The Core Lithium Ltd (ASX: CXO) share price is having a tough day on the market today.
Core Lithium shares are down 3.75% at the time of writing and are currently fetching $1.285. For perspective, the S&P/ASX 200 Resources Index (ASX: XJR) is down 1.36% today.
So why is the Core Lithium share price struggling today?
Why are Core Lithium shares falling.
Core Lithium may be down today, but it is not the only ASX lithium share in the red. The Liontown Resources Ltd (ASX: LTR) share price is down 6.75% at the time of writing, while Lake Resources N.L. (ASX: LKE) shares are 4.57% lower. IGO Ltd (ASX: IGO) shares are also down 3.89%, while Sayona Mining Ltd (ASX: SYA) shares are falling 2.38%.
News out of China could be impacting ASX lithium shares on Monday. China is a major electric vehicle (EV) producer and there are concerns lithium prices could pull back amid a fall in demand, as my Foolish colleague James reported.
Further, the South China Morning Post reported yesterday that Chinese EV battery producers will exceed domestic electric car makers' demands threefold by 2025. This may be further adding to concerns about falling lithium prices.
Lithium carbonate prices in China fell 0.53% to 562,500 yuan on Friday.
Meanwhile, unprecedented protests over COVID-19 restrictions have erupted in China over recent days amid the nation's COVID-zero policy.
Also, lithium shares in the United States struggled on Friday. Sociedad Quimica y Minera de Chile (NYSE: SQM) lost 6.8%, while Livent Corp (NYSE: LTHM) shares fell a massive 8.81%.
The Core Lithium share price also fell 5.6% on the ASX on Friday amid fears COVID-19 restrictions in China could impact demand for lithium.
Share price snapshot
The Core Lithium share price has soared 138% in the past year, while it has climbed 118% in the year to date.
For perspective, the Resources Index has gained nearly 20% in the past year.
Core Lithium has a market capitalisation of more than $2.4 billion based on the current share price.
