Why is the IGO share price busting the benchmark on Friday?

The company's proposed battery material facility has found a home base.

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A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.

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Key points

  • The IGO share price is roaring 2% higher today to trade at $13.035 at the time of writing
  • Its gain comes on news the company has secured 30 hectares of state government-leased land to build its proposed Integrated Battery Material Facility 
  • IGO and partner Wyloo Metals are also in discussions with a global battery chemical manufacturer interested in joining in on the project 

The IGO Ltd (ASX: IGO) share price is besting the benchmark S&P/ASX 200 Index (ASX: XJO) on Friday.

It comes as the green metals miner reveals its secured land to build its proposed Integrated Battery Material Facility (IBM Facility).

It's also in discussions with a potential battery chemical partner. Finding an experienced partner is a key hurdle facing the project's final investment decision (FID).

Right now, the IGO share price is roaring 2.24% higher to trade at $13.035.

Let's take a closer look at the news driving the critical metals-focused company's stock higher today.

IGO share price gains on battery supply chain milestone

The IGO share price is outperforming on news the company has secured land from the government of Western Australia.

The win marks an important milestone in its plan to be vertically integrated into the battery supply chain.

The ASX 200 company hopes to develop the IBM Facility in conjunction with Wyloo Metals – a private entity owned by Fortescue Metals Group Limited (ASX: FMG) boss Andrew Forrest.

The project's development will see a downstream nickel refinery integrated with a plant producing high-value nickel dominant precursor cathode active material (PCAM).

IGO also revealed it and Wyloo Metals are in advanced discussions with a global battery chemical manufacturer interested in partnering on the project.

The proposed facility would be built in the Kwinana-Rockingham Strategic Industrial Area on 30 hectares of vacant state government-leased land.

A FID on the IBM Facility rests on finding a partner experienced in PCAM and a feasibility study – expected in mid-2024. It's also subject to other permitting and stakeholder approvals.

Commentary from management

IGO acting CEO Matt Dusci commented on the news driving the company's share price today, saying:

We are excited about securing this site at Kwinana … We strongly believe that by bringing the right partners together, we will deliver a fully optimised nickel supply chain delivering low-cost, low-carbon, responsibly produced battery chemicals for the global battery and electric vehicle industry, to be delivered through an integrated battery material facility here in Western Australia.

IGO share price snapshot

Sadly, today's surge hasn't been enough to boost the IGO share price into the longer-term green.

The stock is still 2% lower than it was at the start of 2023. It has also slumped 7% since this time last year.

For comparison, the ASX 200 has risen 5% year to date and has fallen 3% over the last 12 months.

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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