Here’s why Core Lithium (ASX:CXO) shares close over 8% strong today

3 min read | May 17, 2022 06:05 PM AEST | By Ritwika

Here’s why Core Lithium (ASX:CXO) shares close over 8% strong today — Image source: © Malpetr | Megapixl.com

Highlights

Core Lithium is ready to accelerate lithium production at the Finniss Project.

Rising demand for Lithium batteries promises substantial earnings to Core Lithium.

All eyes were on Core Lithium today, with over 20 million shares being traded.

The shares of Core Lithium Ltd (ASX:CXO) closed trading 8.016% stronger at AU$1.28 per share on the ASX today (17 May). Core Lithium is one of the heavily traded stocks on the ASX today, with over 20.4 million shares traded throughout the entire trading session.

The ASX-listed lithium producer released updates from its Finniss Project on the ASX today.

The share price of Core Lithium has skyrocketed to 439.58% over the past 12 months. On the other hand, Core Lithium’s year-to-date share price also gained over 105% on the ASX today (17 May).

What pushed Core Lithium’s share price on the ASX today?

There are several factors that could stand responsible for Core Lithium’s share price gain on the ASX today. The most obvious reason for Core Lithium’s share price upward movement is the recent announcement by the company.

The announcement revealed that Core Lithium is focused on delivering its targeted production and is rather trying to accelerate its Lithium productions at the Finniss Project. Already five new dump trucks have arrived at the Project site at the end of April 2022. The company is further anticipating receiving an additional excavator to arrive at the end of May 2022. Core Lithium will be capable of accelerating the rate of mining at Grant Stage 1 upon arrival of the new equipment.

Read more: Core Lithium (ASX:CXO) shares end 8% higher today, here's why

Lithium is a highly demanding commodity worldwide due to the manufacturing of electronic vehicles. As a result, the earnings of the company are highly dependent upon the lithium production of the company.

As the world recovers from the global pandemic, the electrification of vehicles is one of the primary concerns in several countries. Core Lithium being one of the promising lithium producers in Australia, is under investors’ radar now, which justifies the company’s heavy trading volume on the ASX today.

Therefore, the ASX 200 Materials sector also performed well on the ASX today. The S&P/ASX 200 Materials sector (ASX:XMJ) closed trading 1.115% higher at 1678.2 on the ASX today (17 May).

About Core Lithium:

What did the Core Lithium management say?

Stephen Biggins, the Managing Director of Core Lithium, believes that securing the environmental approval for the BP33 Underground Mine is a significant achievement for the company, along with the award of the crushing contract to CSI.

Stephen further added that these grants would allow the company to expand the production pathway at Core Lithium’s Finniss Project.

Furthermore, Stephen also said that the recently completed earthworks and handing over a part of the site to Primero would enable Core Lithium to initiate the DMS plant.

Read more: Core Lithium (ASX:CXO) shares are trading in red today, here's why

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