The Core Lithium Ltd [ASX:CXO] share price is up today after producing battery-grade lithium hydroxide monohydrate (LH) from the Finniss Lithium Project.
CXO shares were up as much 6.6% in early trade before settling 4.4% up at the time of writing.
Along with other ASX lithium stocks, CXO has enjoyed recent investor support.
The CXO share price is up 55% YTD and up 490% over the last 12 months.
Source: Tradingview.com
Core Lithium produced battery-grade lithium
CXO revealed today that it produced battery-grade lithium hydroxide monohydrate (LH) from spodumene mineral concentrate from its Finniss Lithium Project.
The company’s scoping level test work program demonstrated that the conventional ‘direct’ flowsheet can be applied when processing mineral concentrate samples to produce battery-grade LH.
Core’s LH satisfied ‘all impurity specifications of the commonly referenced battery grade specification from Livent.’
Core stated that demand for its concentrate is ‘increasing rapidly’ and the company is therefore seeking to complete new offtake agreements in ‘due course’.
Core Lithium’s Finniss Lithium Project was awarded Major Project Status (MPS) by the Australian government last month.
An MPS is conferred on projects deemed of national significance by the government, either for economic or employment growth.
MPS recipients are supported by the Major Projects Facilitation Agency.
The MPS for Finniss Lithium Project extends for three years.
Core Lithium share price outlook
CXO stated that due to the test work program results, it is now considering the ‘obvious down-stream value potential given the Project’s synergies with the adjacent Middle-Arm industrial infrastructure near Darwin’ as well as the growth of the global lithium battery supply chain for electric vehicles and other renewable energy markets.
That said, Core still needs to complete the definitive feasibility study for its Finniss Lithium Project as well as reach a final investment decision regarding the project in Q3 2021.
While the growth in electric vehicle supply will correlate in increased demand by automakers for lithium materials, junior companies like Core Lithium still have many obstacles to overcome before fully capitalising on the shift to green energy.
The upcoming developments regarding Core’s Finniss Lithium Project will likely go a long way in determining the market’s sentiment towards CXO stock.
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Regards,
Lachlann Tierney,
For Money Morning
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