Core Lithium share price is surging 7% on Thursday. What’s going on?

Could this be what’s pushing the Core Lithium share price out of its recent slump?

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Key points

  • The Core Lithium share price launched to an intraday high of $1.32 on Thursday, representing a 10% gain
  • Interestingly, there's been no news from the company since Tuesday
  • However, its stock has closed around 5% lower every day this week and ASX lithium miners are outperforming today

The Core Lithium Ltd (ASX: CXO) share price is back on the horse on Thursday to recover some of its losses for the week so far.

And while there’s been no news from the company to explain its surge, it’s far from alone in its gains. Many of its fellow ASX lithium shares are also taking off today.

At the time of writing, the Core Lithium share price is $1.285, 7.08% higher than its previous close.

For context, the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are both in the green too. They’ve gained 1% and 0.82% respectively.

Let’s take a look at what’s been going on with the Core Lithium share price lately.

What’s boosting the Core Lithium share price today?

The Core Lithium share price has made its triumphant return to the green today. It’s currently 102% higher than it was at the start of 2022.

That’s despite the stock’s poor performance for the week so far. It tumbled 5% on Monday, before slipping another 4.5% and 5.1% on Tuesday and Wednesday.

As a result, the lithium developer’s stock is still 9% lower than it was at the end of last week.

Those falls came despite the company releasing two pieces of good news to the market.

First, it announced it had signed a crushing services contract for its Finniss Lithium Project. Then, an underground mine at the project was granted environmental approval.

It stands to reason that today’s gains could be the market’s way of correcting after the sell-off earlier this week.

It’s also worth noting that today is proving to be a good day for many ASX lithium shares.

The share prices of Liontown Resources Limited (ASX: LTR) and Pilbara Minerals Ltd (ASX: PLS) are both up around 7%. Meanwhile, that of Sayona Mining Ltd (ASX: SYA) is up 11%.

Motley Fool contributor Brooke Cooper 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.

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