Lithium Australia Shares up 12% on Cobalt-Free Battery Update (ASX:LIT)

The Lithium Australia NL [ASX:LIT] share price climbed during early morning trade by 12% after the company released an ASX announcement.

LIT’s update covered rapidly rising lithium prices and the growing popularity of cobalt-free batteries — both markets in which Lithium Australia claim a strong stake.

The LIT share price has more than doubled in value this year, and it’s clear that energy investors are eager to get their hands on the stock.

But was this morning’s announcement all bluster and bravado or was there genuinely a new development within the company?

Let’s look at the release in more detail.

LIT ASX shares on the move due to an announcement…

Today, it was revealed that lithium company’s subsidiary VSPC is advancing its plans to establish a strategic position in the market for cobalt- and nickel-free lithium-ion batteries (LIBs).

According to the release, cobalt-free and nickel-free LIBs are safer, long-lasting and require less raw materials compared to cobalt-based and nickel-based alternatives.

These more effective LIBs are skyrocketing in popularity (particularly for use in electric vehicles and energy storage) and as a result, Lithium Australia are surging forward to ride the tailwinds…

Other highlights of the announcement unveiled growth in the lithium market in general.

Data reported by The West Australian yesterday shows that the price of battery-grade lithium concentrate has increased by 144% this year alone.

Lithium Australia describe the price as ‘white hot’ and pointed to the recent lithium concentrate (spodumene) auction held by Pilbara Minerals Ltd [ASX:PLS], with the highest bid coming at the equivalent of US$2500/tonne (on a 6% lithia basis).

Optimistic comments from management…

Managing Director of Lithium Australia, Adrian Griffin, commented:

To develop renewable energy security, Australia requires a domestic battery supply chain. Pragmatic political policies and government support are a step in the right direction and the Modern Manufacturing Initiative — Collaboration Stream grants will hopefully provide some of that support.’

He went on to advise:

The shortage of nickel- and cobalt-free cathode materials outside China is of great concern; however, the possibility of producing such material here in Australia has garnered enthusiastic support — from local miners right through to international battery producers. This country needs to act now, building on its resource base and developing the value-add that can position Australia as a leader in the new energy revolution.’

These are strong words from management and it’s evident that the share market is responding positively as a result.

But other investors may be more cautious…

As only last month, the ASX

But no matter how you feel about Lithium Australia, there’s no denying that lithium is a high-potential space to play in right now as an investor.

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

The lithium revolution is accelerating…

History-making changes are happening all over the world, from electric vehicles to emerging renewable energy technologies.

It’s quite likely that in a decade’s time, much of our world will be somewhat unrecognisable today.

And battery technology will help to propel a lot of this change throughout the 2020s.

Which is why certain lithium stocks hold so much potential right now.

Our market experts have found three of them on the ASX right now that could be set to soar this year. We’ve revealed them in a free report, which you can download and read today.

Get your free copy of ‘Three Lithium “Bounce-Back” Stocks for 2021’ here.

It’s essential reading for investors looking to profit from what could potentially be a monumental run for lithium stocks…

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