On Wednesday, Barrel Energy (OTCMKTS:BRLL) was in the news after it had made an announcement with regards to a shareholder update but it did not come as a positive for the company’s stock as it tanked by as much as 14% for the day.
On Wednesday, BRLL stock fell 14.34% to $0.0418 with more than 4.61 million shares, compared to volume of 1.24 million shares. The stock moved within a range of $0.0360 – 0.0500 after opening trade at $0.0500.
Barrel Energy Provides Shareholder Update
The company announced that over the course of 2022 so far Lithium Carbonate, a key component for electric vehicle battery manufacturers, has seen its price rocket by 80%. At one point, the global price had hit a staggering $72000 per ton. The main reason for the dramatic price rise is that the component is in high demand but at the same time supply has not gone up meaningfully.
Although the demand is rising, environmental concerns have contributed towards the slow increase in supply and on top of that, China remains the biggest producer as of now. Hence, Barrel Energy is now working with some entities for the development of solutions which could help in raising the lithium supply in North America.
The solutions in question are supposed to be environmentally friendly as far as extraction technologies are concerned. If this happens, then the North American market could be dissociated from the worldwide supply chain.
BRLL stock is trading above the 20-Day and 50-Day Moving averages of $0.0329 and $0.0285 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.0202. The company has a total market capitalization of $13.08 million.