Lithium Australia NL (ASX: LIT), a metals and mining sector player with a rational portfolio of projects and alliances, is focussed on establishing a vertically-integrated lithium processing business, via integration of lithium recycling, extraction and processing.
On 6 January 2020, VSPC Ltd, a wholly-owned subsidiary of LIT and developer of advanced cathode materials, and Beijing Saideli Technology Incorporated Company Ltd (SDL) announced to have signed a Memorandum of Understanding (MoU) for commercialisation of VSPC cathode material.
The terms of the MoU include the low-capital establishment of a supply chain for VSPC cathode material in China, and collaboration on a FS for an international cathode material project using VSPC exclusive process technology. The MoU was agreed following significant technical review and discussions around VSPC’s Lithium-Ferro-Phosphate (LFP) cathode product.
VSPC has an R&D and pilot plant facility in Brisbane, Queensland, where it has developed advanced processes for the manufacture of lithium-ion battery (LIB) cathode materials applicable to all LIB chemistries, including LFP and lithium-manganese-cobalt-oxide (NCM). VSPC’s processes can be characterised as:
- Simple nanotechnology for superior battery cathodes.
- Precise control of composition and particle size.
- Unparalleled quality control.
- Low-cost production.
VSPC will in the first instance commercialise its process technology for the manufacture of cathode material for LFP batteries.
SDL is a national high-tech enterprise, listed on the Chinese over-the-counter (OTC) market in 2015, and specialises in chemical process development, equipment design and manufacture, and the delivery of highly-automated chemical plants for industries that include LIB cathode production, paint and pigment materials and biopharmaceuticals. The company’s considerable expertise spans across overall planning, process design, equipment manufacturing, procurement, installation, commissioning, inspection, training, production technical support and after-sales service for complete sets of automated process equipment.
LFP cathode material – Market Opportunity: The market for LFP cathode material is forecast to expand over the next decade primarily facing increased demand from core applications like ebus and stationary storage, in addition to significant demand expected through substitution (existing) and displacement (expanding) in applications that are traditionally the domain of lead acid batteries; such as 12V and 48V applications for micro and mild hybrid powertrains, LSEV (low-speed electric vehicles), datacentre UPS and 5G tower backup.
The following key attributes make LFP the ideal LIB chemistry for energy-storage applications:
- Deep discharge;
- Fast charging rates;
- High power delivery;
- Long operating life;
- Low cost;
- Wide operational temperature range; and
- Safety (no thermal runaway).
Furthermore, LFP is ideally suited to other applications wherein energy density of the battery is less critical, as with, for example, e-buses, light-rail, trucks and military and marine applications.
Read More: Lithium Australia’s CY19 Highlights
Stock Information: Lithium Australia has a market capitalisation of around AUD 34.52 million with ~ 556.77 million shares outstanding. On 6 January 2019, the LIT stock was trading higher at AUD 0.063, edged up 1.613% intraday (AEDT 01:20 PM), with ~ 2.61 million shares traded until then.
LIT has also generated positive returns of 8.77% Year-to-date, 34.78% in the last three months and an impressive 77.14% in the last one month.
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