The Lake Resources N.L. (ASX: LKE) share price is rocketing higher today. This comes after the company announced that it has received positive battery test results. In early morning trade, the lithium-focused mineral exploration company's shares are up 19.4% to 46 cents. At the time of writing, the share price has retreated slightly to 38 cents.
Let's take a closer look at the announcement and what that means for the Lake Resources share price.
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What's driving the Lake Resources share price higher?
The Lake Resources share price is on the move today as investor appear upbeat about the company's prospects.
In this morning's release, Lake Resources advised that it has received favourable test results for its 99.97% purity lithium carbonate. This is used in high-performance lithium-ion batteries.
Novonix Ltd (ASX: NVX) is a battery materials and technology company. Recently, it carried out test-work to compare batteries samples from tier 1 producers against Lake Resources. Novonix is well-regarded across the industry in providing high-precision battery testing equipment to tier 1 battery makers. Their client list includes Panasonic, Samsung, Bosch, Honda, Dyson, and others.
Novonix received commercial samples of NMC622 batteries from tier 1 producers. Additionally, with samples of Lake's 99.97% purity lithium carbonate battery cells. Interestingly, it noted that when conducting a real-world comparison, Lake Resources' product ended up on top. The results indicated improved capacity retention and better electrochemical behaviour in coin cells compared against the tier 1 producer's batteries.
Consequently, Novonix will begin to ramp up its testing program to produce cells and batteries at a larger scale. However, it is expected that this will take a number of months to complete the process. Lake Resources stated that it will update the market when the results become available.
Management commentary
Lake Resources managing director Steve Promnitz hailed the test outcome, saying:
The results from Novonix demonstrate the high quality of Lake's high purity lithium in batteries and future results are anticipated to reinforce the initial results. This provides electric vehicle makers and battery makers confidence around Lake's product quality, which is particularly important given the increasing demand for a high purity product.
Lake is advancing the Kachi DFS amid a growing focus on sustainability and the need for a responsibly sourced product suitable for the supply chains of leading EV makers. With investor and industry engagement intensifying, Lake is in an excellent position to progress our product and unlock increased value for shareholders.
About the Lake Resources share price
The Lake Resources share price has accelerated in the past year, gaining more than 880%. While renewed investor sentiment within the battery industry has helped support the share price, the company has been making tailwinds. Just last month, the company's shares rose close to 40%. This was on the back of the announcement of its shallow drill testing at its flagship Kachi Lithium Brine Project in Argentina.
Based on the current share price, Lake Resources commands a market capitalisation of close to $400 million.
