The IGO Ltd (ASX: IGO) share price is having a very positive end to the week on Friday.
At the time of writing, the battery materials producer’s shares are up 7% to $11.85.
This means the IGO share price has now climbed into positive territory in 2022.
Why is the IGO share price rising?
The catalyst for the rise in the IGO share price this morning has been the release of an announcement relating to the company’s lithium operations.
According to the release, the company has achieved the first and consistent production of battery grade lithium hydroxide from the Kwinana Lithium Hydroxide Refinery. Based on onsite laboratory tests, the refinery has successfully and consistently produced battery grade lithium hydroxide over several days.
Management notes that this represents an important milestone for the lithium joint venture between IGO (49%) and lithium giant Tianqi Lithium Corporation (51%).
What’s next?
It may not be too long until the company is generating revenue from this lithium hydroxide. The release explains that once product samples have been independently verified, the product qualification process with offtake customers will commence.
IGO’s Managing Director and CEO, Peter Bradford, commented:
We are delighted to announce this important achievement and we congratulate the joint venture team for their focus and professionalism through the progressive commissioning and trial production of Train 1 at Kwinana and the delivery of this important milestone.
Vertical integration into downstream processing is a key plank in IGO’s strategy and we are proud to be involved in the first production of lithium hydroxide in commercial quantities in Australia. The joint venture’s interest in both the upstream mining asset at Greenbushes and the downstream refinery at Kwinana is emerging as a globally significant, integrated lithium business.
The post IGO share price surges 7% higher on lithium update appeared first on The Motley Fool Australia.
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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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