The Vulcan Energy Resources Ltd (ASX: VUL) share price is down 20.53% this year to date, making it one of the worst performers in its ASX lithium peer group.
In comparison, Core Lithium Ltd (ASX: CXO) is up a massive 155.56% over the same period. Other lithium shares are up even more, including Latin Resources Ltd (ASX: LRS), up 300%, and Anson Resources Ltd (ASX: ASN), up 178% in 2022.
On a broader level, the S&P/ASX 200 Materials Index (ASX: XMJ) is down 7.20% year to date.
So why is Vulcan Energy struggling while others are surging upwards? Let's investigate.
Why is Vulcan Energy struggling?
One explanation for why Vulcan Energy is being left behind could be down to a lack of positive news and developments from the company. This is despite its zero-carbon lithium potentially trading at a 'green premium' in the future.
Other ASX lithium shares reported high-grade findings of lithium at their extraction sites, which led their share prices to soar.
For example, on Wednesday, Latin Resources announced it had discovered lithium at its Colina prospect in Brazil. Previous drilling attempts also found a lithium corridor of a total distance of 4km.
And as for Anson Resources, the company reported "outstanding economics" from its Paradox Lithium project on Thursday. When the Fool reported the news, shares were up 35%.
But although Vulcan Energy's share price has been less buoyant than others from a lack of announcements from the company, this doesn't mean its prospects are bleak.
In fact, Alster Research gave Vulcan shares a price target of $20 apiece in early August, thus giving it a 131.74% potential upside at the time of writing.
The leading broker in Europe expects Vulcan Energy to reach this target within the next 12 months, so it may catch up to its peers sooner than we expect.
Vulcan Energy share price snapshot
The Vulcan Energy share price was up 3.97%, trading at $8.65 at the market close on Friday.
The company's market capitalisation is $1.24 billion based on this figure.
