This ASX battery metals share is rocketed 20% today. What’s going on?

A man in a suit stands before a large backdrop of a blue-lit globe as the man smiles and holds his hand to his chin as though thinking.A man in a suit stands before a large backdrop of a blue-lit globe as the man smiles and holds his hand to his chin as though thinking.

The S&P/ASX 200 Materials Index (ASX: XMJ) index may have suffered on the market today but one ASX battery metals share had a better day.

The Group 6 Metals Ltd (ASX: G6M) share price soared 20% to close trading at 21 cents today. In contrast, the ASX 200 Materials Index fell 2.38%.

Let’s take a look at why this ASX battery metals share could be having such a great day.

What’s happening at Group 6 Metals?

Group 6 Metals shareholders may be reacting to recent media coverage on the company. Group 6 revealed its tungsten mine is garnering interest from the United States. Tungsten is a critical rare metal with future application in anode materials in lithium-ion batteries.

Speaking to Four Corners, executive chairman Johann Jacobs said the company has had three meetings with the US embassy in 12 months. He added:

…and those discussions are continuing. At this stage, they don’t have any financial interest, but they certainly are very keen to see us progress and develop the mine because it’s another supply chain… from a friendly nation. 

The United States is taking interest amid China’s global dominance of the tungsten market, the ABC noted.

Group6 is planning to produce tungsten from the Dolphin Tungsten Mine on King Island, Tasmania. Construction at the mine commenced in late January. The company is redeveloping the mine and targeting first concentrate sales in the first quarter of 2023.

In a presentation to investors in May, the company said the mine is a “world-class quality deposit” that ranks better than its peers.

The company changed its ticker code on the ASX to G6M from King Island Scheelite Limited (ASX: KIS) in late November.

Share price snapshot

The Group 6 Metals share price exploded 45% year to date but it is down 4.55% in the past month.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed 5% in the year to date.

This ASX battery metals share has a market capitalisation of more than $132 million.

The post This ASX battery metals share is rocketed 20% today. What’s going on? appeared first on The Motley Fool Australia.

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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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