The Hannans Ltd (ASX: HNR) share price roared to life on Tuesday. This comes after the exploration company announced an update on the memorandum of understanding (MoU) with Critical Metals Ltd.
During afternoon trade, Hannans shares soared as high as 4.7 cents apiece — a 27% gain on their previous closing price. However, by the close, they had retreated to 4.2 cents, still a gain of 13.51%.
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What did Hannans announce?
Investors were pushing up the Hannans share price following the company's entry into the lithium battery recycling sector.
Hannans advised it has satisfied all the conditions precedent from the binding MoU agreement signed in September. This gives the company rights to recover high-purity metals from scrap and spent lithium batteries.
Hannans will seek to commercialise its battery recycling technology in Nordic countries Norway, Sweden, Denmark, and Finland.
The Nordics are known for having one of the highest electric vehicle adoption rates in the world. To fuel this growth, the region has four massive giga factories that are either in the planning stages or being built.
Hannans envisions the volume of scrap and end-of-life lithium batteries will drive the lithium battery recycling sector. It's worth noting this waste contains significant nickel, cobalt, lithium, and manganese which are the company's bread and butter.
The recycling technology is considered safe, sustainable, and uses low energy and emits low carbon emissions compared to other technologies. Hannans noted that it will begin to earn an interest in the recycling projects by funding and managing certain activities.
Hannans share price summary
Having reached a multi-year high of 5.5 cents earlier this month, the Hannans share price retraced back. Its shares are hovering above a 500% gain for the last 12 months, and are up 750% for the current year.
Hannans commands a market capitalisation of roughly $117.28 billion, and has approximately 2.06 billion shares on issue.
