What this new Chinese record could mean for Core Lithium shares

While China is among the world's leading four lithium producers, Australia tops the list.

Key points
  • Core Lithium shares are up 143% year-to-date 
  • China just reported record levels of EV sales in June with 84% growth forecast for 2022 
  • Lithium is a critical element in EV batteries 

Core Lithium Ltd (ASX: CXO) shares are charging higher in morning trade, up 5.9%.

The Core Lithium share price closed yesterday at $1.45 and currently stands at $1.53.

With shares in the ASX lithium producer already up a phenomenal 143% in 2022, could there be more growth ahead?

Judging by this new record out of China, that looks quite possible.

A miner in a hardhat makes a sale on his tablet in the field.

Image source: Getty Images

Own Core Lithium shares? China just reported record EV sales

The latest figures out from the China Passenger Car Association (CPCA), as reported by Technode, showed that the sales volume of passenger EVs in China hit a record monthly high in June.

The CPCA reported a total of 571,000 EV sales in June, up an eye-popping 141% year on year. For the full calendar year, CPCA is forecasting an 84% increase in EV sales in China, to 5.5 million vehicles.

For some context, that's about a million more than all the rest of the world's EV markets combined.

Lithium is a core element in the batteries that make EVs go. And rocketing sales growth in the world's most populous nation, and second largest economy, could offer some healthy longer-term tailwinds for Core Lithium shares.

Who are the primary producers?

While China is among the world's leading four lithium producers, Australia tops the list.

In 2020, Australia produced 40,000 tonnes of lithium out of total global production of 82,000 tonnes, according to Geoscience Australia. The government organisation also reported that Australia has a massive economic demonstrated resource of 6.17 million tonnes of lithium.

Those figures also give credence to the outlook for more growth potential ahead for Core Lithium shares.

And if you were wondering, Chile and Argentina round out the list of top producers of the lightweight, highly conductive battery metal.

How have Core Lithium shares been performing longer-term?

Not only has 2022 been a good year, but Core Lithium shares have seriously outperformed longer-term as well.

Over the past five years, the ASX lithium share has rocketed 2,086%. That compares to a 26% five-year gain posted by the All Ordinaries Index (ASX: XAO).

Motley Fool contributor Bernd Struben 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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