ASX lithium shares are tumbling on the market today.
Lithium explorers in the red today include:
- Core Lithium Ltd (ASX: CXO), sliding 5%
- Pilbara Minerals Ltd (ASX: PLS), falling 5%
- Sayona Mining Ltd (ASX: SYA), descending 2.5%
- Lake Resources N.L. (ASX: LKE), plummeting 5.56%
- Mineral Resources Ltd (ASX: MIN), down 2.44%
- Piedmont Lithium Inc (ASX: PLL), tumbling 6.67%
- Allkem Ltd (ASX: AKE), dropping 3.74%
Let's take a look at what is going on with ASX lithium shares.
What's happening?
Lithium shares appear to be tumbling today amid a decline in the lithium price and wider market turmoil.
The lithium carbonate price in China has descended 30% in a month to 290,000 yuan (US$42.147), Caixin Global reported today.
This reflects lower Electric Vehicle (EV) sales in China, leading to lower demand for lithium in EV batteries.
Lithium hydroxide is also down 1.29% to US$68,600 on the London Metal Exchange.
Commenting on the lithium price in a research report this morning, ANZ economist Madeline Dunk said:
Lithium prices remained under pressure despite Chile requiring all new projects to use an untried process in a bid to reduce water losses.
The requirement may constrain future production from the world's biggest holder of reserves just as demand is picking up.
Lithium shares in the United States also descended yesterday, with Sociedad Quimica y Minera de Chile (NYSE: SQM) sliding 1.04%, and Livent Corp (NYSE: LTHM) shares descending 2.87%.
The S&P/ASX 200 Materials Index (ASX: XMJ) is struggling overall amid wider market falls. The S&P/ASX 200 (ASX: XJO) is down 0.74%.
This follows the S&P 500 Index (SP: .INX) tumbling 1.65% overnight amid news that the US Federal Reserve will raise rates by 25 basis points.
Meanwhile, Core Lithium advised the market today it has found a buyer for its maiden lithium production. Spodumene concentrate produced at the company's Finniss Lithium Operation in the Northern Territory will be sold to long-term customer Sichuan Yahua.
