Why the Strategic Elements (ASX:SOR) share price is soaring 13% higher

The Strategic Elements share price is leading the charge on the All Ords in 2021, up 233%. We look at what's driving the gains.

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The Strategic Elements Ltd (ASX: SOR) share price is off to the races again in morning trading today. Shares are currently up 13% after leaping 16% higher on open.

This is a great start, particularly on a morning where the All Ordinaries Index (ASX: XAO) is falling hard, down 2%.

Strategic Elements' gains come following the company's latest progress report on its novel battery ink technology.

hand on touch screen lit up by a share price chart moving higher

Image source: Getty Images

What did Strategic Elements report on its battery ink project?

In an announcement to the ASX this morning, Strategic Elements revealed another big step forward with its self-charging battery project.

The battery pack is a prototype with several connected battery ink cells. It uses moisture from the air to generate an output of over 4 volts for around 5 hours. The batteries can also generate electricity from the humidity from your skin surface.

Strategic Elements said that additional work would be done to test its battery ink cells. Testing with different loads and different humidity levels will be performed.

The project is being developed in collaboration with the University of New south Wales and CSIRO. The Federal Government has also given partial funding for the project.

The company reported that a patent application covering aspects of its work was filed yesterday, 27 January.

In a forward looking statement, Strategic Elements revealed the battery ink cells could potentially be made up to 4 times smaller while still generating 0.8V of electricity. The development of these smaller cells is expected to be conducted over the next 4 to 6 weeks.

In the next 6 to 8 weeks, the company also plans to develop a prototype of Battery Ink cells it can fabricate onto flexible textile material.

Words from the Managing Director

Commenting on the latest progress, Strategic Elements Managing Director Charles Murphy said:

We are obviously very encouraged with the milestones being achieved by UNSW and the team. In response that that we are adding in PhD material science expertise and developing a panel of industry specialists. The technology sits across two of the strongest 2021 investment sectors in batteries and environmental technologies and is a very good fit for our high-risk, high reward Pooled Development Fund Structure.

UNSW Professor Dewei Chu added, "Although still under development the battery ink is developing promisingly as an electrical generator battery technology."

Strategic Elements share price snapshot

Strategic Elements operates as a venture builder, generating projects by combining teams of leading scientists and innovators. The company operates as a registered Pooled Development Fund (PDF). Notably, investors in Strategic Elements do not pay capital gains taxes. This is compensation for the added risk of investing in small and medium sized companies under the Federal Government PDF program.

It's been a great New Year for investors in Strategic Elements to date.

With the 13% intraday gains taken on board, the Strategic Elements share price is up 233% since the opening bell on 4 January. Shares are up a whopping 906% over the past 12 months.

Motley Fool contributor Bernd Struben 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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