Key points:
- Cleantech Lithium shares rallied 13.2% on positive initial testwork.
- The firm generated a 1kg lithium carbonate sample that was tested.
- The tests indicated that the sample was of extremely high quality.
- So, what’s next for the firm. Read on to find out.
The Cleantech Lithium PLC (LON: CTL) share price rallied 13.2% after revealing that it had completed the laboratory scale Direct Lithium Extraction (DLE) test-work to produce a 1-kilogram sample of lithium carbonate, which an independent laboratory then tested.
The lithium exploration and mining company said it had extracted brine from Laguna Verde, which its partner Beyond Lithium processed via a DLE process to generate a sample of battery-grade lithium carbonate.
Also read: The Best Lithium and Lithium Mining Stocks To Buy.
An independent laboratory in Germany known as Dorfner Anzaplan tested the sample for any impurities and found that its grade was >99.9% Li2CO3, which was much better than the >99.5% Li2CO3, benchmark grade for battery-grade lithium carbonate.
Cleantech Lithium attributed the high quality of its lithium carbonate to the proprietary DLE princess developed by Beyond Lithium that uses Alumina based resin to adsorb lithium combined with other processing steps such as mechanical evaporation, reverse osmosis, carbonation and impurity removal.
The lithium exploration company pointed out that the absorption process occurred at a temperature of 20oC, the same temperature as the subsurface brine sampled at Laguna Verde. Therefore, the process could help minimise the environmental impact and costs of the entire project.
Investors cheered the news, as evidenced by the rally in Cleantech Lithium’s share price. The company intends to conduct a pilot-scale operation on the site, funded by the monies raised during its recent IPO.
Aldo Boitano, CleanTech Lithium’s CEO, said: “We are very pleased with the results of the laboratory scale DLE testwork producing a high-quality battery-grade sample with a Lithium Carbonate grade exceeding 99.9%. This is a proprietary process developed for the Laguna Verde brine, which is designed to be scalable, cost-effective and to minimise the project's environmental footprint.”
The lithium company is well-positioned to benefit from the expected massive demand for lithium batteries due to the rapid adoption of electric and hybrid vehicle technology.
Cleantech Lithium shares are currently trading adobe their recent lows of 22p and may be attractive to long-term investors. However, we do not have sufficient price data given that the company held its IPO on 17 March 2022.
*This is not investment advice. Always do your due diligence before making investment decisions.
Cleantech Lithium share price.
Cleantech Lithoum's share price rallied 13.2% to trade at 30.0p, rising from Tuesday’s closing price of 26.50p.