Thirty three acres of land overseen by the US state of Alabama’s Tuscaloosa County Economic Development Authority (TCEDA) are set to house Volt Resources’ (ASX:VRC) graphite battery anode facility.
That’s if a letter of support in favour of Volt’s proposed facility from the TCEDA itself is any indication.
Volt reported on Wednesday the company has ‘identified’ a 33 acre site in its search for an industrial location to base the proposed build; the product of a “dialogue” with vendors.
The fact of its having chosen a location is less significant than what the company can now do – submit a fully fledged funding proposal at the US Department of Energy (DOE).
Volt Resources’ submission will come at the same time the US economy scrambles to satisfy newly introduced legislation, part of the Biden administration, obligating the establishment of a critical minerals supply chains in the United States.
It’s going to need that funding – Volt is a microcap at $20.6M.
However, should the company make it through the DOE process and should proponents from that agency deem the proposed Alabama site permissible, Volt could the recipient of a US$100M helping hand from the Feds.
Without it? Volt could have a hard time trying to make a spark – especially because investors have lost patience in recent years.
The highest Volt shares have gone in the last five years was 4cps in May of 2021 when it acquired a European battery materials business.
Since then the stock has ranged between 1c and 3c but roughly halfway through last year entered penny stock status, where today it remains.
However, its proximity to a meaningful chance it could be the recipient of a substantial funding boost from the US government could turn the story for this company around in a way you don’t often see with smaller players.
VRC shares last traded at 0.5cps.