The Lithium Australia NL (ASX: LIT) share price is powering higher today after the company announced its subsidiary's cathode powder has met industry standards.
At the time of writing, the Lithium Australia share price is 12 cents – 9.09% higher than its previous closing price.
Let's take a closer look at today's news from Lithium Australia.
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A win for Lithium Australia's cathode powder
Lithium Australia announced today VSPC Ltd's second-generation lithium manganese ferro phosphate (LMFP) cathode powder has met industry performance and physical property specifications.
VSPC is a subsidiary of Lithium Australia.
LMFP is a high-capacity lithium-ion battery cathode powder that contains no nickel or cobalt.
According to the company, it's a cheaper and safer cathode material to use in high-energy drawing applications, such as electric vehicles and large-scale energy storage.
Additionally, the company states it can customise the cathode material's performance criteria to individual customer specifications.
Lithium Australia states Tesla Motors and BYD are phasing out traditional lithium-ion batteries. According to the company, the electric vehicle producers are choosing instead to use those made with LMFP cathode material.
Previously, the company had sent VSPC's cathode material to potential customers for testing. Lithium Australia hasn't reported on their findings.
Commentary from management
Lithium Australia's managing director Adrian Griffin said of the news:
(The company) has not only demonstrated its unprecedented ability to produce high-performance LMFP (the next generation of energy-storage material) but has done so on schedule… Lithium Australia continues to evaluate commercial production opportunities in the most rapidly expanding battery markets globally, with a view to shortening supply chains and reducing the carbon footprint of battery production.
Lithium Australia share price snapshot
Today's gains included, the Lithium Australia share price is now 100% higher than it was at the start of 2021.
It has also gained 140% since this time last year.
The company has a market capitalisation of around $99 million, with approximately 906 million shares outstanding.
