It is an underwhelming start to the week for the Core Lithium Ltd (ASX: CXO) share price. However, the lithium explorer is not the only ASX lithium share facing a deterioration in sentiment on Monday.
In afternoon trading, shares in Core Lithium are in the red by 2.86%, taking the share price down to $1.36. Unfortunately, this only adds to a recent downward trend for the company's shares. Factoring in today's move, Core Lithium shares are now 15.7% worse off than a week ago.
Given the sizeable nature of the move — and the short timeframe in which it has transpired — it seems worthwhile investigating what could be feeding into the fear.
Image source: Getty Images
Why are lithium bulls getting cold feet now?
Typically, the underlying commodity price is to blame when the majority of mining companies of a specific resource move together. For some context, here are the share price movements of some other popular lithium names in the last seven days:
- Piedmont Lithium Inc (ASX: PLL) down 12.4%
- Liontown Resources Limited (ASX: LTR) down 4.7%
- Pilbara Minerals Ltd (ASX: PLS) down 2.2%
However, a quick inspection of the lithium price on Trading Economics reveals that the battery commodity has held steady over the past week. Consequently, we need to look elsewhere to find a possible detractor from the Core Lithium share price.
At a higher level, The Motley Fool recently reported on potential alternatives to lithium for a green energy future. On 11 August, we covered claims from a Brisbane-based company that it had produced a graphene aluminium-ion battery capable of charging 70 times faster than a lithium-ion one.
Additionally, news broke of carmaker Porsche conducting virtual tests on a hydrogen-powered car last week. Rather than the popularised hydrogen fuel-cell technology, Porsche's research involves a hydrogen-combustion engine.
Both of these developments might, at least partly, be responsible for some of the dampening in the Core Lithium share price recently.
Core Lithium share price in context
The past week has offered a rather cold reception for the Core Lithium share price, but let's put it into context.
In the past month, the lithium explorer is still up a sweet 31%. Zoom out to six months and that positive return balloons to 83%. I doubt there would be too many shareholders displeased with that performance. Especially when we consider that the S&P/ASX All Ordinaries Index (ASX: XAO) is flashing red over the past six months, down 1.8%.
On a positive note, Macquarie has recently boosted its lithium forecasts. Analysts have had their confidence reinvigorated as sales of electric vehicles are remaining strong despite the inflationary environment.
