At the start of each week, I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top of the chart after its short interest rose to 12%. Short sellers don't appear to be giving up on Flight Centre despite its return to form in FY 2023. Revenue margin headwinds may be a cause for concern.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 11.6%. Competition and cash burn concerns could be weighing on this betting technology company's shares.
• Sayona Mining Ltd (ASX: SYA) has 10.7% of its shares held short, which is flat week on week. There are fears that lithium prices have now peaked and are about to decline materially.
• Core Lithium Ltd (ASX: CXO) has short interest of 10.1%, which is up week on week. As with Sayona Mining, continued weakness in spot lithium prices appear to have spooked investors.
• Megaport Ltd (ASX: MP1) has seen its short interest fall again to 9.3%. Short sellers have been targeting this network as a service provider after it reported softening operating trends with its results.
• Zip Co Ltd (ASX: ZIP) has short interest of 9.1%, which is up strongly week on week. Short sellers appear to be doubting this buy now pay later provider's ability to achieve its profitability goals.
• Liontown Resources Ltd (ASX: LTR) has short interest of 8.1%, which is up week on week. Concerns over material cost blow outs at the Kathleen Valley Lithium Project have been weighing on sentiment.
• City Chic Collective Ltd (ASX: CCX) has jumped into the top ten with short interest of 7.3%. This plus sized fashion retailer's abject performance and inventory management are likely to be behind this short interest.
• Lake Resources N.L. (ASX: LKE) has 6.9 % of its shares held short, which is flat week on week. Doubts over this lithium developer's technology and project funding are reasons why one short seller is targeting Lake.
• Vulcan Energy Resources Ltd (ASX: VUL) has short interest of 6.8%, which is down slightly week on week. This also appears to be down to lithium prices being tipped to fall materially in the next 18 months.

The post Here are the 10 most shorted ASX shares this week appeared first on The Motley Fool Australia.

At the start of each week, I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Betmakers Technology Group Ltd (ASX: BET) has become the most shorted share on the Australian share market despite its short interest easing slightly to 11.8%. This high level of short interest appears to have been driven by competition and cash burn concerns.
• Flight Centre Travel Group Ltd (ASX: FLT) saw its short interest fall meaningfully to 11.4%. With its shares up strongly this year, some short sellers appear to have been closing positions in a hurry.
• Sayona Mining Ltd (ASX: SYA) has 10.7% of its shares held short, which is up week on week. This seems to have been driven by fears that lithium prices have now peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is flat week on week. Continued weakness in spot lithium prices appears to have spooked investors.
• Megaport Ltd (ASX: MP1) has seen its short interest fall to 9.4%. This network as a service provider appears to have been targeted after reporting softening operating trends with its results.
• Zip Co Ltd (ASX: ZIP) has short interest of 7.7%, which is up week on week again. This buy now pay later provider's shares took a tumble last week following the release of its half-year results. Short sellers appear to believe it will struggle to achieve its profitability goals.
• Liontown Resources Ltd (ASX: LTR) has short interest of 7.7%, which is down week on week. Major cost blow outs at the Kathleen Valley Lithium Project have been weighing on sentiment.
• Pointsbet Holdings Ltd (ASX: PBH) has 7.1% of its shares held short, which is down week on week. This appears to be due to competition and cash burn concerns.
• Lake Resources N.L. (ASX: LKE) has 6.9 % of its shares held short, which is down sharply week on week. Lake Resources has come under-fire due to doubts over its technology and project funding.
• Vulcan Energy Resources Ltd (ASX: VUL) is the fifth lithium share in the top ten with short interest of 6.9%. With lithium prices tipped to fall materially over the next 18 months, there may be concerns that this Germany-based developer could miss out on the sky high prices.

The post Here are the 10 most shorted ASX shares this week appeared first on The Motley Fool Australia.

Three ASX 300 shares are bouncing around today after the companies released their quarterly results.

For perspective, the S&P/ASX 300 Index (ASX: XKO) is just 0.02% in the green at the time of writing.

Let's take a look at these three ASX 300 shares and what they reported in more detail.

Argosy Minerals Ltd (ASX: AGY)

Argosy Minerals shares have had a rollercoaster day so far, falling 1.5% near the open to lift 1.12% into positive territory before again sliding into the red. Shares in the company are currently trading 1.19% lower.

Today, the lithium explorer released its quarterly activities report. The company revealed it was in a sound financial position with about $36.6 million in cash reserves as at 31 December.

It outlined a major highlight: Completing 98% of development works at the 2,000 tonnes per annum lithium carbonate production operation at the Rincon Lithium project in Argentina. Argosy also progressed exploration works at the Tonopah Lithium Project in Nevada, USA.

The company reported lithium prices remained strong during the quarter and highlighted growing expectations that "supply will remain tight over 2023" and lithium prices will maintain at "their record highs". Argosy added:

Significant growth in EV sales remains the most material driver for future lithium demand.

Argosy shares have exploded 105% higher in the last 12 months.

Strike Energy Ltd (ASX: STX)

Strike Energy shares are sliding a hefty 4.05% today. Strike revealed it has $9.7 million cash available at the end of the December quarter, down from $21.1 million in the last quarter.

A highlight during the quarter was the company's progress in the Walyering gas field in EP447 towards production. Strike has a 55% interest in this project, with Talon Energy Limited (ASX: TPD) owing the remaining 45%. This venture has now been granted a production licence from the Western Australian Minister for Mines and Petroleum.

Strike also highlighted its takeover offer to acquire Warrego Energy Limited (ASX: WGO) was now open to Warrego shareholders.

Commenting on the results, Strike managing director and CEO Stuart Nicholls said:

The fourth quarter of calendar year 2022 was significant for Strike shareholders on a number of fronts. Firstly, and most importantly, the Company made substantial progress in its pursuit of becoming a gas producer by the end of Q1/23 at the Walyering gas field.

Strike shares have soared more than 67% in the last year.

Vulcan Energy Resources Ltd (ASX: VUL)

Vulcan is developing a zero-carbon lithium project for electric vehicle batteries. Today, Vulcan reported it was in a "strong financial position" with €134.1 million (A$204.87 million) cash on hand at the end of the December quarter.

Vulcan shares are down 0.48% at last look after sliding 2.9% in earlier trade.

During the quarter, Vulcan produced 6,350 MWh of gross baseload, renewable energy at Natür3 Lich Insheim in Germany, at an average selling price of €0.26/kWh. Vulcan said this was "helping Germany to respond to the energy and climate crises".

