This S&P/ASX 200 Index (ASX: XJO) stock is leaping higher today after reporting on a major deal with United States lithium giant Albemarle Corporation (NYSE: ALB).
Any guesses?
If you said engineering and mining services company Monadelphous Group Ltd (ASX: MND), go to the front of the virtual line.
The ASX 200 stock closed yesterday trading for $12.50. At the time of writing, shares are swapping hands for $13.30 apiece, up 6.4%.
For some context, the ASX 200 is up 0.2% at this same time.
Here’s the lithium news that looks to be piquing ASX 200 investor interest today.
ASX 200 stock lifts off on lithium project contract
The Monadelphous share price is off to the races after the company reported it has secured a $200 million construction contract with Albemarle.
The contract will see the ASX 200 stock work on the expansion of the Kemerton lithium hydroxide plant, located in Western Australia. It includes front-end pyromet structural, mechanical, piping, electrical and instrumentation works for two new lithium processing trains.
Monadelphous will start work on the project later in 2023. The company expects to complete the construction in the second half of 2025.
Monadelphous managing director, Zoran Bebic, said the lithium hydroxide plant contract with Albemarle was likely to be one among many in “a new wave of major construction projects to come to market”.
He pointed to last week’s announcement with Fortescue Metals Group Ltd (ASX: FMG) to supply and construct an overland conveyor and transfer station at the Christmas Creek mine site as an indication of the expected ramp-up in activities.
Commenting on the Kemerton lithium hydroxide plant contract sending the ASX 200 stock surging today, Bebic said:
We are extremely pleased to have secured these key construction opportunities and look forward to continuing to deliver high quality solutions for customers, as well as supporting local communities through the provision of employment and supply opportunities.
Monadelphous share price snapshot
With today’s lithium project fuelled surge factored in, the ASX 200 stock is now up 30% in 12 months.
The Monadelphous share price is up 2% in 2023.
