In morning trade, the battery materials and technology company's shares are down 0.5% to 93 cents.

What's going on with Novonix shares?

Novonix shares are falling today after broad market weakness appeared to offset the release of an announcement.

That announcement reveals that Novonix has signed an agreement with Lithium Energy Ltd (ASX: LEL) to merge their adjoining Queensland Graphite Assets into a spin-out company through an initial public offering (IPO).

The spin-out will be known as Axon Graphite Limited and will be a dedicated ASX-listed vertically-integrated mine to battery anode material (BAM) product manufacturing company.

The release highlights that Novonix's Mt Dromedary Graphite Project is directly adjoining to Lithium Energy's Burke Graphite Project, and by merging the two it will create a substantial, world class inventory of high-grade natural graphite.

It also notes that the combination of the two adjoining high grade graphite deposits creates the potential for significant operational synergies and economies of scale.

IPO details

Axon Graphite plans to raise $20 million through the IPO, with a minimum subscription of $15 million and oversubscriptions of up to $5 million at an issue price of $0.20 per share. Eligible Lithium Energy and Novonix shareholders will be entitled to participate in a pro-rata priority offer.

If everything goes to plan, Lithium Energy and Novonix will each hold a 25% cornerstone equity holding in Axon Graphite.

Management commentary

Novonix's CEO, Dr Chris Burns, believes the merger and IPO will highlight the value of its graphite assets. He said:

The growth opportunity in the electric vehicle and energy storage systems battery markets for anode materials and high-grade graphite products is significant over the next decade. We believe the combination of the Mt Dromedary and Burke assets will enhance the scale and economics of these resources and provide the focus for the development of a substantial natural graphite mine and business.

We believe a stand-alone vehicle provides the opportunity to attract new development capital to enable the development of the resource and production of highly refined grade natural graphite for EVs and ESS. It will also highlight the value of these assets for NOVONIX shareholders.

This sentiment was echoed by Lithium Energy's executive chair, William Johnson. He adds:

The consolidation of the adjacent high quality Burke and Mr Dromedary graphite deposits will create a world-class inventory of high-grade graphite to support plans to develop an Australian-based, vertically integrated battery anode material (BAM) business. We expect significant operational synergies and economies of scale will be gained from the consolidation of these adjacent graphite deposits.

The prospectus for the Axon Graphite IPO is expected to be lodged within the next 6 to 8 weeks.

The post Novonix shares fall despite Lithium Energy merger and IPO plans appeared first on The Motley Fool Australia.

Four ASX shares that have not let that hold them back are listed below. Here's why they are rising:

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat share price is up 3% to $42.35. Investors have been buying the gaming technology company's shares after brokers responded positively to an analyst briefing. As well as confirming that it was performing in line with expectations, the company spoke very positively about the launch of its NFL poker machine offering.

Lithium Energy Ltd (ASX: LEL)

The Lithium Energy share price is up almost 6% to 63.5 cents. This morning, this lithium explorer released a drilling update from its flagship Solaroz Lithium Brine Project in Argentina. Management revealed the highest lithium grade to date from the upper aquifer at Solaroz has been encountered in Drillhole 7 at the northern Payo 1 concession.

Sims Ltd (ASX: SGM)

The Sims share price is up 1% to $13.94. This follows news that the company has signed an agreement to sell its 50% shareholding of international bioenergy and methane abatement company, LMS Energy, to Pacific Equity Partners. The transaction values Sims's 50% shareholding in LMS Energy at A$272.1 million.

Tuas Ltd (ASX: TUA)

The Tuas share price is up a further 2.5% to $2.15. Investors have been buying Tuas' shares this week following the release of its FY 2023 results. The Singapore-based telco reported a 50% year on year increase in revenue to $86.1 million and an improvement in its net loss. It also revealed plans to begin rolling out its own fibre broadband offering in the country in FY 2024.

The post Why Aristocrat, Lithium Energy, Sims, and Tuas shares are rising today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

IGO Ltd (ASX: IGO)

The IGO share price is up over 2% to $14.59. This follows news that its non-executive chair has been topping up his position. Michael Nossal picked up 20,000 IGO shares through an on-market trade on Friday, bringing his holding to 75,000 shares. The chair paid a total of almost $280,000 for the parcel of shares.

