Lithium Australia (ASX:LIT) moves closer to commercialisation of lithium ferro phosphate (LFP) - Kalkine Media

Highlights:

• VSPC, a wholly owned subsidiary of Lithium Australia, has hit another milestone towards its goal of commercialising a LFP manufacturing facility using its nano technology.
• The company has completed an engineering study for a LFP pre-qualification pilot plant.
• The study is aimed at determining the optimal commercialisation pathway as well as enabling discussions with offtake and joint development partners.
• LFP test samples received positive feedback from potential customers in the US and South Korea.

In a significant development, Perth-based Lithium Australia Limited (ASX:LIT) has announced the completion of an engineering study for a pre-qualification pilot plant (PQPP Study) by its fully owned subsidiary VSPC Pty Ltd. (VSPC).

The study is a major development towards meeting customer offtake requirements by increasing sample volume requirements higher than VSPC’s current capacity.

Lithium Australia believes that assessment of the PQPP development is vital for the commercialisation of a lithium ferro phosphate (LFP) manufacturing facility, which is expected to have a minimum annual capacity of 10,000 tonnes.

VSPC plans to deploy its nano technology for manufacturing LFP.  

PQPP study enables discussions with offtake or joint development partners

The PQPP study, for which Lycopodium Minerals Pty Ltd provided management, engineering and procurement services, supports the commercialisation of VSPC’s technology. The results of the study are expected to enable discussions with potential offtake or joint development partners.

One of the targets of the PQPP study was to finalise equipment design test work and select process equipment from Western-based vendors.

Lithium Australia will leverage outcomes from strategic Western-sourced equipment testing and selection for designing the commercial facility. This will also enable VSPC to evaluate options for financial support from the government.

New potential partners in South Korea and in the USA tested the samples of LFP cathode materials. The company received positive feedback for these tests. 

Why is this development significant for VSPC?

At present, China accounts for more than 99% of the global LFP market. The LFP market is projected to hit 3 million tonnes by 2030 from 400,000 tonnes in 2021, highlights the company update dated 19 December 2022.

Notably, South Korea and the US plan targeted policy changes, aimed at reducing Chinese dominance in the LFP market while eyeing onshore supply chains.

Lithium Australia believes that VSPC has the potential to become a significant, non-Chinese producer of LFP cathode materials following the commercialisation of its nano technology, despite its modest size. VSPC is among very few companies outside China holding the technical expertise to manufacture LFP powder of the highest quality.

Data source: LIT update, 19 December 2022

Stock price information - The shares of LIT were trading at AU$0.046 midday on 20 December 2022. The company has a market capitalisation of AU$54.95 million.