Why the Lithium Australia (ASX:LIT) share price is rocketing 9%

New production news appears to be exciting investors…
The post Why the Lithium Australia (ASX:LIT) share price is rocketing 9% appeared first on The Motley Fool Australia. –

The Lithium Australia NL (ASX: LIT) share price is shooting straight for the moon – in an environmentally friendly way, of course.

The positive price movement comes as the company announces one of its subsidiaries is expanding its battery manufacturing capabilities.

At the time of writing, shares in the lithium technology company are trading for 12.5 cents – up 8.7%.

Let’s take a closer look at today’s news.

The Lithium Australia share price is blasting off

In a statement to the ASX, Lithium Australia says its subsidiary, VSPC Ltd, a developer and manufacturer of advanced cathode materials for lithium-ion batteries (LIBs), is now also producing commercial-quality lithium titanium oxide (LTO) anode powder.

Conventionally, LTO is prepared via a solid-state reaction, with titanium dioxide and lithium carbonate or lithium hydroxide as the raw materials. The materials are heated at temperatures above 800C for 12 to 24 hours to ensure high-phase purity. An LTO battery is more advantageous than other lithium-ion batteries because it is faster to charge than traditional batteries.

This news is clearly revving the engines of investors, at least judging by the rising Lithium Australia share price.

As well, Lithium Australia announced it will expand its research into other anode battery materials, including titanium niobium oxide and other niobium-based anode materials. These are often used in space and defence applications. VSPC is now developing an anode materials work program in conjunction with other organisations.

Management commentary

Adrian Griffin, Lithium Australia managing director, said

To achieve the performance desired for next-generation LIBs, improved anodes are also required. VSPC’s patented technologies are applicable to the production of both anode and cathode materials. Currently, VSPC produces the world’s highest performing LFP cathode powder and is among only a handful of companies capable of producing high-energy-density LMFP [lithium manganese ferro phosphate].

Market demand for advanced nickel and cobalt-free batteries puts VSPC in a unique position to deliver precursors that meet more exacting performance requirements. VSPC’s successful production of high-performance LTO is an Australian first, as well as a global necessity.

Lithium Australia share price snapshot

Over the past 12 months, the Lithium Australia share price has increased 150%. Year-to-date, shares in the company are up 108%.

Its 52-week high is 21 cents per share and its 52-week low is 4.8 cents per share. Lithium Australia has a market capitalisation of approximately $125 million.

The post Why the Lithium Australia (ASX:LIT) share price is rocketing 9% appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lithium Australia right now?

Before you consider Lithium Australia, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lithium Australia wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Here’s why the Lode Resources (ASX:LDR) share price is rocketing 120% today

When will the Aristocrat Leisure (ASX:ALL) share price get moving again?

ASX 200 (ASX:XJO) midday update: BHP’s Q1 update, CSL’S R&D update

Tabcorp (ASX:TAH) share price slides after trading, demerger update

Here’s why the Deep Yellow (ASX:DYL) share price is up 5% on Tuesday

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!