Iress Ltd (ASX: IRE)

The Iress share price is up over 2% to $6.48. This also appears to have been driven by some insider buying. The financial technology company's non-executive director, Michael Dwyer AM, bought 2,000 shares on-market on Monday for $6.40 per share. The Iress share price is down 35% since this time last month.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is up 3% to $1.06. Yet again, this may have been driven by insider buying. Judo revealed that its director, David Hornery, bought 10,000 shares on-market last week. This is one of a number of insider purchases in recent sessions. One of those saw its CEO pick up over 1 million shares on-market.

Lithium Energy Ltd (ASX: LEL)

The Lithium Energy share price is up 19% to 65 cents. Investors have been buying this lithium developer's shares after it released an update on the progress of the scoping study undertaken on its flagship Solaroz Lithium Brine Project in Argentina. Management also advised that it has been approached by multiple, major third parties active in the electric vehicle battery sector seeking strategic partnerships or investment opportunities.

The post Why IGO, Iress, Judo Capital, and Lithium Energy shares are charging higher appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are rising:

Iluka Resources Limited (ASX: ILU)

The Iluka share price is up over 2% to $11.67. This may have been driven by a broker note out of Goldman Sachs this morning. Its analysts remain very bullish on the mineral sands company and have reiterated their conviction buy rating with a $13.70 price target on its shares.

Lithium Energy Ltd (ASX: LEL)

The Lithium Energy share price is up 3% to 91.5 cents. This follows news that this lithium developer has signed a binding agreement with Lanshen to construct a battery grade lithium plant capable of producing 3,000 tonnes of lithium carbonate per annum at the 90% owned Lithium Brine Project. Lanshen is a leading provider of direct lithium extraction (DLE) technology and plant manufacturing, with industrial-scale commercial DLE plants currently in operation.

Talga Group Ltd (ASX: TLG)

The Talga share price is up 6% to $1.37. Investors have been buying this graphite share on Tuesday after it was revealed that the European Investment Bank (EIB) board has approved 150 million euros in senior debt funding. This will be used to underpin the development of Talga's Vittangi Anode Project in Sweden.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up almost 2.5% to $36.36. This morning, Woodside revealed that its board has approved the development of the large, high-quality Trion resource in Mexico. The total capital expenditure is expected to be US$7.2 billion, with Woodside's share coming to US$4.8 billion. Management sees scope for production of 100,000 barrels per day from 2028.

The post Why Iluka, Lithium Energy, Talga, and Woodside shares are charging higher appeared first on The Motley Fool Australia.

Let's take a look and see what's getting investors excited today:

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price is up 9% to $1.17. This morning, this Mali-based lithium developer announced a substantial increase to the mineral resource estimate (MRE) at its Goulamina Lithium Project.

Management now estimates that the project has an MRE of 211 Mt at a grade of 1.37% Li2O. It believes this highlights Goulamina's status as a world-class lithium pegmatite project. It is also now the fifth-largest global spodumene deposit.

Leo Lithium managing director, Simon Hay, commented:

We are excited to report a very significant resource upgrade which confirms the outstanding scale, high-grade nature, and further growth potential of the Goulamina Project. An increase at Goulamina of 68.6 Mt from a very moderate drilling campaign, is a fantastic outcome. Furthermore, there is scope for additional growth as the deposit remains open at depth and along strike, creating new drilling targets for the geology team.

Lithium Energy Ltd (ASX: LEL)

The Lithium Energy share price was up 9% to 97 cents this morning before easing back a touch.

Investors have been buying this ASX lithium share after it announced a binding agreement with Lanshen to construct a battery grade lithium plant capable of producing 3,000 tonnes of lithium carbonate per annum at the 90% owned Solaroz Lithium Brine Project.

Lanshen is a leading provider of direct lithium extraction (DLE) technology and plant manufacturing, with industrial-scale commercial DLE plants currently in operation.

Commissioning is targeted for the second half of calendar year 2024, subject to receipt of all local approvals and permits. Lanshen will fund the engineering and design, construction, transportation, assembly, commissioning and initial operation of the plant.

Lithium Energy's Executive Chairman, William Johnson, said:

This partnership with one of the world's leading providers of DLE technology is a tremendously exciting initiative undertaken by the Company. Whilst the location and size of the Solaroz Project as a whole is considered highly favourable for traditional pond evaporation (as used by neighbours Allkem and Lithium Americas), sorbent-based DLE technology offers a number of potential significant commercial and environmental benefits.

