This lithium battery materials share is up 44% in two weeks, what’s going on?

a woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.

a woman smiles as she checks her phone in one hand with a takeaway coffee in the other as she charges her electric vehicle at a charging station.

The Ecograf Ltd (ASX: EGR) share price had a sensational finish to the week.

This lithium battery materials company’s shares ended the day almost 27% higher at 40.5 cents.

This means the Ecograf share price is now up 44% in the space of two weeks.

Why is the Ecograf share price rocketing higher?

Investors appear to have been loading up on battery materials shares recently following some sharp declines in the previous months.

For example, the Ecograf share price is still down 43% since the start of the year despite this recent resurgence.

It has been a similar story for the Novonix share price. It is up 20% in the last couple of weeks but remains down 70% year to date.

What is Ecograf?

EcoGraf is in the process of building an integrated battery anode material business to produce high purity graphite products for the lithium-ion battery and advanced manufacturing markets.

A recent quarterly update reveals that over US$30 million has been invested to date to create two highly attractive, development ready graphite businesses.

The first new state-of-the-art EcoGraf processing facility in Western Australia will manufacture spherical graphite products for export to Asia, Europe and North America. It will provide customers with sustainably produced high performance battery anode material.

Additional battery graphite processing facilities are in planning for Europe, Asia and North America to support the global transition to clean, renewable energy and the rapid growth in demand for battery materials.

Judging by the Ecograf share price performance in recent weeks, it appears as though some investors believe the company is well-placed to benefit from the decarbonisation megatrend. Time will tell if that is the case.

The post This lithium battery materials share is up 44% in two weeks, what’s going on? 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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