and Sayona Mining Ltd (ASX: SYA).

What’s behind the weakness?

Investors appear to have been selling lithium shares on Wednesday amid news that Germany is planning to defy the European Union by backtracking on future plans to ban internal combustion engine (ICE) cars.

The Financial Times reports that Germany’s finance minister, Christian Lindner, has rejected plans for the ban on the sale of new petrol and diesel cars by 2035. This could have a major impact on the number of electric vehicles on European roads in 2035, especially if other countries follow its lead.

Less electric vehicles mean less demand for the lithium that goes into their batteries. And given that there are already concerns floating around about increasing supply of the battery making material, this may not bode well for long term lithium prices.

Though, a lot can certainly change between now and then.

The post Why is the Core Lithium share price down 14%? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Here are the 3 most heavily traded ASX 200 shares on Wednesday
Is this why ASX lithium shares are being crushed today?
Here are the 3 most heavily traded ASX 200 shares on Tuesday
Why is the Core Lithium share price slipping today?
Here are the 3 most heavily traded ASX 200 shares on Monday

Motley Fool contributor James Mickleboro 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info