LIT Share Price Falls Despite Battery Recycling Patent Application (ASX:LIT)

The Lithium Australia NL [ASX:LITshare price is down today despite LIT filing a patent application concerning the recycling of alkaline batteries.

ASX LIT - LIT Share Price ChartSource:

After a brief rise in morning trade, LIT shares slumped in the afternoon.

At the time of writing, the lithium stock was down 4%, exchanging hands for 12 cents — well down from its 52-week high of 21 cents.

LIT ‘fortifies’ its intellectual property

Lithium Australia today announced that its 90%-owned subsidiary Envirostream Australia filed a Patent Cooperation Treaty (PCT) application with IP Australia.

The application relates to Envirostream’s recycling process for alkaline batteries.

The process involves the separation of electrode materials (like cathode material or an anode) from alkaline batteries.

LIT said the alkaline battery separation process was used to generate samples for the 2021 field trial programme undertaken by its subsidiary.

Lithium Australia’s Managing Director, Adrian Griffin, thinks the patent can add further value to alkaline batteries:

The ability to add value to spent alkaline batteries is a further demonstration of Envirostream’s leading edge in the field of battery recycling.

A timely technical advance, it coincides with the introduction of the national battery stewardship scheme, designed to divert end-of-life batteries from landfill, and will enhance the value of the spent alkaline batteries available for recycling.’

LIT share price outlook

While LIT shares traded up in the morning, the momentum could not be sustained as the price fell.

After a vertical run-up of its share price in January, the LIT stock has retraced in recent months, down 40% from the January high.

It’s been treading water for the last three months.

So today’s decline could indicate a market that wanted bigger news than the one LIT announced today.

Although securing intellectual property is important in differentiating yourself in an industry dealing with a commodity metal, today’s patent update did not elaborate on the patent application’s commercial ramifications.

Additionally, Lithium Australia was not the only sustainability focused lithium producer to make an announcement.

Magnis Energy Technologies Ltd [ASX:MNS] today secured $20 million to fund its ‘green high performing lithium-ion batteries’ and rapid charging technologies.

At the time of writing, MNS shares were up 7.4% on the news.

It could be that some investors saw MNS as the greener pasture and redistributed their capital accordingly.

If you’re researching lithium stock investments and want more information or ideas, then I’d recommend reading Money Morning’s free 2021 lithium report.

If you’re keen for more reading, this report on energy disruption is also a great resource. It goes through finding promising energy stocks and discusses why the energy market is ripe for massive disruption.


Lachlann Tierney,

For Money Morning

PS: In this new report, Money Morning’s Ryan Dinse reveals why he is convinced that lithium is going to rebound in 2021. Get the FREE Report

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:

Money Morning Australia