The Core Lithium Ltd (ASX: CXO) share price is on fire today, rocketing 19% in late morning trade.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for 78 cents. Shares are currently changing hands for 93 cents apiece.
This will come as an unwelcome surprise for the growing number of short sellers. Core Lithium stock had a 10% short interest as of yesterday.
Here's what's piquing ASX 200 investor interest on Tuesday.
Why is the ASX 200 lithium stock racing higher today?
The Core Lithium share price isn't the only one shooting the lights out today.
Here's how these other ASX 200 lithium shares are performing at this same time:
- Allkem Ltd (ASX: AKE) shares are up 12%
- Pilbara Minerals Ltd (ASX: PLS) shares are up 15%
- IGO Ltd (ASX: IGO) shares are up 7%
- Mineral Resources Ltd (ASX: MIN) shares are up 8%
- Liontown Resources Ltd (ASX: LTR) shares are up 52%
With no price-sensitive news out today, the Core Lithium share price looks to be benefiting from a rising tide that's lifting all of the ASX 200 lithium shares today.
And you need to look no further than the stellar 52% increase in the Liontown share price to uncover the impetus for that rising tide.
As The Motley Fool reports, Liontown Resources "has received and rejected a takeover approach from United States-based lithium heavyweight Albemarle Corporation (NYSE: ALB)".
It's not the first time Albemarle has expressed its interest in acquiring Liontown. But the new unsolicited, conditional, and non-binding proposal to acquire all of Liontown's shares topped the previous bids, valuing the ASX 200 lithium stock at $2.50 per share.
That's more than double the Liontown share price on 3 January, when the stock closed at $1.23. But management believes the new offer still undervalues the quality of its assets, particularly its Kathleen Valley Lithium Project, which is nearing production.
Core Lithium share price snapshot
As you can see in the chart below, the ASX 200 lithium stock is going to need some more tailwinds to climb back into the green for the calendar year. With today's intraday gains factored in, the Core Lithium share price is down 9% in 2023.
