Core Lithium Ltd (ASX: CXO) shares finished the week in the green, closing 2% higher at $1.02 on Friday.
Gains in the S&P/ASX 200 Index (ASX: XJO) lithium share yesterday came as a welcome lift to shareholders after the stock closed lower on the previous four trading days
With lithium prices coming off of their record highs in November, Core Lithium shares have come under some pressure, down 21% since this time last year.
You're unlikely to hear longer-term shareholders complaining, however. The popular lithium stock is still up 334% over the past two years.
So, what can ASX 200 investors expect from Core Lithium in 2024?
Tailwinds ahead for ASX 200 lithium stocks?
There are a few tailwinds brewing that could offer a boost to most ASX 200 lithium stocks, including Core Lithium shares.
One of those is a continuing rebound in the lithium price.
The lithium carbonate price hit an all-time high of some US$85,000 per tonne in November. It then plunged to US$22,000 per tonne by late April.
But amid resurgent EV sales in China and an erosion of excess supplies for the battery critical metal, the lithium price has since bounced back to US$28,000 per tonne.
Heading into 2024, a growing number of analysts are forecasting lithium prices to keep rising from here, including those at Citi, Morgan Stanley, UBS and Macquarie.
Macquarie counts amongst the most bullish, forecasting the lithium price could again reach US$57,500 over the coming year.
Core Lithium shares could also get a boost in 2024 courtesy of the United States.
Last weekend, Prime Minister Anthony Albanese and US President Joe Biden inked the Climate, Critical Minerals and Clean Energy Transformation Compact.
"We are going to establish climate and energy as the third pillar of the Australia-US alliance," Biden said, speaking at the G7 summit in Hiroshima, Japan.
"This will enable the expansion and diversification of clean energy supply chains, especially as it relates to critical materials."
Biden said he'd also urge Congress to add Australia as a "domestic source" under the US Defense Production Act.
Core Lithium shares set to ramp up revenue in 2024
Shaw and Partners portfolio manager James Gerrish recently highlighted one of the biggest factors that could see Core Lithium shares outperforming again in 2024.
Namely that the miner's Finniss Lithium Project, located close to Port Darwin in the Northern Territory, will be ramping up towards full production next year.
Finniss achieved its maiden spodumene concentrate production in February. On completion, it will produce an average of 160,000 tonnes of battery-grade lithium concentrate annually.
In regard to Core Lithium shares, Gerrish said, "I think it is [a buy] with FY24 being the year where earnings really start to ramp up… We like it and believe it will trade higher from here."
