The Core Lithium (ASX:CXO) share price just keeps climbing. What's the deal?

What is so hot about Core Lithium? Let's take a closer look.

Key points
  • The Core Lithium share price surged nearly 10% on Monday
  • The lithium miner's shares have now skyrocketed more than 400% in a year 
  • Core Lithium's deal with Tesla appears to have had a positive impact on the company's share price 

The Core Lithium Ltd (ASX: CXO) share price is on a roll lately, surging 57% over the past month alone.

The company's shares surged nearly 10% on Monday to close at $1.235.

So what is the deal with Core Lithium shares? Let's have a look…

person climbing mountain

Image source: Getty Images

What's happening at Core Lithium?

Core Lithium shares have surged 109% year to date and 201% in the past six months.

One major announcement that had a huge impact on the company's shares early this month was the signing of a deal with electric vehicle world leader Tesla Inc (NASDAQ: TSLA).

Tesla and Core Lithium have entered a binding term sheet for the supply of 110,000 tonnes of spodumene concentrate during the next four years, as my Foolish colleague Mitch reported.

Core Lithium will source this mineral from the Finniss Lithium Project, near Darwin Port in northern Australia. The Core Lithium share price soared 15% on the day of the announcement.

Also in early March, Core Lithium advised the company had received results from nine diamond drill holes at the Carlton deposit of the Finniss Lithium Project.

Eight of these drill holes intersected with spodumene bearing pegmatite mineralisation. The company plans to provide a further update on this project in the second quarter of 2022.

Additionally, lithium shares including Core Lithium soared on Monday amid "bullish sentiment in the sector", my colleague James reported yesterday.

The lithium carbonate price has surged nearly 266% in a month, according to data from trading economics.

Core Lithium is one of the top-performing lithium stocks on the ASX in 2022. The Core Lithium share price also hit record highs in 2021, exploding 300%.

Core Lithium share price snapshot

The Core Lithium share price has rocketed by 18% in the past week and a mammoth 449% in the past year.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has climbed roughly 8% in the last year.

The company has a market capitalisation of about $2.1 billion based on the current share price.

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 Bruce Jackson.

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