The Lithium Energy Ltd (ASX: LEL) share price is surging today on the back of a graphite project update.
The company's shares were trading at 81 cents apiece early today, a gain of almost 11%. They have since retreated to 76.5 cents, still up 4.79% on yesterday's closing price.
Let's take a look at what may be weighing on investors' minds today.
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What did the lithium miner announce?
The company provided a wide-ranging update on its drilling, test work, and manufacturing potential at the battery miner's Burke graphite project in Queensland.
Lithium Energy is a battery minerals explorer, also operating at the Solaroz lithium project in Argentina.
Test work to improve the production of battery-grade graphite is progressing nicely and high purity graphite concentrate from drill samples is being produced.
This graphite will be purified and tested by the CSIRO to help the company market the use of this graphite for lithium-ion batteries.
Further, Lithium Energy is planning a drilling expedition in the first quarter of 2022.
Drilling at the Burke tenement is aimed at upgrading the mineral resource to a higher standard. Doing so would help Lithium Energy explore the commercial potential of a new purified spherical graphite manufacturing operation. This production would tap into high-grade graphite from the Burke tenement as the feedstock.
The company is also planning to drill for graphite at the Corella tenement, located 150km south of the Burke tenement.
Lithium Energy is gauging interest from engineering companies to advance the planned manufacturing facility.
Lithium Energy share price snapshot
The Lithium Energy share price has surged 282% this year to date after the company joined the ASX in May.
In the past week, the company's shares have gained more than 8%.
The company has a market capitalisation of about $58 million based on its current share price.
