IronRidge Resources Ltd (LON: IRR) surged 17.5% despite not making any major announcements. Instead, investors reacted to reports about the significant growth potential present in the global lithium-ion industry.
The company, which has several gold and lithium projects in West Africa, is set to profit significantly from adopting zero-emissions cars in the US, Europe and China as governments fight to stop global warming.
IronRidge’s Ewoyaa lithium project in Ghana has transformed into a standout project within the lithium mining industry. It is ready to advance through the development stages into the production stages to generate revenue.
The mining company also has gold projects in Chad and Côte d'Ivoire, with significant resource potential but not reached the production stages.
IronRidge agreed with Piedmont to fast track the funding and development of the Ewoyaa lithium project to get it to the production stages quickly.
Suppose the company manages to get the Ewoyaa project to the production stage by the end of next year. In that case, it could be well-position to profit from the rising demand for lithium from the electric car and battery manufacturers globally.
The lithium-ion battery market is expected to be worth $300 billion by 2030, with the World Bank expecting the global demand for battery metals to surge 1,000% by 2050.
IronRidge Resources share price.
IronRidge Resources shares surged 17.49% to trade at 22.3p, rising from Wednesday’s closing price of 18.98p.
Should you invest in IronRidge Resources shares?
IronRidge Resources shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are IRR shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
