Why is the Argosy Minerals share price jumping 15% today?

This lithium share is catching the eye on Wednesday. But why?

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The Argosy Minerals Limited (ASX: AGY) share price is having a strong session.

At one stage this morning, the lithium developer's shares were up as much as 15% to 20.2 cents.

Its shares have pulled back a touch since then but remain up 7% to 18.7 cents currently.

A businessman leaps in the air outside a city building in the CBD.

Image source: Getty Images

Why is the Argosy Minerals share price jumping?

Investors have been buying the company's shares for a couple of reasons. The first is another strong showing in the battery materials industry, which has seen most lithium shares recording decent gains today.

Another reason has been the release of an update on the Rincon Lithium Project in Argentina, which reveals that operational works at the 2,000tpa lithium carbonate facility are progressing.

According to the release, performance testing works are being conducted within the primary solids filtration circuit to improve filtration rates. In addition, specialist filtration consultants have been engaged to improve operational performance.

Positively, all chemical process technology reviews, validation, and verification works have been successfully completed. Management notes that this confirms the company's capability to produce battery quality lithium carbonate product, with average product quality achieved up to 99.9% to date.

In addition, the company advised that it is making progress with its plan to expand the operation to 10,000tpa in the future.

Argosy Minerals' managing director, Jerko Zuvela, commented:

The Company is prioritising works to achieve continuous production operations at our 2,000tpa lithium carbonate operation. In addition, significant progress is being made with the pre-development works for the 10,000tpa operation expansion. The Company is working toward finalising upcoming significant milestones that will support Argosy's ambitions and near-term growth phase to fully develop the Rincon Lithium Project.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

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