Anteotech Ltd (ASX: ADO) shares are rocketing on Friday morning.
At the time of writing, the small cap ASX stock is up 42% to 3.7 cents.
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Why is this small cap ASX stock rocketing?
Investors have been fighting to get hold of the clean energy solutions company's shares this morning following the release of a follow up announcement.
On Tuesday, Anteotech announced that it has received the first commercial order for its proprietary Ultranode battery anode technology.
Ultranode is the small cap ASX stock's proprietary ultra-high silicon anode design currently containing 70% silicon. It is constructed using commercially available low-cost silicon as the active material (instead of graphite) and is enabled by AnteoTech's technologies to offer a high performance and sustainable option for lithium-ion batteries.
The company's initial announcement revealed that the $40,000 purchase order came from a European electric vehicle (EV) manufacturer that it referred to as EV1. This was for an initial quantity of Ultranode for testing and evaluation over the coming months.
The small cap ASX stock's CEO, David Radford, commented:
We are pleased to expand our relationship with EV1 and support not only their current battery optimisation programme using Anteo X, but their future battery vision of increased silicon content anodes, which we believe only our Ultranode can offer them.
The anode that is being purchased contains 70% silicon which is significantly higher than the anode currently being evaluated which has 10% silicon active material. This new commercial sale and evaluation will take place of the coming months and deepen our potential future engagement with this leading EV manufacturer.
EV1 unveiled
As we have seen in the past, the Australian stock exchange operator doesn't like it when announcements don't reveal the name of customers.
In light of this, the company's shares were put in a trading halt while it prepared to respond to an ASX query. In response, the small cap ASX stock said:
The ASX has advised the Company that under Listing Rule 3.1 the counterparty referred to as EV1 must be identified.
The Company advises that: the counterparty, referred to as "EV1" in the Announcement, is Mercedes-Benz AG of Waiblingen, Germany, part of Mercedes-Benz Group AG (Mercedes-Benz) it has previously taken all efforts to protect the confidentiality of Mercedes Benz as "EV1" due to the stage of commercial relationship and the confidential nature of the work being undertaken.
Investors appear excited that the auto giant is testing its technology. Though, as we saw with Brainchip Holdings Ltd (ASX: BRN) and Mercedes-Benz previously, it is worth remembering that there's no guarantee that this will lead to anything meaningful in the future.