The post 2 ASX lithium shares surging 9% on big news appeared first on The Motley Fool Australia.

The project is located in Argentina, right next door to Allkem Ltd (ASX: AKE)'s flagship lithium facility, Olaroz.

Lithium Energy chair William Johnson dubbed the S&P/ASX 200 Index (ASX: XJO) giant's recently-announced mega-merger plan:

A clear endorsement of our strategy to rapidly accelerate the development of Solaroz.

The Lithium Energy share price leapt to trade at $1.065 earlier today, marking an 11% jump on its previous closing price. It has since handed back all of that gain, and then some.

Right now, the stock is down 2.6%, trading at 93.5 cents.

Let's take a closer look at what's going right for the $58 million lithium hopeful on Monday.

Tiny ASX lithium stock pops then drops on "outstanding" find

A drilling program at Solaroz has been front of mind for fans of Lithium Energy shares lately. The company announced drilling had extended massive intersections of conductive brines at the project on Friday. Today, assays have confirmed the find.

The fourth and fifth drill holes completed at the project have identified conductive brines at depth with excellent lithium grades across massive intersections.

The fourth hole was found to host a total 473.5 metre intersection of lithium-rich brines, with concentrations of up to 508 milligrams of lithium per litre to date.

Meanwhile, the fifth hole saw its intersections of conductive brine extended to 489 metres, with an increase in lithium brine concentration of up to 495 milligrams per litre.

Johnson said drilling at the project "continues to deliver outstanding intersections of lithium rich brines", continuing:

These drilling results continue to demonstrate the potential for Solaroz to support a world class resource of lithium and with three rigs soon to be operating concurrently, we are excited to be rapidly advancing towards defining our maiden JORC resource at Solaroz.

Lithium Energy share price snapshot

This year has been good to the ASX lithium stock so far.

The Lithium Energy share price has gained 26% since the start of 2023. Though, it's 19% lower than it was this time last year.

For comparison, the benchmark All Ordinaries Index (ASX: XAO) has gained 4% year to date and 1% over the last 12 months.

The post Tiny lithium stock uncovers 'outstanding' find next-door to ASX 200 fave appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are charging higher:

Appen Ltd (ASX: APX)

The Appen share price is up 4% to $2.66. This may have been driven by optimism over the quarterly update from Meta Platforms. Given that the Facebook owner is one of Appen's largest customers, its return to form could be good news for the artificial intelligence data services company.

Janus Henderson Group PLC (ASX: JHG)

The Janus Henderson share price is up 13% to $41.60. This follows the release of the fund manager's fourth quarter update. Janus Henderson's non-GAAP earnings per share of 61 US cents was 20 US cents ahead of consensus estimates. The company's revenue also came in almost US$45 million higher than expectations at US$515.2 million.

Lithium Energy Ltd (ASX: LEL)

The Lithium Energy share price is up 7% to 89 cents. Investors have been snapping up this battery materials explorer's shares following the release of an update on the Burke Graphite Project. That update reveals that assays have confirmed the project to be one of the world's highest-grade deposits.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle share price is up 11% to $10.40. This may have been driven by a broker note out of Morgans this morning. Although a touch underwhelmed with the investment management company's half year results, it believes the selloff has created a good entry point for investors. As a result, the broker has upgraded Pinnacle's shares to an add rating with a $10.75 price target.

The post Why Appen, Janus Henderson, Lithium Energy, and Pinnacle shares are charging higher appeared first on The Motley Fool Australia.

Assays from the company's Burke Graphite Project have confirmed its one of the world's highest-grade deposits.

The Lithium Energy share price has leapt 9.04% to trade at 90.5 cents on the back of the announcement.

Let's take a closer look at the latest from the ASX lithium and graphite developer.

ASX lithium stock soars on graphite find

Lithium Energy is having a great Friday on the ASX, as its share price soars on news of its graphite project – previously found to be capable of producing battery-grade product.

Assay results from seven of 29 holes drilled at the outback Queensland project have now been received, showing intercepts of more than 20% total graphitic carbon. The company's release states:

These grades are exceptionally high when compared with most other known graphite deposits globally.

Lithium Energy is also moving to begin assessing a potential purified spherical graphite anode manufacturing facility in Australia. Such a facility could use Burke graphite as feedstock.

Assays from the remaining 22 holes completed at the project are pending. Meanwhile, the company is gearing up to kick off drilling 150 kilometres away.

