Elevra Lithium Ltd (ASX: ELV) shares are in the spotlight on Monday.
In morning trade, the ASX lithium share is up by 5% to $10.04.
This compares to a solid performance from the ASX 200 index, which is up 0.5% at the time of writing.
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Why is this ASX lithium share getting a lot of attention?
Investors have been buying the lithium miner's shares following the release of a big update on its North American Lithium (NAL) operation.
According to the release, the ASX lithium share has reached a milestone in the expansion of the NAL operation with the official groundbreaking of the NAL Expansion Project.
It notes that the groundbreaking follows the successful completion of its May capital raise, which fully funded the NAL Expansion and strengthened its balance sheet to support execution of its staged growth strategy.
As part of ongoing project execution, equipment for the expansion has been ordered to enable the planned development timeline and reduce schedule risk.
This certainly could be worth the hard work. The company highlights that upon completion in mid 2027, Stage 1 of the NAL Expansion is expected to deliver a 15% to 20% increase in annual spodumene concentrate production capacity.
Importantly, it is also expected to result in a reduction in unit operating costs through improved scale and efficiency.
Furthermore, management believes that as North America seeks to strengthen domestic battery materials supply to reduce reliance on external sources, the NAL expansion will help by delivering increased supply of traceable and transparent lithium to the rapidly growing electric vehicle and energy storage markets.
Management commentary
The ASX lithium share's managing director and CEO, Lucas Dow, was pleased with the news. He commented:
The groundbreaking of the NAL Expansion marks a milestone for Elevra and reflects the progress we have made since announcing our staged expansion strategy. With funding secured and equipment orders being placed, we are focused on disciplined execution to deliver Stage 1. This expansion will increase production capacity and further strengthen NAL's position as a strategically important source of lithium supply in North America.
Elevra Lithium's shares have been on fire over the past 12 months. Following today's move, the company's shares are now up almost 350% since this time last year.
That's despite its shares trading almost 30% below their 52-week high of $14.06.
