Battery material producers such as Galaxy Resources Limited (ASX: GXY) and Syrah Resources Ltd (ASX: SYR) may have dropped notably lower on Tuesday, but that hasn't stopped the Clean TeQ Holdings Limited (ASX: CLQ) share price from hurtling higher.
The nickel, cobalt and scandium company's shares are up 16% to 32 cents in early afternoon trade, but were up as much as 20% at one stage.
Why is the Clean TeQ share price zooming higher?
Investors have been buying the company's shares in a hurry today after it provided an update on its wholly-owned Sunrise nickel, cobalt, and scandium project located in central New South Wales.
According to the release, the company has received numerous inbound enquiries from a range of parties in the electric vehicle supply chain in relation to both project level ownership, long-term offtake agreements, and other financing arrangements.
In light of this, the company has appointed Macquarie Group Ltd (ASX: MQG) subsidiary Macquarie Capital to run a partnering process. This will see the company consider divesting an interest of up to 50% of the Sunrise project, in combination with long-term offtake.
What is the Sunrise project?
The wholly-owned Sunrise nickel, cobalt, and scandium project is a globally significant nickel-cobalt-scandium resource with existing ore reserves that support a 40-plus year mine life and a first quartile cost position.
Once in production, Sunrise will be one of the world's largest integrated suppliers of high purity battery grade nickel sulphate and cobalt sulphate. These are the key raw materials in the production of cathodes for lithium-ion batteries. It will also provide one of the largest and most secure sources of cobalt supply outside of Africa.
The company's chief executive officer, Sam Riggall, was delighted with the appointment of Macquarie Capital.
He said: "Clean TeQ is delighted to be working with Macquarie Capital to finalise the funding for the Sunrise Battery Materials Complex. The Board and major shareholders of Clean TeQ are highly supportive of finding the right partner, be that a strategic customer or an operating miner, to develop this globally strategic asset. With approximately A$150 million invested by Clean TeQ in the project to date, a solid foundation has been built for the successful and rapid delivery of this project."
