The Lithium Australia NL (ASX: LIT) share price advanced today following the company's admission into the Global Battery Alliance.
At market close, the Lithium Australia shares price is fetching for 12 cents, up 6.36%. In comparison, the All Ordinaries Index (ASX: XAO) is sitting at 7,595 points, 0.9% higher.
Lithium Australia enters Global Battery Alliance club
Investors are driving Lithium Australia shares higher after the company announced it has advanced its ESG strategy. The term ESG refers to the environmental, social & corporate governance (ESG) which sets a standard for a company's operations.
In today's statement to the ASX, Lithium Australia advised it has joined the Global Battery Alliance. This brings together leading entities in the battery value chain such as manufacturers, governments, international organisations, NGO's and academics. All of which are committed to actively reducing emissions, and providing sustainable development for lithium batteries.
Lithium Australia will directly benefit from becoming a member, as it aims to achieve its own ESG objectives. This includes accelerating the deployment of batteries worldwide while lowering the environmental impact and negating barriers to a circular battery economy.
Becoming a start-up member of Global Battery Alliance allows participation in group meetings and engaging in specific workstreams.
The organisation notes, "By 2030, batteries could enable 30% of the required reductions in carbon emissions in the transport and power sectors and provide 600 million people with access to electricity, as well as create 10 million safe and sustainable jobs around the world. To realise this potential, the battery value chain will have to expand by 19 times over the next decade."
"Action is needed in the supply chain to establish sustainable market conditions and accelerate battery deployment in support of this vision."
Management commentary
Lithium Australia managing director, Adrian Griffin commented:
The Company's admission to the GBA is testament to the ESG values upon which it has built its business model. Both the Company and the GBA have a core objective: that of creating an ethical, sustainable and circular battery economy.
Pleasingly, Lithium Australia owns 90% of Envirostream Australia, which is the country's only mixed-battery recycler. The subsidiary will benefit directly from the membership, having access to experts and major industry participants in battery recycling globally.
In addition, Lithium Australia's 100% owned VSPC will also gain an advantage as a producer of advanced cathode powders for lithium-ion batteries.
About the Lithium Australia share price
Over the last 12 months, Lithium Australia shares have jumped by more than 120%, and are up almost 80% year-to-date. The Lithium Australia share price has moved sideways since March 2021, however.
Lithium Australia presides a market capitalisation of roughly $107 million, with approximately 911 million shares on its registry.
