Shares of Calix Ltd (ASX: CXL) are worming their way higher on Tuesday and are now trading 5.86% higher from the open. At the time of writing, the Calix share price is $7.04. Earlier it soared to $7.22, its highest mark in the past five days of trading.
In wider market moves, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) has also spiked more than 1% into the green.
What's up with the Calix share price?
Investors might be bidding up the Calix share price in response to a company announcement this morning.
Calix advised that it and project partner Pilbara Minerals Ltd (ASX: PLS) have been awarded a $20 million grant from the Australian Government under the Modern Manufacturing Initiative (MMI).
This will be used to support the further development and demonstration of the proposed Mid-Stream Project at the Pilgangoora lithium project in Western Australia.
The release said: "Grant funding will be used as part of a joint venture (JV) to be entered into between Pilbara Minerals and Calix for the progression of a demonstration-scale chemicals facility at the Pilgangoora Project — with the aim of producing lithium salts for global distribution via an innovative midstream 'value-added' refining process."
Speaking on the announcement that is likely fuelling the Calix share price today, managing director Phil Hodgson said the company was "very grateful" for the $20 million grant. He added:
This world-first project aims to develop a low carbon process for lithium salt production into a rapidly growing market that is increasingly demanding more sustainable practices.
The Calix and Pilbara Minerals teams are working very well together on this joint development and we look forward to progressing this important technology.
What's next for Calix?
Both parties are reportedly hoping to finalise the JV agreement by "early Q3 2022", prompting a final investment decision in late 2022 or early 2023.
In the last 12 months, the Calix share price has spiked 184%. It has also gained 6% this year to date.