Also during the quarter, the company revealed it was expanding its Zero Carbon Lithium business into France.

Commenting on today's results, Vulcan managing director and CEO Dr Francis Wedin said:

The progress made during the last quarter of 2022 is testament to our rapidly growing team, who are working hard to execute on Phase One of our Zero Carbon Lithium Project, which aims to provide domestic lithium production for the auto industry, as well as renewable heating production on a larger scale for Europe, from 2025.

Vulcan Energy shares have slid 16% in the last year.

The post 3 ASX 300 shares on the move after quarterly updates appeared first on The Motley Fool Australia.

And it isn't hard to see why. Thanks to the electric vehicle boom, lithium prices surged to record levels last year. This has led to many ASX lithium shares generating mouth-watering returns for investors.

And while there are fears that prices could be on the way back down now, producers of the battery making ingredient are still well-placed to benefit greatly this year.

Given the sheer number of ASX lithium shares on the local market, it can be hard to keep tabs on which companies are mining the white metal and which aren't.

Below is a summary of many of the companies already mining and some that are almost there.

Which lithium shares are already producing?

At present, there are only a small number of ASX lithium shares that are actually mining the metal.

During the first quarter, Allkem Ltd (ASX: AKE) produced 17,606 dmt of spodumene concentrate from Mt Cattlin and 3,289 tonnes of lithium carbonate from Olaroz. Management is now aiming to triple its annual production by 2026 and maintain at least a 10% market share.

IGO Ltd (ASX: IGO) recently reported quarterly spodumene production of 361,000 tonnes and lithium hydroxide production of 195,000 tonnes.

Mineral Resources Limited (ASX: MIN) produced 101,000 dry metric tonnes (dmt) of spodumene concentrate from the Mt Marion operation and 64,000 dmt from Wodgina during the first quarter.

Finally, Pilbara Minerals Ltd (ASX: PLS) produced 147,105 dmt of spodumene concentrate in the first quarter. It also recently approved the expansion of the Pilgan Plant to ultimately deliver 1Mtpa of spodumene concentrate from the combined Pilgangoora operations.

Not quite there

A special mention goes to Argosy Minerals Limited (ASX: AGY) and Core Lithium Ltd (ASX: CXO), which are on the cusp of being lithium miners.

Argosy Minerals has completed 98% of the total works required for the 2,000tpa Rincon Lithium Project, located in Salta Province, Argentina. It recently produced 1 tonne of battery quality lithium carbonate during the commissioning period.

Core Lithium's Finniss operation in the Northern Territory is expected to be up and running later this year. Though, that didn't stop the lithium developer from making its first shipment of 15,000 dmt of 1.4% Li2O spodumene direct shipping ore last week.

The company sold the lithium to a lithium-ion battery supply chain participant in Fangcheng, China, for a price of $US951/dmt. This valued the shipment at approximately US$14.25 million.

Coming soon

Finally, this is when some other popular ASX lithium shares are due to commence production:

Liontown Resources Limited (ASX: LTR) is targeting first lithium concentrate production in 2024 from its Western Australian operations.

US-based lithium developer Piedmont Lithium Inc (ASX: PLL) is aiming for the first half of 2023.

Sayona Mining Ltd (ASX: SYA) is targeting production during the first quarter of 2023 from its North American operations.

Germany-based Vulcan Energy Resources Ltd (ASX: VUL) is planning to construct its first commercial plant in 2024.

The post Which ASX lithium shares are producing and which are not in 2023? appeared first on The Motley Fool Australia.

For example, as you can see below, the Pilbara Minerals Ltd (ASX: PLS) share price has been a strong performer again in 2022 and is smashing the market.

But Pilbara Minerals isn't the best performer in the industry, not by a long shot. A number of other lithium shares have outperformed the lithium giant with significantly stronger gains over the same period.

One of those is the Core Lithium Ltd (ASX: CXO) share price, which has more than doubled in value in 2022 and is up 150% on a 12-month basis.

But will lithium prices remain strong for long enough to justify these impressive gains? Let's take a look at what Goldman Sachs is saying about the white metal.

Where are lithium prices going?

Unfortunately, the commodity team at Goldman Sachs is expecting lithium prices to start to soften from the second half of next year. This is due largely to its belief that supply will finally catch up with demand and put downward pressure on both prices and lithium stocks. It commented:

Battery expansion related restocking demand and higher EV sales kept the market tighter in 2H22 than previously expected. Our commodity team now expect lithium prices through 1H23 to reflect the near-term tightness and lagging spodumene contract price pass-through before declining over 2H23. While we see earnings support for the Australian stocks over 12-18 months on price lags, on a 12m view we expect lithium stock prices to fall as lithium prices decline from record peaks.

Ultimately, Goldman is forecasting global lithium demand to grow to ~1,300kt LCE by 2025, but expects lithium production to hit ~1,700kt LCE.

In light of the above, its analysts expect lithium to command the following (per tonne):

• Lithium carbonate
  • 2022 US$59,331
  • 2023 US$53,300
  • 2024 US$11,000
  • 2025 US$11,000
• Lithium hydroxide
  • 2022 US$67,240
  • 2023 US$58,015
  • 2024 US$12,500
  • 2025 US$12,500
• Spodumene 6%
  • 2022 US$4,233
  • 2023 US$4,330
  • 2024 US$800
  • 2025 US$800

If Goldman Sachs is on the money with its estimates, then it could be bad news for developer/explorers that aren't expected to be producing lithium for a couple of years. By the time their operations come on line, they could be dealing with wildly different lithium prices.

Therefore, it might be time to rethink the valuations of lithium shares such as AVZ Minerals Ltd (ASX: AVZ) and Vulcan Energy Resources Ltd (ASX: VUL).

The post Here's the lithium price forecast through to 2025 appeared first on The Motley Fool Australia.

Vulcan shares closed on Friday trading for $7.08 and are currently trading for $7.14, up 0.85%.

Here's what's driving investor interest in the ASX lithium stock.

What did the ASX lithium stock announce?

The Vulcan share price is in the green after the company updated the market on progress at its Zero Carbon Lithium Project in the Upper Rhine Valley brine field, located in Germany.

Vulcan reported it has started 3D seismic survey works on the ground at one of its planned Phase 2 lithium and geothermal energy development areas in the Mannheim district. The company signed a renewable heat offtake agreement with MVV Energie, the utility for the city of Mannheim, in April 2022.

