Lithium Universe (ASX:LU7) has popped +41.7% this morning after acquiring global rights to a patented photovoltaic solar panel recycling technology.
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The tech in question, Microwave Joule Heating Technology, utilises microwave technology to selectively heat silicon, which softens the EVA encapsulant in solar panels to allow for easier delamination and material recovery.
LU7 got its mitts on the flashy new solar panel technology by buying up 100% of the share capital in Macquarie University’s New Age Minerals enterprise.
Cost wasn’t disclosed, though LU7 will soon raise $1.7 million through a placement.
The company’s chairman, Iggy Tan, said everyone involved was “thrilled” to get the deal over the line, especially because they believe “the need for effective PV recycling has never been greater… with only 15% of panels recycled.”
It all looks like a promising solution in LU7’s eyes – solar panel waste is clogging up landfills, and critical metals like silver, silicon, gallium, and indium are being left to rot; bad news when it comes to resource depletion and environmental issues alike.
“Microwave technology offers a promising solution to these challenges, enabling higher recovery rates and more sustainable recycling processes,” Mr Tan explained.
The markets seem to be in full agreement that it’s all very “promising” – as noted, the company’s value popped as much as 80% to 90% in early Wednesday trade, though it has pulled back to just +41.7% up, at time of writing.
Right now, LU7 shares have been fetching 0.85 cents on the morning’s big hike.
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Looking at the tea leaves, some of the Wednesday excitement does make sense to this HotCopper writer: This acquisition, alongside Lithium Universe’s recently completed refinery feasibility study and the bastion of components it’s been building in the 2020s, sets LU7 as “quite ready for a lithium price recovery.”
“We’re confident in our counter-cyclical strategy,” Mr Tan continued, “and firmly believe LU7 will benefit significantly when the lithium market rebounds.”
Some traders seem to agree, though, to 11am in Sydney, there were just 131 buyers.
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Isaac McIntyre
The Market Online
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