During afternoon trade, Hannans shares soared as high as 4.7 cents apiece — a 27% gain on their previous closing price. However, by the close, they had retreated to 4.2 cents, still a gain of 13.51%.

What did Hannans announce?

Investors were pushing up the Hannans share price following the company's entry into the lithium battery recycling sector.

Hannans advised it has satisfied all the conditions precedent from the binding MoU agreement signed in September. This gives the company rights to recover high-purity metals from scrap and spent lithium batteries.

Hannans will seek to commercialise its battery recycling technology in Nordic countries Norway, Sweden, Denmark, and Finland.

The Nordics are known for having one of the highest electric vehicle adoption rates in the world. To fuel this growth, the region has four massive giga factories that are either in the planning stages or being built.

Hannans envisions the volume of scrap and end-of-life lithium batteries will drive the lithium battery recycling sector. It's worth noting this waste contains significant nickel, cobalt, lithium, and manganese which are the company's bread and butter.

The recycling technology is considered safe, sustainable, and uses low energy and emits low carbon emissions compared to other technologies. Hannans noted that it will begin to earn an interest in the recycling projects by funding and managing certain activities.

Hannans share price summary

Having reached a multi-year high of 5.5 cents earlier this month, the Hannans share price retraced back. Its shares are hovering above a 500% gain for the last 12 months, and are up 750% for the current year.

Hannans commands a market capitalisation of roughly $117.28 billion, and has approximately 2.06 billion shares on issue.

The post Here's why the Hannans (ASX:HNR) share price shot 14% higher today appeared first on The Motley Fool Australia.

The company has previously signed a memorandum of understanding with Critical Metals' subsidiary, LiB Recycling.

Under the agreement, the pair will plan to form a joint venture to commercialise lithium-ion battery recycling technology in Europe's Nordic region.

Today, Hannans announced that the understanding's first precedent has been fulfilled, with Critical Metals' shareholders voting in favour of the partnership.

At the time of writing, the Hannans share price is 3 cents, 30.34% higher than its previous close.

Let's take a closer look at today's announcement from the battery metal exploration company-turned-battery recycler.

One step closer to battery recycling

The Hannans share price is surging on the back of news of its plan to retrieve battery metals by recycling lithium-ion batteries.

The company is hoping to enter into a joint venture with LiB Recycling to commercialise a battery recycling project in Norway, Sweden, Denmark, and Finland.

The memorandum of understanding between Hannans and LiB Recycling – the first step towards a joint venture – has passed its first hurdle.

There are now only 2 conditions on which the agreement is balancing on. Hannans believes the last conditions will be satisfied by 30 November.

LiB Recycling has exclusive rights to commercialise Neometals Ltd's (ASX: NMT) technology in the Nordic region. Neometals' technology can recover battery metals from spent lithium-ion batteries.

Under the joint venture, Hannans will earn its interest by funding and managing certain tasks and activities. These include funding the battery recycling project through to a final investment decision.

According to Hannans, the lithium-ion battery recycling technology has gone through pilot plant and validation test work programs, leaving it substantially derisked.

The company also states the Nordic region has the highest electric vehicle penetration rates in the world.

Additionally, Europe doesn't produce enough metals to meet its massive growth in the uptake of batteries.

Lastly, European battery and electric vehicle manufacturers must reuse metals to meet legal, social, and environmental obligations.

Hannans share price snapshot

2021 has been a big year for the Hannans share price.

Right now, it is 500% higher than it was at the start of this year. It has also gained 400% since this time last year.

The post Here's why the Hannans (ASX:HNR) share price is rocketing 30% today appeared first on The Motley Fool Australia.