How is Lithium Australia (ASX:LIT) making a strong mark in battery space?

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How is Lithium Australia (ASX:LIT) making a strong mark in battery space?

Pilot plant of LIT’s subsidiary for LFP and LMFP production
Image source: LIT Presentation, dated 21 January 2022

Highlights

  • Lithium Australia is dedicated to creating a circular battery economy to ensure an ethical supply of energy metals to the battery industry.
  • The Company has developed a suite of compatible processing technologies that offer a smooth transition across every stage in the battery supply chain.
  • LIT has been focused on all four fronts- Batteries, Recycling, Raw Materials and Lithium Chemicals, to create a circular economy.

Lithium Australia NL (ASX:LIT) is strategically uniting resources and innovation to vertically integrate lithium extraction, processing, and recycling.

The Company is focused on ensuring an ethical supply of energy metals to the battery industry by creating a circular battery economy, which in turn would reduce the length of the battery supply chain and associated carbon footprint.

ALSO READ: Lithium Australia beefs up position in battery market in September quarter

To that end, Lithium Australia has developed a suite of compatible processing technologies that provide a smooth transition across every interface in the battery supply chain. These technologies, protected by international patents, minimise the steps in a journey from taking resources from the mine gate through to manufacturing electric vehicles and back again via recycling.

With this backdrop, let us look at the four areas - Batteries, Recycling, Raw Materials and Lithium Chemicals, where the Company is making impressive progress to create a circular economy.

Significant LFP and LMFP demand drives battery industry

Lithium ferro phosphate (LFP) and lithium manganese ferro phosphate (LMFP) are increasingly preferred, as they provide several desirable qualities as a battery material. There is immense pressure on LFP availability, driven by increased global demand for LFP, lack of LFP production in the West and strong domestic consumption of LFP within China.

ALSO READ: Lithium Australia welcomes VSPC’s move to join R&D for next-gen lithium batteries

On this front, Lithium Australia’s 100%-owned subsidiary VSPC LTD is leading globally in developing LMFP. Notably, this makes Lithium Australia as one of the few companies outside China providing direct exposure to the growing LFP industry, as well as the only Company on the ASX to have investment exposure to LFP.

VSPC uses the same patented processes to produce both LMFP and LFP for lithium-ion batteries, with the LMFP’s particle size and distribution ideal for optimum battery performance.

LFP: an international opportunity

Source: Copyright © 2022 Kalkine Media®, Data Source: LIT Presentation, dated 21 January 2022

Recycling to get a boost from upcoming Battery Stewardship Scheme

Lithium Australia’s 90%-owned subsidiary Envirostream Australia Pty Ltd provides downstream spent-LIB collection and recycling.

As the only licensed mixed-battery recycler in Australia, Envirostream is well-positioned for the roll-out of Australia-wide Battery Stewardship Scheme early this year.

ALSO READ: Lithium Australia’s battery recycling division wins key permit to expand Victorian operations

Lithium Chemicals sees major advancements

Lithium Australia’s LieNA® hydrometallurgical process is designed to recover lithium from spodumene. The process improves resource yields by processing fine and low-grade material not amenable to conventional ‘conversion’ methods for producing lithium chemicals. The first LieNA® licence has been sold, with a pilot plant currently under construction.

ALSO READ: Lithium Australia inches closer to commercialisation of next-gen LieNA® technology

Lithium Australia’s LieNA® process

Source: LIT Presentation, dated 21 January 2021

Raw Materials buoyed up by positive exploration results

Lithium Australia has equity in battery metal explorers, including Galan Lithium Ltd (ASX: GLN) and Charger Metals (ASX: CHR).

The Company has a free-carried interest in the following lithium projects:

  • Greenbushes South (Western Australia) – 20%
  • Bynoe (Northern Territory) –30%
  • Lake Johnston (Western Australia) –30%
  • Coates (Western Australia) - 30% interest

All the projects are generating positive exploration results.

ALSO READ: Latest work at Lithium Australia’s Bynoe JV Project indicate large lithium system

All in all, Lithium Australia and its subsidiaries are making significant progress to ensuring an ethical supply of energy metals to the battery industry, expected to drive electric mobility and reduce carbon footprints.

LIT shares were trading at AU$0.135 midday on 21 January 2022.

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