The Core Lithium Ltd (ASX: CXO) share price is heading in the right direction at last on Wednesday.
In afternoon trade, the lithium developer's shares are up 5% to $1.07.
Though, as you can see on the chart below, the Core Lithium share price is still trading 43% lower than its November peak of $1.88.
Image source: Getty Images
Why is the Core Lithium share price rebounding?
Investors have been snapping up shares today despite there being no news out of the company.
Though, it is worth noting that a number of developers are rising this afternoon. This includes Argosy Minerals Limited (ASX: AGY), Lake Resources N.L. (ASX: LKE), and Sayona Mining Ltd (ASX: SYA).
This may potentially have been driven by the release of a quarterly update out of Allkem Ltd (ASX: AKE), which revealed that it has continued to command strong prices for its lithium.
Allkem reported an average of US$46,706 per tonne for its lithium carbonate during the second quarter, which was up 16% from the first quarter. In addition, the lithium giant's spodumene concentrate came in 5% higher quarter on quarter at US$5,284 per tonne.
In addition, Allkem revealed that third party lithium carbonate sales commanded a price of US$53,013 per tonne and it expects similar pricing for the current quarter. This is the price the company is getting for uncontracted lithium.
Investors may be optimistic that Core Lithium will be commanding similarly strong prices for its lithium by the time its Finniss Lithium Project in the North Territory is up and running.
The company is aiming to commence spodumene concentrate production at Finniss in the first half of 2023.