Around 2,000 metres of reverse circulation drilling and 200 metres of diamond drilling are planned for its Corella Tenement in the coming months.

Beyond graphite, the company has a 90% interest in Argentina's Solaroz Lithium Project.

It announced it had encountered significant intersections of highly conductive brines in the lithium project's northern section earlier this week.

Lithium Energy share price snapshot

The Lithium Energy share price has had a great start to 2023 on the ASX. It has gained around 26% so far this year. Though, that still leaves it 6% lower than it was this time last year.

The company currently boasts a market capitalisation of around $56 million.

The post Why did this ASX lithium share just rocket 9%? appeared first on The Motley Fool Australia.

In morning trade, the lithium explorer's shares are up 18% to $1.32.

At one stage, the Lithium Energy share price was up as much as 27% to $1.42.

Why is the Lithium Energy share price storming higher?

The catalyst for the rise in the Lithium Energy share price today has been the release of very positive drilling results.

In fact, the company believes the first hole of the maiden 10-hole drilling programme has confirmed a "major new lithium discovery" at the Solaroz Lithium Brine Project in the Lithium Triangle in Argentina. This project is in close proximity to one operated by lithium giant Allkem Ltd (ASX: AKE).

According to the release, significant levels of lithium brine concentrations in excess of 400 mg/l were hosted in the porous sandstones encountered between ~55 to ~228 metres depth in the first drillhole at the project.

Management advised that it is highly encouraged by these early assay results. It highlights that the significant lithium concentrations and low Mg/Li ratios are positive in relation to future potential processing options.

Drilling is now advancing in the first hole to test this primary target beneath a thick mudstone unit.

Significant resource potential

Lithium Energy's executive chairman, William Johnson, commented:

To confirm the discovery of high concentrations of lithium in the brines in the upper aquifer of our first drill hole at Solaroz is a watershed moment for Lithium Energy. It further confirms the potential for the Solaroz Project to host a significant resource of lithium brines in what is probably the best location globally to have a lithium discovery.

With assay results showing that lithium concentrations in this first hole increase at depth, the Company is now looking forward to assay results from sampling the target lower aquifer, as drilling continues to its target depth of 400 metres.

The post Lithium Energy share price surges 27% on 'major' discovery appeared first on The Motley Fool Australia.

Lithium Energy shares are currently trading at $1.24, a 3.5% fall. However, in earlier trade Lithium Energy shares tumbled 8.56% before pulling back. For perspective, the S&P/ASX 200 Materials Index is down 2% today.

Let's take a look at what could be impacting the Lithium Energy share price today.

What's going on?

Lithium Energy is a battery minerals company exploring lithium and graphite. This includes the Solaroz Lithium Project in Argentina, and the Burke Graphite Project in Queensland.

The Lithium Energy share price is down today, but it is not alone among ASX lithium shares. The Core Lithium Ltd (ASX: CXO) share price is down 5.18%, while Allkem Ltd (ASX: AKE) is falling 3.7%. Meanwhile, the Pilbara Minerals Ltd (ASX: PLS) share price is sliding 2.67%.

This follows a tough night on Wall Street in the USA for higher risk shares. Multiple lithium giants had a rough day on the New York Stock Exchange.

For example, Lithium Americas Corp (NYSE: LAC) fell 4% overnight, while Sociedad Quimica y Minera de Chile (NYSE: SQM) tumbled 7.91% and Albemarle Corporation (NYSE: ALB) fell 6.49%.

Sociedad Quimica y Minera de Chile advised it will need to spend $1.5 billion to cut its brine extraction in half by 2030, as my Foolish colleague James reported this morning.

Yesterday, Lithium Energy announced it had completed a $15 million capital raise. This will fund a ramp-up of drilling at the company's Solaroz Lithium Brine Project.

Drilling is underway at the project. Fifteen million shares were issued at $1 per share. Lithium Energy shares fell 4% in early morning trade yesterday, before recovering and finishing the day 7.98% ahead.

Share price snapshot

The Lithium Energy share price has soared 116% in the past year, while it is rising 33% year to date.

For perspective, the ASX 200 Materials Index has slid 3% in the past year.

Lithium Energy has a market capitalisation of nearly $56 million based on the current share price.

The post Why is the Lithium Energy share price sliding today? appeared first on The Motley Fool Australia.