Highlights:

• Lithium Australia Limited has undergone transition of ASX listing classification from ‘mining entity’ to a materials entity.
• The company says the reclassification is rooted in the gradual evolution in business focus since 2014 from ‘exploration’ to ‘recycling technologies and lithium processing’.
• LIT’s wholly owned subsidiary Envirostream is engaged in collecting, transporting, and recycling batteries from across the country.
• The other 100%-owned subsidiary VSPC is committed to producing advanced lithium metal phosphate powders for next-generation lithium-ion batteries.

In a significant turn of events, Lithium Australia Limited (ASX:LIT) has informed that its ASX listing classification has changed from a ‘mining exploration entity’ to a standard materials listing. The development is effective from Monday, 12 December 2022.

Know that the reclassification signifies the evolution of the company’s business focus to ‘recycling technologies and lithium processing’ from ‘mineral exploration’ since 2014.

The reclassification will be providing more clarity for existing shareholders and investors regarding LIT’s operating activities. In addition, periodic reporting requirements will now be better aligned with underlying operations, assures the company.

That have been said, LIT continues to retain these interests in exploration projects:

1.wholly owned Western Australian project, Lepidolite Hill

2.joint venture projects with Charger Metals (ASX:CHR). LIT holds a 30% stake in the Western Australian projects, Coates and Lake Johnston and the Northern Territory project, Bynoe

3.joint venture project with Galan Resources (ASX:GLN). LIT holds a 20% stake in the Greenbushes South project.

Now that the company is focused on recycling technologies and lithium processing, LIT makes all the more sense to talk about two of its wholly owned subsidiaries, which are in alignment with its new avatar:

1. Envirostream (100%-owned subsidiary of LIT): Recently Envirostream made headlines by featuring on the coveted WWF Renewable Scorecard.

Envirostream is spearheading Australia’s battery recycling industry, delivering cutting-edge, safe, innovative management solutions to one of the country’s waste industry’s biggest and rising challenges: battery disposal.

Through battery recycling, the state-of-the-art Victoria-based battery processing facilities of Envirostream are giving a sustainable solution by means of collecting, sorting and processing critical battery metals from all types of spent batteries in a bid to power the batteries of future.

Envirostream derives benefits from the government-backed battery recycling scheme, enjoying rebates across battery collection, sorting, and processing while targeting expansion across the nation.

2. VSPC (100%-owned subsidiary of LIT): Having more than 20 years of experience, VSPC is a developer of leading-edge materials for e-mobility and energy storage applications, leading to zero-carbon economy.

The patents of VSPC cover the production of advanced powders, particularly lithium ferro phosphate (LFP), for next-generation lithium-ion batteries (LIBs).

As things stand currently, demand for LFP commands more than half the global market for LIB materials, thereby explaining to meet the burgeoning LFP market pressures. Impressively, VSPC boasts to be one of only a few entities other than China having the technical expertise required to manufacture highest-quality LFP powder, highlights LIT.

LIT shares traded at AU$0.046 on 12 December 2022.