PMET Resources' (ASX:PMT) concept study gauging the ability to produce battery-grade lithium carbonate from ores sourced from the Shaakichiuwaanaan project in Canada has the potential to provide several benefits, Euroz Hartleys said in a Monday note.

The first and main benefit is the potential to reduce logistics costs linked to transporting 5.5% lithium oxide spodumene concentrate over 800 kilometers to the Matagami transport hub and the roughly 1,000 kilometers rail route to the shipping port, the equity research firm said.

"Another potential economic benefit could be higher lithia values and a broadened customer base, where PMET could have the opportunity to capture the uplift from a refined product, compared to selling concentrate to refiners," the investment firm said.

It added that the potential to produce a battery-grade product warrants further flowsheet investigation, and the deployment of the process at pilot-scale would be needed.

Current oil prices will support electric vehicle penetration rates globally, and the Middle East conflict "has only strengthened the already strong tailwinds in the lithium sector," Euroz Hartleys said.

It maintained a speculative buy recommendation on PMET Resources with a price target of AU$0.95 per share.

The company's shares gained 8% in recent Monday trade.