The Lithium Australia NL (ASX: LIT) share price has been a strong performer on Wednesday morning.
In early trade the lithium company's shares are up 13% to 13 cents.
Today's gain means the Lithium Australia share price has now more than doubled in value since the start of the year.
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Why is the Lithium Australia share price zooming higher?
Investors have been buying Lithium Australia shares today following the release of a positive announcement.
According to the release, the company's wholly owned subsidiary VSPC has had its Australian patent for its proprietary cathode material manufacturing process accepted.
VSPC's method of synthesising lithium metal phosphates was confirmed to be novel and inventive by IP Australia.
This provides the company with 20 years of intellectual property protection within Australia. In addition, filing of the Australian patent application also sets a worldwide priority date for the invention.
What is the process?
The release explains that VSPC has simplified a process for the production of lithium metal phosphate cathode powders. This enables the use of a broader range of raw materials as feed.
The company notes that this has significantly reduced the cost of manufacturing lithium ferro phosphate (FP) and other lithium metal phosphate materials. This includes lithium manganese iron phosphate (LMFP).
Lithium Australia's Managing Director, Adrian Griffin, was pleased with the development.
He said: "Acceptance of the patent application for the production of phosphate-based cathode materials for LIBs is a great step forward for the Company. Lithium Australia/VSPC can now provide practical solutions for electric vehicle manufacturers seeking cobalt-free batteries."
"Further, the Company's recent development of LMFP demonstrates the potential for phosphate-based, nickel- and cobalt-free batteries to achieve high energy densities, an ideal combination in terms of e-mobility applications. Patent protection will provide us with a significant cost advantage in the production cycle of what is currently the most rapidly expanding sector of the battery industry."
