It's been a volatile day for the graphite developer's share price. After opening at 11 cents this morning, it soon dropped by 8%. It has since gained that back and is currently more than 33% higher than yesterday's close.

At the time of writing, shares in BlackEarth Minerals are trading at 16 cents each.

What did BlackEarth announce today?  

In this afternoon's announcement, BlackEarth revealed it and its supply partner LuxCarbon GmbH had joined the EBA, pledging to provide industry support to the Alliance and its members.

BlackEarth will also provide the EBA with samples of high-grade concentrate from its recently commenced Stage 2 pilot program to confirm its suitability for the electric vehicle market.  

The company says its association with the EBA will benefit it in further developing its graphite supply chain business strategy, supporting its downstream processing plant and fast tracking the development of its graphite deposit in Madagascar.

About the EBA

The EBA is an industry group that aims to develop the growing electric vehicle and battery markets in Europe. It's working to create a competitive, sustainable and inexpensive battery-making industry on the continent.

The goals of the EBA are to access sustainable raw materials for the production of batteries at a reasonable cost and to support both European battery making and new markets for batteries.

Other members of the EBA include Tesla, Ford, BMW, Bosch and Volvo Cars.

Commentary from management

BlackEarth managing director Tom Revy said that the company was encouraged by the EBA to join.

He commented:

Membership of the Alliance is a natural fit for our ambitions and the plans we have with our existing German based supply partner, LuxCarbon.

The team at BlackEarth are working toward the establishment of a downstream processing plant and we see the European market as a key destination for our range of products. Many of the existing Alliance members are already engaged with our partner in Europe and this provides us with enormous opportunities that are unique to BlackEarth.

BlackEarth Minerals share price snapshot

 The BlackEarth Minerals share price has risen by 200% year to date, and by more than 321% over the last 12 months.

The post Why is the BlackEarth Minerals (ASX:BEM) share price soaring 33%? appeared first on The Motley Fool Australia.

During early afternoon trade the graphite developer's shares are up 6.6% to 16 cents. The BlackEarth share price reached as high as 17 cents after the news broke.

What did BlackEarth announce today?

The BlackEarth share price is racing higher as investors appear upbeat about the company's prospects.

According to its release, BlackEarth advised it has commenced the second stage of a large pilot metallurgical test work program. Expected to run over the course of 3 months, the results of the program will be used in the DFS to finalise all processing engineering matters.

Under the test program, BlackEarth will use between 60 to 70 tonnes of Maniry graphite material. Once completed, the outcome will be applied to improve the Maniry flow sheet and provide final equipment specifications. In addition, the results are anticipated to deliver significant input into the project's final environmental and social impact assessment (ESIA).

BlackEarth also noted that substantial graphite concentrate will be produced, which will support in closing off-take and downstream arrangements.

The pilot test work program is predicted to be completed some time in the second quarter of 2021.

Comments from the managing director

BlackEarth Minerals managing director Tom Revy touched on the company's update, saying:

Over the past 12 months, BlackEarth has continued to progress the DFS and the Board is pleased with what has been accomplished to date. As part of this, the value of Stage 2 piloting cannot be under-estimated given the importance of the results to the Maniry development program and ultimately the potential value it can realise for shareholders.

About the BlackEarth share price

In the past 12 months, the BlackEarth share price has been a stellar performer, achieving gains of over 320%. The company's shares traded for just 2.1 cents in March last year during the COVID-19 rout. Since then, strong investor sentiment within the industry coupled with company developments have led its wild share price rise.

Earlier this month, its shares reached a 52-week high of 28 cents on the back of signing an important marketing agreement.

The post Why the BlackEarth (ASX:BEM) share price is racing 6% higher appeared first on The Motley Fool Australia.

Shares are soaring after BlackEarth announced a significant marketing agreement with a world-leading graphite supply group.

What agreement did BlackEarth Minerals make?

In an ASX release this morning, BlackEarth Minerals revealed it had signed an agreement with German-based Luxcarbon GmbH for the procurement, supply and marketing of graphite concentrate and downstream graphite products.

Luxcarbon is among Germany's top suppliers of graphite and carbon products, counting Volkswagen, Mercedes, Ford and major chemical corporations among its clients.

Following its memorandum of understanding (MOU) with Urbix Inc, BlackEarth will use this agreement to secure the supply of up to 25,000 tonnes of high-grade product to help Urbix complete its plant development.

The company reported this would remain in place as it fast-tracks its work on its own graphite assets in Madagascar. It plans to use these provide a regular supply for its future downstream graphite operations.

Part of the agreement enables BlackEarth to sell up to 25,000 mtpa of downstream products to the European market. The company points to a growing demand for its products from the growth of the electric vehicle battery market.

Commenting on the agreement, BlackEarth managing director Tom Revy said:

This agreement provides a number of great outcomes for BlackEarth. Firstly, it enables us to secure a supply of world class graphite concentrate that can be supplied to Urbix's operations in the USA and also our own downstream processing facility whilst we complete the development of our plants in Australia and Madagascar.

Secondly, Luxcarbon are leaders in the supply and understanding of downstream graphite products and this will assist us greatly.

The terms of the agreement run for 3 years. Luxcarbon and BlackEarth have the ability to extend the duration if they both consent.

BlackEarth share price snapshot

BlackEarth shares began trading on the ASX in January 2018. From there it was a choppy ride mostly downhill for shareholders until things took a big turnaround in December. On 22 December, the stock was trading for 2 cents per share. The current share price represents a 488% gain since then.

Year-to-date the BlackEarth share price is up 370%. By comparison, the All Ordinaries Index (ASX: XAO) is up 2.6% so far in 2021.

The post The Blackearth Minerals (ASX:BEM) share price is rocketing 150% today. Here's why appeared first on The Motley Fool Australia.