Why the Lithium Energy (ASX:LEL) share price is up 40% in the last 2 days

The company’s shares have been on fire lately…

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The Lithium Energy Ltd (ASX: LEL) share price is pacing higher again today, up 40% in the last 2 days. This comes after the battery minerals company announced a positive update yesterday for the Solaroz Lithium Project.

At the time of writing, Lithium Energy shares are exchanging hands for 69 cents, up 15%.

What did Lithium Energy announce?

According to its release, Lithium Energy reported that the Solaroz Lithium Project Environmental Impact Assessment (EIA) is nearing completion. The Unit of Environmental Management or otherwise known as ‘Unidad de Gestion Ambiental Provincial Minera’ (UGAMP) of the Jujuy Province is currently reviewing the EIA.

The UGAMP has representatives across several different provincial agencies. They include the Environmental Management Agency, Environmental Policy Department, Water Resources, Industry and Commerce, Public Health. In addition, the UGAMP has non-government stakeholders along with the Mining Secretary, which is responsible for approving Mining EIA’s.

Lithium revealed that in late July, two public consultation meetings took place with the UGAMP, landowners and first nations representatives. The meetings were seen as a positive step in securing signoff for the EIA.

The next stage involves receiving any technical input from relevant stakeholders. This is expected to have a timeframe of roughly 2 weeks.

Should the EIA become approved, Lithium Energy will conduct an extensive work program consisting of geophysical surveys and drilling. The company is hoping to find lithium brines underneath Solaroz.

Lithium Energy share price snapshot

Located within South America’s ‘lithium triangle’ in northwest Argentina, the Solaroz Lithium Project comprises of 8 mineral tenements. In total, the area is approximately 12,000 hectares.

The company established a conceptual exploration target of 1.5 million tonnes to 8.7 million tonnes of Lithium Carbonate Equivalent (LCE). Unfortunately, there hasn’t been enough exploration activities to estimate a Mineral Resource.

The Lithium Energy share price has jumped more than 230% since coming onto the ASX boards in May 2021.

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Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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