Why the Lithium Australia (ASX:LIT) share price is rocketing 9%

New production news appears to be exciting investors…

Businessman taking off in rocket-fuelled office chair

Image source: Getty Images

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 Lithium Australia NL (ASX: LIT) share price is shooting straight for the moon – in an environmentally friendly way, of course.

The positive price movement comes as the company announces one of its subsidiaries is expanding its battery manufacturing capabilities.

At the time of writing, shares in the lithium technology company are trading for 12.5 cents – up 8.7%.

Let's take a closer look at today's news.

The Lithium Australia share price is blasting off

In a statement to the ASX, Lithium Australia says its subsidiary, VSPC Ltd, a developer and manufacturer of advanced cathode materials for lithium-ion batteries (LIBs), is now also producing commercial-quality lithium titanium oxide (LTO) anode powder.

Conventionally, LTO is prepared via a solid-state reaction, with titanium dioxide and lithium carbonate or lithium hydroxide as the raw materials. The materials are heated at temperatures above 800C for 12 to 24 hours to ensure high-phase purity. An LTO battery is more advantageous than other lithium-ion batteries because it is faster to charge than traditional batteries.

This news is clearly revving the engines of investors, at least judging by the rising Lithium Australia share price.

As well, Lithium Australia announced it will expand its research into other anode battery materials, including titanium niobium oxide and other niobium-based anode materials. These are often used in space and defence applications. VSPC is now developing an anode materials work program in conjunction with other organisations.

Management commentary

Adrian Griffin, Lithium Australia managing director, said

To achieve the performance desired for next-generation LIBs, improved anodes are also required. VSPC's patented technologies are applicable to the production of both anode and cathode materials. Currently, VSPC produces the world's highest performing LFP cathode powder and is among only a handful of companies capable of producing high-energy-density LMFP [lithium manganese ferro phosphate].

Market demand for advanced nickel and cobalt-free batteries puts VSPC in a unique position to deliver precursors that meet more exacting performance requirements. VSPC's successful production of high-performance LTO is an Australian first, as well as a global necessity.

Lithium Australia share price snapshot

Over the past 12 months, the Lithium Australia share price has increased 150%. Year-to-date, shares in the company are up 108%.

Its 52-week high is 21 cents per share and its 52-week low is 4.8 cents per share. Lithium Australia has a market capitalisation of approximately $125 million.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Miner holding cash which represents dividends.
Dividend Investing

Invested $8,000 in Fortescue shares 5 years ago? Guess how much passive income you've banked!

Fortescue is popular among passive income investors for paying two fully franked dividends per year, even during COVID.

Read more »

Miner looking at a tablet.
Resources Shares

BHP shares are up 9% in a month. Are they still good value?

Is Australia’s largest miner a big opportunity?

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »