Core Lithium Ltd (ASX: CXO) shares are racing higher in Thursday lunchtime trade.
At the time of writing, the ASX lithium stock is up around 9% to 26 cents a piece.
Today's increase means the shares are now up 114% higher than 12 months ago.
But, thanks to a share price crash in March this year, the shares are still trying to claw back losses shed in 2026. For the year to date, the shares are down around 9%, at the time of writing.
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Why is the ASX lithium stock climbing higher again today?
There isn't any price-sensitive news out of the company this week to explain the latest share price rally.
It looks like the shares are rising on the back of an upswing in investor interest in the ASX lithium explorer and developer. Core Lithium shares were also sold off heavily over recent weeks, so a bounce-back is likely, with investors buying back in for cheap.
The lithium sector has been in the spotlight over the past week after news that a wave of mine restarts in China will tip the market back into oversupply next year. Trading Economics data shows that Lithium carbonate prices have fallen below CNY145,000 this month, their lowest in five months.
But it looks like Core Lithium shares are unfazed by the latest update. In fact, the share price is quickly travelling in the other direction.
Fact is, prices are still hugely higher than the CNY90,000 levels seen in January this year, and demand is still booming. EV sales continue to increase globally, and grid-scale battery storage is growing rapidly. Both markets are heavily reliant on lithium supply.
The successful restart of Core Lithium's flagship Finniss operation in the Northern Territory is also likely to be attracting attention.
Late last month, the company announced that its underground decline development has now started at the BP33 deposit. This is a major step for Finniss, which sits about 88 kilometres by sealed road from Darwin Port.
The company said BP33 is expected to provide a long-life, low-cost underground production base, with a mine life of more than 10 years. It also remains open at depth, which means there could be room to extend the operation over time.
The underground development will run alongside the current open-pit mining at Grants.
Are Core Lithium shares a buy, sell, or hold?
According to the experts, there could be a huge upside ahead over the next 12 months.
TradingView data shows that three out of four analysts have a buy or strong buy rating on the shares.
The average target price of 39.5 cents implies a 53% upside at the time of writing. But some think the lithium shares have the potential to rocket 169% higher to 70 cents each over the next 12 months.
