Core Lithium's (ASX:CXO) reduced cost expectations will balance out the estimated lithium price reductions in the long term, said Jarden Research in a Thursday note.

The research firm noted that the estimated costs for underground mining have been cut nearly in half to around AU$63 to AU$72 per tonne, compared to AU$120 per tonne expected previously.

Jarden estimates the company has around AU$27 million in cash, and it will need to raise AU$250 million to restart its Finnis project, but the cost is much lower than the previous expectation of AU$280 million.

Jarden Research upgraded Core Lithium to neutral from sell with a raised price target of AU$0.10 from AU$0.07.

The company's shares fell 6% in recent Thursday trade.