The ASX lithium stock also reported that its lithium pilot plant has produced all the data needed for its definitive feasibility study (DFS). The pilot plant recently confirmed the production of the highest grade, lowest impurity lithium hydroxide to date.

Commenting on the update sending the Vulcan share price higher today, CEO Francis Wedin said:

The Vulcan team is working hard towards developing renewable heating production on a mass scale for Central Europe, combined with sustainable, domestic lithium production for the auto industry, from our Zero Carbon Lithium Project in the Upper Rhine Valley, the largest lithium resource in Europe.

Wedin added:

It is encouraging to see timely approvals for, and execution of, our works on the ground, as we systematically execute very large 3D seismic surveys across the region. These surveys allow us to visualise the sub-surface, to employ industry best-practice modelling and planning for our well developments, which are targeting dual geothermal energy and lithium production.

Vulcan share price snapshot

The Vulcan share price is down 34% in 2022. That compares to a year-to-date loss of 6% posted by the All Ordinaries Index (ASX: XAO).

Longer term, Vulcan shares are up 216% over two years.

The post Vulcan share price gains on lithium project update appeared first on The Motley Fool Australia.

According to Oxford Languages, 'motley' means "incongruously varied in appearance or character". But in relation to our Foolish writers, it means they vary greatly with regard to age, risk tolerance, and stage of life as well as investing budget, timeframe, and expectations.

Despite their many differences, a passion for investing in ASX shares is something all our writers definitely have in common.

So when we asked them to let us know which of the ASX companies they own shares in that they are feeling particularly upbeat about right now, they leapt at the chance to share their thoughts.

Here's what they had to say:

8 of their own ASX shares our writers are especially pumped about (smallest to largest)

• Bailador Technology Investments Ltd (ASX: BTI), $185.59 million
• Alcidion Group Ltd (ASX: ALC), $199.72 million
• VanEck Morningstar Wide Moat ETF (ASX: MOAT), $454.32 million
• Vulcan Energy Resources Ltd (ASX: VUL), $1.01 billion
• Elders Ltd (ASX: ELD), $1.59 billion
• Telix Pharmaceuticals Ltd (ASX: TLX), $2.324 billion
• Domino's Pizza Enterprises Ltd (ASX: DMP), $5.70 billion
• Fortescue Metals Group Limited (ASX: FMG), $58.32 billion

(Market capitalisations as of market close on 25 November 2022)

Why these ASX shares set our writers' hearts aflutter

Bailador Technology Investments Ltd

What it does: Bailador exposes investors to a "portfolio of information technology companies with global addressable markets". It generally makes initial investments of between $5 million and $20 million in businesses in the 'expansion stage'. Some of the sectors that Bailador looks for are subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telco applications, and services. Siteminder Ltd (ASX: SDR) is currently one of its biggest investments.

By Tristan Harrison: The typical characteristics that Bailador looks for in a business to invest in are attractive to me. These include companies that are run by founders and have a "proven" business model with attractive unit economics, international revenue generation, "huge market opportunity", and the "ability to generate repeat revenue".

In the current climate of economic uncertainty, I think this sort of discerning approach could help this  ASX financial share excel over the long term. Yet, the Bailador share price is down 20% since the end of August.

Almost half the company's portfolio value is cash after Bailador recently sold its Instaclustr and SMI stakes for a combined $138 million. Due to those sales, $119 million of Bailador's total $246.8 million portfolio value is cash, providing protection and a hunting fund in these volatile times.

Motley Fool contributor Tristan Harrison owns shares in Bailador Technology Investments Ltd.

Alcidion Group Ltd

What it does: Alcidion is a healthcare informatics company that provides a range of software solutions to hospitals and healthcare professionals. Think everything from patient flow and bed management to real-time analytics, theatre management, waiting lists, and registrations.

Alcidion has an established foothold in Australia, New Zealand, and the United Kingdom, with its technology being used to manage more than 65,000 beds across 400 hospitals.

By Cathryn Goh: Although the digital transformation of business, in general, has been in train for some time, the healthcare sector has been somewhat of a laggard. Many hospitals are rooted in old-world systems. Others have embraced digital but use a variety of disparate systems that don't talk to each other.

This is where Alcidion enters the fray, offering hospitals everything from a fully-fledged electronic patient record (EPR) solution to individual software modules that play nice with existing technology investments.

Put simply, Alcidion is a mission-critical, scalable software business that's experiencing strong business momentum and has tipped into cash flow and earnings before interest, tax, depreciation and amortisation (EBITDA) positive territory.

With a newly-transformed offering and stiff industry tailwinds at its back, it's a small-cap ASX share I think holds plenty of promise.

Motley Fool contributor Cathryn Goh owns shares in Alcidion Group Ltd.

VanEck Morningstar Wide Moat ETF

What it does: This exchange-traded fund (ETF) holds a small portfolio of US shares that are deemed to show characteristics of Warren Buffett's famous 'economic moat'. In other words, intrinsic and durable competitive advantages.

By Sebastian Bowen: The VanEck Wide Moat ETF invests in a relatively small portfolio of quality US companies. The holdings are selected for their ability to demonstrate an economic moat. Types of moats can include an exceptionally strong brand, pricing power in a particular sector, or selling a product that many customers have no alternative for, to name a few.

This ETF has proven its approach works. The VanEck Wide Moat ETF has outperformed its benchmark S&P 500 Index (SP: .INX) over the past five years and since its inception in June 2015.

Since inception, the fund has averaged a return of 14.48% per annum (as of 31 October). This is more than enough to earn the VanEck Wide Moat ETF pride of place in my ASX share portfolio.

Motley Fool contributor Sebastian Bowen owns units in the VanEck Vectors Wide Moat ETF.

Vulcan Energy Resources Ltd

What it does: Vulcan Energy is an ASX lithium company working to develop its flagship Zero-Carbon Lithium Project, a German lithium brine resource. The project is expected to power its production using renewable energy from the brine's geothermal properties.

By Brooke Cooper: For me, my most exciting investment is one that also carries plenty of risk.

Vulcan Energy is working to develop a world-first zero-carbon lithium project. Thus, there's lots of scope for potentially-significant upside, but also the risk of error and misfortune along the way. Being in my 20s and having a long investment horizon, I'm okay with taking on this risk. 

Beyond the company itself, unprofitable resource shares are typically particularly susceptible to shifting market sentiment, as I've delved into previously. That's arguably one contributing factor to Vulcan's 34% year-to-date share price tumble.

