Magnis Energy (ASX:MNS) share price is up 18% on Tuesday

asx share price growth represented by cartoon man flexing biceps in front of charged battery

Shares in lithium-ion battery manufacturer Magnis Energy Technologies Ltd (ASX: MNS) finished the day up 18.48% and closed the session at 54.5 cents.

Magnis shares were on the upward trajectory today despite there being no market-sensitive information for the company.

With that in mind, let’s take a closer look at what’s fuelling Magnis Energy shares lately.

What’s up with Magnis Energy shares today?

The Magnis Energy share price has been gaining ground since the company released a project update late last month.

Magnis advised that its 60% owned venture Imperium3 New York had received approval for an Aquifer Permit.

This is the crucial last step in the approval process for Imperium3, a lithium-ion battery plant located in New York.

As a result of the approval, the plant is now fully funded to begin commercial production in the lithium-ion battery cell manufacturing market with a scale of up to 1.8 GWh.

The release of Magnis’ quarterly activities report for the period ending 30 September 2021 also sent shares higher when the company presented it last week.

In its report, the company advised that Imperium3 “as of end of September is 33% complete, and has completed several milestones” on its quest to production.

It also announced further binding offtakes with its subsidiaries – including Imperium3 – which “include an agreement with Anglian Omega subsidiary Omega Seiki, producer of electric three-wheelers in India” alongside a US government supplier.

Magnis also expects to see fully-automated production at the Imperium3 site by 1H 2022 after phasing out its “semi-automated process” by the end of this calender year.

Aside from this, the spot price of lithium has also rallied once more since we rolled over from October into November.

In the last week or so, the price of lithium has climbed a further 6.4%, or A$2,398/tonne, to reach another all-time high of A$40,156/tonne.

This uplift in lithium prices bodes well for the Magnis Energy share price given Magnis is an ASX resource share that produces the commodity.

As such, it is considered a price taker with a share price that can and does fluctuate with volatility in the broader commodity and lithium markets.

Lithium has made another upward move over the past week, rapidly accelerating a further A$1,460/tonne.

With this in mind, and in the absence of any other price-sensitive information, it stands to reason that Magnis Energy’s share price is faring well on the back of this momentum in the battery metal and the company’s recent trading updates.

Magnis Energy share price snapshot

The Magnis Energy share price has posted outsized returns over the past 12 months of 194%, after rallying 175% this year to date.

These returns are a galaxy ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s gain of around 23% in that time.

The post Magnis Energy (ASX:MNS) share price is up 18% on Tuesday appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 Bruce Jackson.

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