Here’s why the Anson Resources (ASX:ASN) share price has shot up 34% today

Anson Resources’ (ASX: ASN) share price is soaring today after it announced its lithium materials received successful performance reviews.

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The Anson Resources (ASX: ASN) share price is soaring today after it announced its lithium materials received successful performance reviews.

Tests on the company’s lithium products found it matched or exceeded the quality of those currently used in high-performance lithium-ion batteries.

At the time of writing, Anson Resources’ share price is 89 cents, up from Friday’s closing price of 69 cents.

More about today’s announcement

This morning’s announcement from Anson proclaimed the commercial viability of its raw battery materials.

Both the company’s lithium hydroxide and its lithium carbonate returned favourable market comparisons.

The results from Anson’s lithium carbonate were most favourable. It was found to have 99.9% purity – exceeding that of current commercial battery grade lithium-ion.

The company’s lithium hydroxide was shown to demonstrate similar performance to existing commercial products.

The products involved in the tests were extracted from Anson’s flagship Paradox Brine Project, located in a unique salt brine resource in Utah.

The tests were conducted by battery testing equipment makers Novonix Limited (ASX: NVT). Novonix states it provides the world’s most accurate battery testing services. Its customers include Honda, Dyson, Panasonic, and Bosch.

The positive findings have encouraged further testing. Novonix is set to continue tests with larger bulk samples, including conducting hundreds of charge and discharge cycles. Final results are expected to be available in the second quarter of 2021.

Commentary from management

Anson’s Executive Chairman and CEO Bruce Richardson said the results are “truly exciting” for the company.

This ongoing test work with Novonix is an important step in the commercial development of the Paradox Project, and will provide battery makers and potential off-take partners with considerable confidence in our ability to produce a high purity product. I look forward to providing further updates on test work and other importance work streams underway at Paradox in due course.

Anson Resources share price snapshot

The Anson share price is currently trading 200% higher than this time last year and is up 131% year to date.

The company has a market capitalisation of over $59 million with approximately 893 million shares outstanding.

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Motley Fool contributor Brooke Cooper 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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