However, I remain excited about the Zero-Carbon Lithium Project's potential, as well as the company's work in the geothermal power space.

Motley Fool contributor Brooke Cooper owns shares in Vulcan Energy Resources Ltd.

Elders Ltd

What it does: Since its founding in 1839, Elders has taken many forms over its 183-year lifespan. Today, the company derives most of its gross profits from its agricultural chemicals operations and agency services. Elders' agricultural industry involvement has also permeated into other areas such as fertilisers, animal health, and rural real estate.

By Mitchell Lawler: Upon releasing its FY22 full-year results last week, the market responded with a hefty sell-down of the agribusiness's shares. The Elders share price was demolished by nearly 23% in a single session despite sales revenue and underlying profit increasing by 35% and 42%, respectively.

News of the company's CEO, Mark Allison, retiring likely played a significant role in the shifting sentiment. Allison, without a doubt, was instrumental in conducting one of the greatest turnaround stories in Australia's corporate history.

While it will be a loss to the company, I believe Elders is strongly positioned to continue its growth. The company has made many acquisitions recently, bringing the trusted Elders brand to more locations and potential customers than ever before.

With a price-to-earnings (P/E) ratio of around 9.7, I believe this long-standing S&P/ASX 200 Index (ASX: XJO) share looks acutely underappreciated and undervalued.

Motley Fool contributor Mitchell Lawler owns shares in Elders Ltd.

Telix Pharmaceuticals Ltd

What it does: Telix is a pharmaceutical company that makes cancer diagnostic and treatment products.
The business is currently transitioning from a pre-revenue phase to a growth stage. In April, Telix commercially launched prostate cancer diagnostic tool Illuccix into the US market. The pharma also has other cancer products in the pipeline.

By Tony Yoo: Many experts are bullish on healthcare as Australia and the world head into an economic slowdown. The sector has defensive characteristics because consumers will still spend money on their health while cutting other costs.

I believe Telix combines this defensive streak with the potential for explosive growth as it develops new products for release into an aging population. The share price is down 10.3% year to date, still presenting an attractive entry point for those willing to hold long-term.

Motley Fool contributor Tony Yoo owns shares in Telix Pharmaceuticals Ltd.

Domino's Pizza Enterprises Ltd

What it does: Domino's Pizza Enterprises holds exclusive master franchise rights for the Domino's brand and network in Australia and several international markets such as New Zealand, France, and Japan.

By James Mickleboro: I recently took advantage of the significant weakness in the Domino's share price in 2022 to pick up some shares. I made the move on the belief that the pizza chain operator's shares are currently trading at a compelling level for a long-term investment.

While trading conditions are proving difficult for Domino's at present due largely to inflationary pressures, these headwinds will inevitably ease in time. In light of this, I think investors should look beyond this and focus on the long term, which remains very positive thanks to the company's store expansion plans.

Domino's aims to more than double its store footprint over the next decade. Combined with its same-store sales growth target of 3% to 6% per annum, I believe this bodes well for its growth.

Motley Fool contributor James Mickleboro owns shares in Domino's Pizza Enterprises Ltd.

Fortescue Metals Group Limited

What it does: Fortescue is the largest, pure-play iron ore miner on the ASX. It has multiple mining operations in the Pilbara region of Western Australia. It now has a subsidiary called Fortescue Future Industries (FFI), which is a green energy and technology business.

By Bronwyn Allen: I like investing in founder-led companies because I think there is inherently more passion and drive at the management level to keep the company growing and evolving.

Fortescue founder Andrew 'Twiggy' Forrest is one of Australia's pre-eminent business leaders and, I believe, an incredible innovator who gives the miner a significant edge.

Fortescue is one of the world's lowest-cost iron ore producers because Forrest has invested in infrastructure and technology, including robotics and artificial intelligence, like nobody else. I also think he's way ahead on what may be the biggest investment thematic of my generation – climate change.

Forrest spent much of COVID-19 travelling the world, establishing business and government partnerships to develop green hydrogen and other renewable energy technologies under the FFI banner. His goal is to transition Fortescue from an iron ore miner to a 'global green energy and resources company'.

I'm excited to see a leader in a 'dirty' industry like mining embracing climate change as an opportunity for business expansion, not a burden to core operations.

Motley Fool contributor Bronwyn Allen owns shares in Fortescue Metals Group Limited.

The post Skin in the game: The ASX share in my portfolio I'm most excited about appeared first on The Motley Fool Australia.

At the time of writing, the lithium developer's shares are up 4% to $8.10.

Why is the Vulcan share price charging higher?

Investors have been bidding the Vulcan share price higher today after the company released a positive announcement.

According to the release, Vulcan has successfully developed, tested, and demonstrated its own in-house lithium extraction sorbent, VULSORB, for sustainable lithium extraction from the Upper Rhine Valley Brine Field and the Zero Carbon Lithium Project.

The release notes that VULSORB has demonstrated higher performance and lower water consumption for lithium extraction in Vulcan's pilot plant, compared with commercially available sorbents tested by the company.

The company also highlights that the manufacturing process for the lithium extraction sorbent has been shown to be environmentally benign and many of the reagents are recycled.

Another positive with the process is that it is much faster and more efficient, with a lower carbon footprint, than the legacy industry method of using large-scale evaporation and large quantities of chemical reagents to extract the lithium and process into lithium hydroxide.

In fact, the sorbent extraction happens in hours, rather than up to 18 months as is the case with legacy extraction routes. This will allow Vulcan to quickly respond to the needs of its customers.

In light of the above, Vulcan has selected VULSORB as its first choice of sorbent for lithium extraction in its planned Phase 1 commercial development, with first commercial production of lithium targeted for the fourth quarter of 2025. Though, it intends to continue testing other sorbents from commercial suppliers to provide further optionality.

'Uniquely positioned'

Vulcan's CEO, Dr. Francis Wedin, commented:

In contrast to other developers who are increasingly using sorption in their developments but often outsourcing to external technology providers, Vulcan is uniquely positioned as both a lithium extraction technology provider, as well as a lithium chemicals and renewable energy developer.

Until now, there have been no commercially available sorbents for lithium extraction manufactured in Europe, thus making the region dependent on foreign supply chains. VULSORB will enable Europe to extract lithium from its own brine fields, without being exposed to geopolitical risk.

