Anson Share Price Jumps on NOVONIX Battery Test (ASX:ASN)

The Anson Resources Ltd [ASX:ASN] revealed positive battery test work results from NOVONIX today.

On the news, Anson share price spiked 22%.

ASN is currently exchanging hands for 12 cents per share.

ASX ASN - Anson Resources Share Price ChartSource: TradingView.com

 ASN’s share price increased by almost 500% over the course of 12 months.

Let’s look at today’s announcement in detail.

How to Capitalise on the Potential Commodity Boom in 2021. Learn More.

Positive battery test results

 Anson said it received positive battery test work results from recent high-flyer NOVONIX Ltd [ASX:NVX] using ASN’s high-purity lithium carbonate and lithium hydroxide.

Anson reported its 99.9% purity Li2CO3 product performed better than commercially available battery-grade Li2CO3 in lithium-ion battery cells.

Specifically, testing showed ASN’s Li2CO3 product had ‘similar or better’ first-cycle efficiency and lower gas production during formation cycles than reference material.

ASN’s product also had less capacity loss and lower-impedance growth during cycling testing.

Finally, the company’s product reported a lower voltage drop and gas production after high temperature storage tests.

Anson thinks this may indicate a higher cathode stability than reference material.

As for Anson’s lithium hydroxide product, it showed similar results to products available to the market right now in long-term cycle experiments.

Anson said the key takeaway from the test work is that Anson materials ‘retain more of the available capacity after the first formation cycle and during UHPC tests Anson materials clearly showed lower capacity losses.

 It is considered that these attributes will be of interest to potential battery manufacturers as these provide a longer lifespan of the battery.

 What’s next for the Anson Resources Share Price?

Today’s test results were promising and today’s big jump in ASN’s share price suggests shareholders are pleased by Anson’s progress and potential.

Investors will now monitor if the reported test results indicating Anson’s product has a longer lifespan compared to commercially available battery grade Li2CO3 can help ASN secure off-take agreements.

Anson’s Executive Chairman and CEO, Bruce Richardson said:

The results confirm and enhance the results for the earlier test work conducted by NOVONIX on behalf of Anson.

 The purity of the Anson product provides it with a performance advantage over existing commercial products which is expected to attract lithium-ion producers that are aiming to provide a high-performance product.

 As well, demand for such a sustainably-produced and responsibly-sourced product is growing in North America and Europe as electric vehicle makers look to bolster their ESG credentials.

If you’re in the business of supplying a commodity like lithium, securing a differentiating edge is a competitive advantage.

For lithium stocks, that could mean having higher purity grades or ESG-friendly extraction processes.

But this isn’t a secret. Other junior lithium players will be aware of this.

That’s why it was interesting Anson was talking about the superior performance of its material to existing commercial products.

As the demand for high-purity lithium percolates through the industry, we may see other junior lithium producers come into the market in the medium term with products of similar purity to Anson’s.

This will be great for the end consumers, but time will tell how the rising competition will affect players like Anson.

If you’re interested in further reading on the booming lithium industry, I suggest having a read of our recent lithium stocks report for 2021.

The report also goes through three unique lithium companies: a European lithium developer, an established Aussie producer, and a speculative WA miner.

Interesting read for sure!

 

Regards,

 Kiryll Prakapenka,

 For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here


Kiryll Prakapenka is an investing autodidact who is passionate about conducting in-depth research on investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from The University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding of the fundamentals behind companies.


Money Morning Australia