Here’s why the Core Lithium (ASX:CXO) share price is charging higher

The Core Lithium Ltd (ASX:CXO) share price is charging higher on Tuesday following the release of a positive update…

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The Core Lithium Ltd (ASX: CXO) share price is on form on Tuesday morning.

At the time of writing, the advanced lithium developer’s shares are up 6.5% to 24 cents.

This latest gain means the Core Lithium share price is now up 41% since the start of the year.

Why is the Core Lithium share price charging higher?

Investors have been buying Core Lithium’s shares this morning after it released an announcement relating to its Finniss Lithium Project.

According to the release, the company has achieved the production of battery grade lithium hydroxide monohydrate (LH) from spodumene mineral concentrate from the Finniss Lithium Project.

Furthermore, the scoping level test work program has demonstrated that the conventional direct flowsheet can be applied to the processing of the mineral concentrate sample to produce battery grade lithium hydroxide monohydrate.

Management notes that the demonstration of the production of battery grade LH provides Core and its customers confidence in the value of the Finniss Project. In addition, it feels it emphasises the project’s importance to Australia’s northern regional economy and strengthens Australia’s position further downstream in the global lithium battery supply chain.

Management commentary

Core Lithium’s Managing Director, Stephen Biggins, commented: “Today’s announcement confirms that battery grade lithium hydroxide suitable for high-end uses in the lithium battery, renewable energy and electric vehicle industries, can be produced from Core’s excellent quality lithium concentrate produced from the Finniss Project.”

“This successful proof-of-concept test work provides Core, and our customers, the confidence in utilising Finniss lithium concentrates in the global lithium battery supply chain.”

“Together with the recent award of Major Project Status from the Federal Government, this program lays a foundation for Core to explore the potential of adding downstream processing infrastructure to our portfolio, incorporating the strong synergies with the infrastructure at the nearby Middle-Arm Industrial Precinct at Darwin Port and aligning with Australia’s national Modern Manufacturing Strategy and expansion of the Global lithium battery supply chain,” he concluded.

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Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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