Vulcan will assess the potential of VULSORB to be used in other lithium brines in Europe and globally, particularly renewably-heated brines that can be used to extract lithium with net zero carbon footprint and zero fossil fuels, in line with Vulcan's strict mandate to be carbon neutral.

The post Vulcan share price storms higher on lithium extraction update appeared first on The Motley Fool Australia.

At the time of writing, the lithium developer's shares are up slightly to $7.51.

At one stage, the Vulcan share price was up as much as 4.5% to $7.85.

Why is the Vulcan share price rising?

Investors were buying the company's shares this morning after the company announced plans to expand its operations.

According to the release, Vulcan is expanding its activities to the French side of the Upper Rhine Valley Brine Field (URVBF). This accounts for roughly one third of the Upper Rhine Graben, containing both geothermal energy and lithium-rich brine.

Vulcan notes that it previously collected a bulk (10,000 litres) brine sample from the French side of the border and conducted test work on it. The sample returned a high grade of 214 mg/L Li and low impurities.

In addition, historical data and sampling coming from existing geothermal operations in the region indicate that the brine composition in the Alsace region is materially the same as the brine composition across the border at Vulcan's operations in Germany. Management believes that this means Vulcan's sustainable lithium production process is applicable across the whole field.

Management also highlights that Vulcan already has a strong connection to the French market with France's largest automakers Renault and Peugeot-Citroen. These brands are owned by Stellantis, which is Vulcan's second largest shareholder.

Vulcan's chief commercial officer, Vincent Ledoux-Pedailles, commented:

Vulcan is aiming to increase the future supply of our sustainable lithium product in response to significant customer demand, as we leverage our extensive experience in lithium extraction from heated brines to have a materially decarbonising effect on global electric vehicle supply chains.

An extension of our core operating area, the Upper Rhine Valley Brine Field, expanding into France is a natural next step for Vulcan as we can apply the same expertise and technology to extract lithium sustainably. We look forward to supporting our French customers and working with local communities and companies to decarbonise their energy mix.

The post What's going on with the Vulcan share price today? appeared first on The Motley Fool Australia.

The Vulcan Energy Resources Ltd (ASX: VUL) share price is up 0.69% amid the company posting its quarterly activities and cash flow reports for the September 2022 quarter this morning.

Shares of the ASX lithium stock are currently trading for $7.32 apiece. Earlier, they hit a high of $7.38 and a low of $7.18.

Let's go over the highlights of these reports from the lithium developer.

What did Vulcan Energy Report?

• Net cash used in operating activities: €5.13 million ($7.97 million)
• Net cash used in investing activities: €12.52 million ($19.45 million)
• Cash and cash equivalents down 9.81% from the previous quarter to €158.20 million ($245.79 million)
• Estimated quarters of funding available: 15

One of Vulcan's highlights for the September quarter was the beginning of on-site works at its sorption demo plant in Landau, Germany. This site will be important for training its staff in a pre-commercial setting.

Another achievement was producing "the highest grade lithium hydroxide samples that [Vulcan] has yielded to date". These were produced through its phase 1 definitive feasibility study that should be completed by the end of Q1 FY23.

Meanwhile, work also commenced at its Insheim and Landau-Süd licence areas to create an integrated lithium and geothermal energy project in the future.

What else happened in the September quarter?

A binding agreement was made with Enel Green Power for exploring geothermal lithium in Italy.

The company's first sustainability report was released covering the financial year of 2022. The report focused on climate-related financial disclosures (TCFD) and Vulcan's approach to sustainability practices.

Vulcan appointed a new deputy CEO, Cris Moreno, who has worked on lithium hydroxide and battery cathode plants in Europe.

What did management say?

Vulcan's managing director and CEO Francis Wedin said:

With winter approaching, and as Germany and Europe grapple with an energy crisis, Vulcan is making a positive impact by generating baseload, renewable power from our Insheim geothermal renewable energy plant. We are focused on delivering a significant contribution to renewable energy supply in Europe, by developing multiple large-scale renewable heat and power projects across the Upper Rhine Valley Brine Field.

As global supply chains continue to be challenging, Vulcan is leveraging our strong cash position to be strategic and proactive in procuring long lead items and key equipment. Our drilling company, Vercana, has secured long lead items required for the first drilling project and orders have been placed for all key equipment for the electrolysis demonstration plant, LiLy.

Vulcan Energy share price snapshot

The Vulcan Energy share price is down around 29% year to date. That's more than the S&P/ASX 200 Index (ASX: XJO), which has lost 8% over the same period.

The company's market capitalisation is around $1.04 billion.

The post 'Well positioned': Why the Vulcan share price is climbing today appeared first on The Motley Fool Australia.

The S&P/ASX 300 Index (ASX: XKO) is posting a modest gain on Wednesday, helped along by three shares that call the index home.

They've gained as much as 11.7% today amid, ahead of, and exclusive of, exciting announcements.

Meanwhile, the ASX 300 is up 0.27% at 6,794.4 points right now.

Let's take a look at what's driving them to outperform the iconic index this afternoon.

These 3 ASX 300 shares are taking off today

Among the top-performing ASX 300 shares today is Costa Group Holdings Ltd (ASX: CGC). The stock is rocketing 11.68% at the time of writing to trade at $2.49.

Its gains come on the back of news its historical parent company, Paine Schwartz Food, which spun Costa out in 2015, has bought a sizable chunk of its shares.

The private equity firm snapped up a 13.78% stake in Costa overnight, paying an average price of around $2.51 per share, as my Fool colleague James reports.

There's yet to be any clue as to whether the firm might attempt to further increase its stake or make a play for the company.

Another ASX 300 share taking off on Wednesday is Vulcan Energy Resources Ltd (ASX: VUL). Right now, its stock is up 5.24%, trading at $7.23.

Interestingly, there's been no word from the lithium developer – yet.

The company is expected to release its activities and cashflow report for the September quarter tomorrow. No doubt, all eyes will be on the stock on Thursday morning.

Finally, the Calix Ltd (ASX: CXL) share price is helping to buoy the ASX 300 despite the company's silence. It's soared 3.43% to trade at $5.73 at the time of writing.

While there's been no word from the environmental technology stock today, it did open a $20 million share purchase plan, expected to issue new shares for $4.55 apiece, yesterday.  

It follows a $60 million capital raise the company undertook last week.

