Key Points
- Core Lithium share price up 300% in a year after hitting record high yesterday
- Construction underway at company's flagship Finniss Lithium Project
- Targeting production of spodumene concentrate in late 2022
The Core Lithium Ltd (ASX: CXO) share price had a stellar 2021 following a surge in interest across the lithium space.
Over the course of the 12 months, the lithium producer's shares rose by more than 300% for investors. In comparison, the All Ordinaries (ASX: XAO) is travelled just 10% higher over the same time frame.
Let's take a look at what powered the company's share price in recent memory.
What's driving Core Lithium shares to record highs?
Investors have been snapping up Core Lithium shares after the company has been progressing its wholly-owned Finniss Lithium Project.
For most of the year, the company's share price gradually ascended on the back of market confidence in lithium demand.
Popular belief is that Core Lithium will need to play a key role in meeting the future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.
Last month, the company advised that drilling works intersected high-grade spodumene mineralisation across multiple targets. This led to the Core Lithium share price accelerating from 52.5 cents to 88 cents as of yesterday's market close.
Site construction and establishment activities are currently underway, with first production of lithium concentrate scheduled in Q4 2022.
Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside of Western Australia.
The Australian government is focused on increasing the capabilities of onshore refinement of critical minerals. A recent $6 million grant awarded to Core Lithium will be used in building a pilot processing facility at Darwin Harbour's Middle Arm Industrial Precinct.
Core Lithium share price snapshot
It has been an interesting year for Core Lithium shares, moving in circles for most of 2021 until recently shooting higher. The company's share price reached an all-time high of 96.5 cents before treading slightly lower.
Based on today's price, Core Lithium has a market capitalisation of roughly $1.47 billion, with over 1.67 billion shares outstanding.
