AUS
NZ
UK
CA
USA
IND
Highlights
- Joint Venture Formation: Livium (ASX:LIT) and Mineral Resources (ASX:MIN) are advancing their partnership for the commercialisation of the LieNA® technology, a proprietary lithium extraction method.
- Stage 1A Activities: The companies will undertake additional activities, including evaluating alternative commercialisation pathways and selecting the preferred lithium product for development, including battery-grade lithium carbonate.
- Funding and JV Structure: MinRes will fund Stage 1A through its convertible note and R&D tax incentives, with the goal of converting its investment into a 50% equity stake in a new joint venture (LieNA Pty Ltd).
- Royalties and Licensing: The joint venture will license the technology to third parties, aiming for a target royalty rate of 8% on lithium processed via the LieNA® technology, potentially opening new markets.
- Semi-Commercial Facility: Post-successful development, MinRes may fund a semi-commercial facility to extract lithium at a commercial scale under the technology’s licence.
Livium Ltd (ASX:LIT) has announced the next steps in its collaboration with Mineral Resources Ltd (ASX:MIN) for the commercialisation of its LieNA® technology. This follows the completion of key milestones, including the operation of a pilot plant, refinement of high-quality lithium phosphate, and a demonstration plant engineering study.
Stage 1A Activities
In light of the current lithium market conditions, Livium and MinRes have agreed to conduct further development activities, referred to as Stage 1A Activities. These include assessing alternative commercialisation pathways for LieNA® and exploring the potential to produce battery-grade lithium carbonate. MinRes will fully fund these activities using the remaining balance of its convertible note and R&D tax incentives received in January 2025.
Joint Venture (JV) and Licensing Model
Upon successful completion of Stage 1A, MinRes' convertible note will convert into a 50% equity stake in a new JV entity, LieNA Pty Ltd, which will own the LieNA® technology. If the activities are unsuccessful, MinRes may opt out, but the JV will still owe MinRes 50% of the technology's agreed value.
The JV plans to license the LieNA® technology at a headline royalty rate of 8%. This could significantly expand Livium’s addressable market by capturing a fee on all lithium processed through the technology. Additionally, MinRes will have the option to fund, develop, and operate a semi-commercial facility to extract lithium at a commercial scale under the licence.