The post 3 ASX 300 shares off to the races on Wednesday appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are storming higher:

Life360 Inc (ASX: 360)

The Life360 share price is up over 12% to $7.10. This appears to have been driven by a positive reaction to its price increases from brokers. One of those was Bell Potter, which has retained its buy rating and lifted its price target to $9.25. The broker believes that Life360's price increases could lead to it becoming EBITDA profitable a year earlier than expected in 2023.

Novonix Ltd (ASX: NVX)

The Novonix share price is up a massive 27% to $2.81. The catalyst for this could have been a broker note out of Morgans this morning. According to the note, the broker has upgraded the battery materials and technology company's shares to a speculative buy rating with an improved price target of $3.11. This follows the announcement of major US government funding last week.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up over 6% to $5.39. This morning the lithium miner revealed that it has sold another 5000 tonnes cargo of spodumene. The good news is that Pilbara Minerals received a price even higher than what it commanded last week from its latest BMX auction.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is up over 13% to $6.85. Investors have been buying this lithium developer's shares after it produced the highest grade, lowest impurity lithium hydroxide to date from its pilot plant. Management notes that the latest material produced graded 57.1% LiOH, which exceeds the best-on-the-market battery grade specification of 56.5% LiOH required from offtake customers.

The post Why Life360, Novonix, Pilbara Minerals, and Vulcan shares are storming higher today appeared first on The Motley Fool Australia.

This week has started out strong for ASX lithium fans, with some of the market's favourite lithium stocks leaping higher.

Indeed, these four have gained more than 10% at the time of writing. And there's been exciting news from many of the winners.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.64% right now while the All Ordinaries Index (ASX: XAO) has lifted 1.66%.

So, what's driving these ASX lithium shares to outperform on Monday? Keep reading to find out.

Why are these ASX lithium shares soaring more than 10%?

The first ASX lithium share to be posting a gain of more than 10% on Monday is Neometals Ltd (ASX: NMT).

The sustainability-focused battery mineral producer has developed a process to recover lithium from spent batteries. However, today's news from the company regards its Vanadium Recovery Project.

Finland has granted the project an environmental permit. The permit will allow the company to produce around 9,000 tonnes of vanadium pentoxide per annum from steel making by-product, slag.

The Neometals share price is currently up 11.14% at $1.167.

It's joined in the green by shares in Vulcan Energy Resources Ltd (ASX: VUL) – the company behind the Zero Carbon Lithium Project.

It revealed its sorption pilot plant has produced its highest-grade lithium hydroxide to date this morning, exceeding best-on-market battery grades. It also provided an optimistic update on its definitive feasibility study, due to be released next year.

The Vulcan Energy share price is up 11.92% right now, trading at $6.76.

The Galan Lithium Ltd (ASX: GLN) share price is also having a great day, surging 17.32% out of a trading halt to reach $1.49 at the time of writing.

The lithium explorer announced its Hombre Muerto West Project's mineral resource estimate has exploded to 5.8 million tonnes of lithium carbonate equivalent at 866 milligrams per litre lithium.

Finally, the Piedmont Lithium Inc (ASX: PLL) share price is leaping 10% to 93.5 cents today.

That's despite the company's silence. Though, it follows a similar gain posted by its NASDAQ listing overnight.

The post 4 ASX lithium shares surging more than 10% today appeared first on The Motley Fool Australia.

In morning trade, the lithium developer's shares are up over 12% to $6.79.

Why is the Vulcan share price racing higher?

The catalyst for the rise in the Vulcan share price on Monday has been the release of a promising announcement relating to its Zero Carbon Lithium Project in Germany.

According to the release, the company has produced the highest grade, lowest impurity lithium hydroxide to date from its pilot plant.

The lithium hydroxide was produced from Vulcan's sorption pilot plant, which is located at its commercial geothermal renewable energy plant, with downstream electrolysis processing offsite.

The release notes that the latest material produced graded 57.1% LiOH, which exceeds the best-on-the-market battery grade specification of 56.5% LiOH required from offtake customers. Impurities were also well below market specification minimums.

Another positive is that Vulcan's pilot plant, which has been operating since April 2021, has now produced sufficient data to complete the company's Phase 1 Definitive Feasibility Study (DFS), which is scheduled for the first quarter of 2023.

Based on the above, it seems quite likely that the DFS will be a success.

Management commentary

Vulcan's managing director and CEO, Dr. Francis Wedin, was encouraged by the results. He commented:

As our DFS draws towards its conclusion, we are encouraged by these latest highest grades and lowest impurities recorded to date, from LiCl production from our pilot plant, with electrolysis conducted offsite. The embodied renewable heat within our brine means we are able to leverage sorption, a commercially proven process to extract lithium from brines that requires heat to work. Sorption is highly selective, which means that we can produce a very pure LiCl eluate. This in turn means we are able to use lithium electrolysis, a method of producing lithium hydroxide directly which by its nature produces a very pure product, in excess of the purity required for use in Electric Vehicle (EV) batteries, with minimal reagent usage.

Works are continuing apace on our Demo Plant and DFS, and we are looking forward to sharing further updates with our stakeholders in the coming months, as we continue to execute towards our target of first commercial production from our Zero Carbon Lithium Project in 2025.

The post Vulcan share price rockets 12% on lithium update appeared first on The Motley Fool Australia.

A recession is technically defined as two consecutive quarters of negative economic growth. Thus, the Australian economy was officially in recession from 1 January until 30 June 2020, since Australia's gross domestic product (GDP) declined in both quarters.

Investors are clearly worried that we might be facing another economic contraction. Rising interest rates, inflation and an uncertain global outlook are certainly risk factors here. And there's no doubt investors are more than a little nervous today.

Whether or not another recession is coming is impossible to predict accurately. However, it's still a good opportunity today to examine which ASX All Ordinaries Index (ASX: XAO) shares escaped the recession last time around.

These All Ords shares dodged the 2020 recession

Vulcan Energy Resources Ltd (ASX: VUL)

The first All Ords share worth checking out is Vulcan energy. This lithium exploration company has a rare lithium opportunity in Europe. Together with its plans to maintain a carbon-free footprint, it has many investors excited about its future.

Vulcan shares conspicuously avoided the 2020 recession. In fact, the company rose from 16 cents a share in early January to a whopping 56 cents by the end of June – a gain worth 250%.

Temple & Webster Group Ltd (ASX: TPW)

All Ords online furniture retailer Temple & Webster was one of the more high-profile 'winners' from the COVID period. As Australians were confined to their homes in 2020, many flocked to this company's online-only business model to purchase furniture and other homely comforts.

