Lithium Australia has entered into a partnership with Mineral Resources (MinRes) to establish a joint venture and develop a pilot plant aimed at producing lithium iron phosphate, a key component used in electric vehicle batteries.
Under the agreement, MinRes, an iron ore producer, will fully fund the development and operation of the pilot plant in Queensland, with an allocated budget of A$4.5 million ($2.96 million). Additionally, MinRes will supply the necessary raw materials to the pilot plant at no cost to Lithium Australia.
Lithium Australia will contribute its patented LieNA technology, which has the potential to enhance lithium extraction yields by up to 50%. The company will also be responsible for managing the production process at the pilot plant.
The joint venture aims to add value to the lithium supply chain and capture higher margins for Australian lithium companies. Depending on the results of the pilot plant, both Lithium Australia and MinRes will form a 50:50 joint venture to own and commercialize the LieNA technology.
This partnership comes as Australian lithium developers seek to strengthen their positions in the lithium iron phosphate market, following the recent approval of plans by Australia’s largest independent lithium producer, Pilbara Minerals, to construct a trial plant.