Why the Ioneer (ASX:INR) share price is up 16% this week

The Ioneer (ASX: INR) share price is soaring this week, up 16% since Monday. Let's take a look at the company's recent announcements.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Ioneer Ltd (ASX: INR) share price is having a stellar week, up 16% since Monday. Shares in the rare earth explorer rocketed up 11% to 33.5 cents yesterday as the company announced that it has made inroads into supplying the booming EV sector.

In trading today, the Ioneer share price has dropped 2.99% down to a price of 32.5 cents at the time of writing.

What Ioneer does

Ioneer is a rare earth explorer, located predominantly in the US. It is the 100% owner of Rhyolite Ridge in the Nevada desert. Ioneer claims this to be the only lithium-boron deposit in North America and one of only two such deposits in the world.

Ioneer's feasibility study completed in April 2020 confirmed Rhyolite as a "world class" lithium and boron site. The company expects the mine to become a "globally significant, long-life, low-cost source of lithium and boron".

What's driving the Ioneer share price?

The company advised yesterday that its metallurgy and process engineering team successfully converted lithium carbonate produced at its pilot plant. The team was able to turn the lithium into battery grade lithium hydroxide essential in electric vehicles.

Moving forward, the company remains highly focused on securing off take agreements for its lithium products, having already agreed binding deals for its boric acid.

The ability to manufacture both lithium carbonate and hydroxide places the company apart from other producers, such as Pilbara Minerals Ltd (ASX: PLS), Galaxy Resources Limited (ASX: GXY) and Piedmont Lithium Ltd (ASX: PLL).

Management comments

Ioneer  managing director Bernard Rowe welcomed the news, stating:

Rhyolite Ridge will be well-positioned to meet both North American and global demand for Lithium carbonate and battery grade lithium hydroxide.

As the premier US project, Ioneer will be uniquely situated to supply the future US electric vehicle platforms of automotive OEMs. Benchmark Mineral Intelligence predicts that US demand for lithium carbonate and lithium hydroxide could exceed 344kt by 2025 with nearly no domestic supply.

The company also noted that the Tesla Inc (NASDAQ: TSLA) Gigafactory is located just 203 miles northwest of the project site.

Despite falling today, the Ioneer share price has gained a whopping 76% year to date.

More on Share Market News

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 shares can rise 20% to 50%

Let's see which shares are being tipped to rocket from current levels.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Broker Notes

Why Guzman Y Gomez shares are a sell

Goldman Sachs has given its verdict on the burrito seller.

Read more »

A man pulls a shocked expression with mouth wide open as he holds up his laptop.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Man looking at his grocery receipt, symbolising inflation.
Share Market News

How are ASX 200 investors responding to the latest Aussie inflation numbers?

The ASX 200 was up 0.2% today before the ABS reported the latest inflation figures.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Broker Notes

Macquarie sees more upside in Telstra shares – What are they worth?

Telstra shares are up 34% over the past year, and Macquarie thinks there's more to come.

Read more »