We can see this reflected in Temple & Webster's share price. This company started 2020 at $2.75 a share. But by the time the recession officially ended, Temple & Webster was trading at a far more impressive $6.31. That's an improvement of almost 130%.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk shares may have had their fair share of woes recently. But if we backtrack to 2020, we find a company that weathered the recession exceptionally well. No doubt A2 Milk's strong brand and consumer staples nature helped investors see through the risks of that fraught period.

This former market darling began the 2020s at $14.25 a share. But six months later, the company came out of the COVID recession at a much-improved $18.66. That's a gain worth just over 76%.

The post Which ASX All Ords shares avoided a sell-off during the last recession? appeared first on The Motley Fool Australia.

Not many ASX lithium shares are as divisive as Vulcan Energy Resources Ltd (ASX: VUL). But, with many of its critics toting the company as both hopeful and exciting – albeit a long way from profitability – I'm holding onto my Vulcan shares.

The $1 billion S&P/ASX 300 Index (ASX: XKO) lithium developer differs greatly from its ASX peers. It aims to produce the battery-making material while maintaining a net zero footprint.

The company plans to use renewable energy from its geothermal and lithium brine resource to power its production.

Additionally, the resource is located in Europe, where lithium resources are few and far between and demand for the material is expected to surge.

Finally, the company aims to sell geothermal energy to the grid, thereby reducing Europe's reliance on Russian energy.

After all that spruiking, some might think Vulcan Energy sounds like the market's best-kept secret. But that's likely not the case.

Unfortunately for investors like myself, the Vulcan Energy share price has struggled in recent times. It has dumped 31% year to date and 42% over the last 12 months to trade at $7.50 today.

While there are plenty of reasons to be cautious when it comes to the lithium share, I'm still hopeful.

The ups and downs of my investment

My investment in Vulcan Energy was my first ASX share purchase. It's likely no surprise, then, that I've learnt a lot in my time holding the stock. If I could have that time again, here's what I'd want to know.

Plenty of ASX 300 shares are yet to turn a profit, but red balance sheets bring additional risks. And as Vulcan Energy isn't yet producing, the company is far from profitability.

Sentiment for unprofitable companies generally shifts alongside market conditions. Inflationary environments are particularly likely to turn the market away from companies operating in the red.

Investors should, therefore, be prepared to approach unprofitable stocks with realistic expectations of the potential volatility involved.

Additionally, the company's flagship Zero Carbon Lithium Project represents a world-first. Meaning there is plenty of potential for the company to experience major challenges along its journey to production.

Finally, since Vulcan Energy was targeted by activist short seller J Capital in October 2021, the company's short position has increased more than 500% to sit at 6.6% at last count.   

That seemingly means the market is more pessimistic on the stock than it once was. While Warren Buffett encourages investors to ignore the crowd, such pessimism can be hard to stomach.

I'm still bullish on Vulcan Energy shares

With all that considered, I'm still happy with my investment in Vulcan Energy shares. And I'm not alone in expecting a bright future.

Broker Alster Research has tipped the stock to reach $20, representing a potential 167% upside.

Meanwhile, Medallion Financial Group's Philippe Bui admits to being bullish on lithium, telling The Bull the company's technology is "exciting". However, as Bui prefers producers, he slapped Vulcan Energy shares with a sell.

Such sentiment was earlier heralded by Red Leaf Securities' John Athanasiou, who said, courtesy of the publication:

In our view, favourable potential exists for Vulcan Energy to become a lithium producer with a zero-carbon footprint … Market sentiment has firmly moved towards conservative profitable operations. We prefer other stocks until sentiment towards risk improves.

Vulcan Energy shares are a complicated investment and will likely experience ups and downs in the coming years, but I plan to stick around for the long haul.

The post Down 30% in 2022: Here's why I'm holding tight to my Vulcan Energy shares appeared first on The Motley Fool Australia.

The Vulcan Energy Resources Ltd (ASX: VUL) share price is gaining on Wednesday amid the release of the company's annual and sustainability reports.

Financial year 2022 saw the lithium hopeful progress its Zero Carbon Lithium Project and acquire an operational German geothermal renewable energy power plant.

The Vulcan Energy share price is $7.60 at the time of writing, 1.33% higher than its previous close.

For context, the All Ordinaries Index (ASX: XAO) is up 0.14% and the S&P/ASX 300 Index (ASX: XKO) has lifted 0.14%.

Let's take a closer look at today's news from the ASX 300 lithium developer.

Vulcan Energy share price lifts amid maiden revenue

Here are the key financial takeaways from Vulcan Energy's annual report (converted from Euro to AUD at today's exchange rate):

• Revenue of $5.66 million – up from zilch in financial year 2021
• Net loss of around $17.7 million – up from an $8.7 million loss
• Equates to an earnings per share (EPS) loss of approximately 22 cents
• Closed financial year 2022 with $266 million of cash

The company's strong financial position at the end of the fiscal year was largely due to its $200 million capital raise and a $76 million investment from automaker, Stellantis.

It also recorded its maiden revenue after acquiring renewable energy plant, Natür³Lich Insheim. The plant brought in around $4.5 million of revenue since its December acquisition.

What else happened in FY22?

Financial year 2022 was a busy one for the lithium hopeful.

The company has been strategically expanding its granted licence area to cover 1,465.38 square kilometres.

It also produced its first battery-quality lithium hydroxide monohydrate from piloting operations. The plant sample exceeded battery grade specifications required from offtake customers at more than 56.5% lithium hydroxide monohydrate with very low impurities.

The company has also signed lithium offtake agreements with Volkswagen, Renault, Stellantis, LG Energy, and Umicore. Its planned lithium production is now fully booked for the first five years of operation.

It believes such partnerships will see it take a key role in Europe's transition to electric vehicles.

Finally, the company faced a challenging period on the market when it was hit with a short-seller attack. The Vulcan Energy share price tumbled amid the release of a scathing report by activist short-seller J Capital.

What did management say?

Vulcan Energy chair Gavin Rezos commented on the company's activities and outlook:

Vulcan anticipates the use of geothermal renewable energy on a mass scale will play an important part in achieving Europe and Germany's energy security and independence.

In the Upper Rhine Valley Brine Field, the extraction of both renewable heat and lithium from the same geothermal resource will put Vulcan in the front seat of the transition to renewable energy and e-mobility in Europe.

