The Clean Teq Holdings Limited (ASX: CLQ) share price is flat today as the company announced its second quarterly report for the financial year.
Shares in the green materials company are trading at 30 cents at the time of writing, the same price level it was stting on at market open this morning.
Clean Teq is a Victorian company that aims to "empower the clean revolution" by providing specialty materials and clean solutions to a range of industries.
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What is driving the Clean Teq share price
In today's release, the company advised it continues to advance the development of its Sunrise battery materials complex in New South Wales. The company sees Sunrise as a potential beneficiary to the growing tailwinds surrounding electric vehicles.
Clean Teq has a range of works under way at the Sunrise plant to minimise the project restart time when funding is secured. To this tune, the company says the COVID-19 pandemic has presented difficult conditions for obtaining funding for the project.
However, engagement with the automotive and battery sectors for Sunrise remains ongoing. In particular, in the last quarter of 2020, Clean Teq saw "significant interest" from the automotive sector for its supply of both cobalt and nickel.
Also, during the quarter, the company completed the first three drill holes at its Phoenix Platinum zone in NSW. Despite the low grade of resource in the area, the mine remains "one of the largest platinum deposits in Australia". Platinum has many uses in modern society including in jewellery, electrics and medical/laboratory instruments.
In addition, the company's two new water treatment contracts in Australia and Oman also helped drive the Clean Teq share price this month.
Renewable energy push
Earlier this month, Clean Teq announced the completion of a study that confirmed the availability and cost of renewable energy to supply 100% of its external power for its Sunrise project. As such the proposal would completely eliminate one third of its total carbon emissions.
The study was undertaken in 2020 in partnership with AGL Energy Limited (ASX:AGL) to identify an alternative energy supply.
About the Clean Teq share price
With the company's recent capital raising, Clean Teq currently has a cash balance of $44 million.
Looking ahead, the company is considering a demerger of its water division to focus more on battery materials. It has started a formal review of a potential demerger which will provide a recommendation to shareholders in due course. The review will consider taxation, structuring and other regulatory implications.
Despite the challenging conditions of last year, the Clean Teq share price is currently trading 15.38% higher over the last 12 months. And it's outperforming the All Ordinaries Index (ASX: XAO) by 15%.
