Compass Minerals International (CMP) - Get Report shares on Wednesday jumped after the mineral company said it found about 2.4 million metric tons of lithium carbonate equivalent at its active Ogden, Utah, solar evaporation site.
Shares of the Overland Park, Kan., company at last check were 13% higher at $68.15.
Lithium is a key ingredient in electric vehicle batteries. As electric vehicle demand grows, analysts predict 75% of all mined lithium could go to EVs by 2025.
The company said an initial assessment estimated total combined indicated and inferred lithium resources of 127,000 metric tons of LCE at the active Ogden site, the company said.
The assessment also found an additional indicated lithium resource of about 2.32 million metric tons of LCE within the ambient brine of the Great Salt Lake, which can be accessed through the company’s current infrastructure.
The company said it is evaluating the most efficient and sustainable means of extracting the lithium which accumulates through its current solar evaporation process and can be accessed through its current leases and permits.
"In a market hungry for domestically sourced lithium produced with minimal environmental impact, we believe a sustainable and readily available lithium resource like we have defined at our operations on the Great Salt Lake could be a true differentiator for our company," Kevin Crutchfield, president and chief executive, said in a statement.
Meanwhile, CL King analyst David Silver upgraded Compass Minerals to buy from neutral with a $75 price target.