We are confident that we have the right team to deliver for our shareholders, assisting Europe in its much-needed transition away from Russian gas supplies as soon as possible, whilst maintaining a strong sustainability focus.

What's next?

The company expects to deliver the Net Zero Lithium Project's definitive prefeasibility study in the first quarter of 2023.

It's also working to construct and commission its Sorption-Demo Plant. Cold commissioning of the plant is expected to begin later this year. Meanwhile, its lithium hydroxide production demo plant is progressing concurrently and is on track to start commissioning late in the first quarter of 2023.

Finally, Vulcan is progressing a systematic exploration program over its project area in the Upper Rhine Valley Brine Field.

Looking to its sustainability targets, the company plans to expand its taskforce for climate-related financial disclosures, pilot test the taskforce for nature-related financial disclosures, and publish its first communication on progress as part of its United Nations Global Compact membership.

Vulcan Energy share price snapshot

Sadly, the Vulcan Energy share price has been struggling lately.

It has dumped 30% since the start of 2022. It's also trading 42% lower than it was this time last year.

For comparison, the ASX 300 has fallen 15% year to date and 11% over the last 12 months.

The post 'We have the right team to deliver': What's going on with the Vulcan Energy share price today? appeared first on The Motley Fool Australia.

The Fortescue Metals Group Limited (ASX: FMG) share price has beaten the broader market by a significant margin this afternoon.

Shares in the iron ore miner closed 1.33% higher at $16.76 on Friday. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) was steep in the red, posting a hefty 1.87% loss.

The S&P/ASX 200 Materials Index (ASX: XMJ) also struggled, closing the day with a 0.49% loss.

So why is Fortescue green in a sea of red?

Investors may be staying optimistic amid the company's massive $9.2 billion decarbonisation plans that were announced on Tuesday. Fortescue intends to emit zero terrestrial emissions from its iron ore operations by 2030, which will confer the company several benefits.

First, it will reportedly derisk its product as governments use increasingly heavy-handed tactics to get emissions under control, including by issuing penalties. Staying behind the ball now may prevent Fortescue from being blindsided by fines and possible restrictions on its operations later.

There may also be more tangible benefits for the company to offer a net-zero product.

Increased demand

ASX lithium shares like Vulcan Energy Resources Ltd (ASX: VUL) are building an economic moat by exploring lithium geothermal extraction methods that release no emissions into the atmosphere. It's posited that Vulcan's output may command higher prices over lithium produced from hard-rock mining.

A carrot and stick situation may unfold where governments may favour or even enforce that companies buy from aspiring net-zero producers such as Fortescue and Vulcan. This, in turn, would shrink the total supply of net-zero elements and commodities, creating further scarcity.

My Fool colleague James also notes that Fortescue expects to realise significant cost savings from the transition to net zero.

Decreased costs

Fortescue expects to save $US818 million per year by 2030. It's expected to recoup its multi-billion dollar investment by 2034.

Cost savings will reportedly be seen from the company moving away from fossil fuels and instead relying on renewable energy generators. Its savings will also be boosted by Australian carbon credit units and not paying carbon offset purchases.

In practice, the company will deploy renewable energy generators and green-powered vehicles for its fleet and mining equipment. Studies are underway to harness wind and solar energy sources at its exploration sites.

Fortescue share price snapshot

The Fortescue share price is down 15.57% year to date. Meanwhile, the S&P/ASX 200 Index is down 13.37% over the same period.

The company's market capitalisation is $51.6 billion based on the current share price.

The post The Fortescue share price has outpaced the ASX 200 today. Could green dreams be why? appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why these ASX shares are dropping:

Block Inc (ASX: SQ2)

The Block share price is down a massive 9% to $83.86. Investors have been selling this payments company's shares in response to weakness from its US listed shares over the last two trading sessions. This has been driven by a tech selloff in response to the US Federal Reserve's rate hike.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down over 3% to 88 cents. This follows major weakness in the tech sector that has seen the S&P/ASX All Technology index fall by a sizeable 4.5% today. Given that Brainchip is a loss-making semiconductor company with little revenue, it's impressive that its shares are holding up as well as they are in the current environment.

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's share price has continued its slide and is down a further 5% to $53.45. At one stage, this pizza chain operator's shares dropped to a new two-year low. While today's decline is due to the market selloff, Domino's shares have come under pressure this year due to concerns about the impact that inflation could be having on its operations.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is down 4% to $7.54. This is despite there being no news out of the lithium developer. However, it is worth noting that higher risk shares are being sold off today amid the market weakness. This has led to many lithium shares dropping deep into the red.

The post Why Block, Brainchip, Domino's, and Vulcan shares are sinking today appeared first on The Motley Fool Australia.

After suffering the last two trading days, the Vulcan Energy Resources Ltd (ASX: VUL) share price is back in the green today.

The clean lithium developer's shares stumbled 1.60% and 2.25% on Friday and Monday, respectively.

But, with broader gains being achieved across the market today, Vulcan shares are currently up 1.02% to $7.90 apiece after hitting an intraday high of $8.23 a share, a gain of more than 5%.

What's powering Vulcan Energy shares ahead on Tuesday?

Investors are bidding up the Vulcan Energy share price as the wider sector recovers from the volatility that's occurred over the past two weeks.

As the S&P/ASX 200 Index (ASX: XJO) is 1.19% higher in late afternoon trading. The benchmark index is following Wall Street's lead after US equities recorded modest gains overnight.

It appears the market has now factored in the upcoming interest rate hike by the US Federal Reserve.

Economists are expecting the central bank to lift interest rates by up to 100 basis points in an ongoing bid to cool down inflation.

The latest US CPI data showed inflation rose by 0.1% on a monthly basis and 8.3% over the last 12 months.

Also providing support today is the S&P/ASX 200 Materials (ASX: XMJ) sector which is the second-best performing index.

The sector is up 2.35%, slightly behind the leader, the S&P/ASX 300 Metals and Mining Index (ASX: XMM), up 2.42%.

Vulcan Energy share price snapshot

Bearish sentiment mixed with volatility has led the Vulcan Energy share price to fall 46% over the last 12 months.

The company's shares reached an all-time high of $16.65 in September 2021, before moving on a downward channel.

Whether it can regain these highs largely depends on the price of lithium as well as Vulcan Energy's progression on its Zero Carbon Lithium Project.

Based on today's price, Vulcan Energy commands a market capitalisation of around $1.13 billion.

The post Why is the Vulcan Energy share price lifting today? appeared first on The Motley Fool Australia.