Lithium Australia has grown its Envirostream battery recycling feed sources through partnerships with LG, Battery World, Bunnings and many others. With permits and feed stock being key barriers to entry Lithium Australia has set itself up for an entrenched and fully permitted position in the fast growing industry sector. Its Envirostream battery recycling plant has a 99-year Victorian EPA permit.
Only 10 per cent of batteries are currently recycled in Australia giving ample room for additional feedstock to boost the economics of the Envirostream business. New agreements with LG to recycle 250 tonnes per annum of lithium ion batteries and with Battery World to recover used batteries from their 110 stores in Australia will drive growth. The Envirostream business is building towards operational profitability and Lithium Australia is pushing hard to build battery volumes to that end.
In Brisbane wholly-owned Lithium Australia subsidiary VSPC undertakes research and development into the production of high-purity, high performance battery materials. Key products of the pilot plant are lithium ferro phosphate, or “LF”, and lithium manganese ferro phosphate, or “LMFP” cathode powders. The company says LMFP “is widely regarded as the next generation lithium metal phosphate material, as it has the potential to retain all the advantages of LFP, whilst matching the energy density of nickel cobalt chemistries at the battery pack level.”
Lithium Australia has accelerated its plans for production of LFP and LMFP by commencing a definitive feasibility and plant capacity assessment study. The company sees the production of LFP/LMFP cathode powders as major commercial opportunities as new battery technology increases over nickel and cobalt cathode materials. The company says strong commercial interest has already been received for pilot plant products and future production.
Contractor Lycopodium is anticipated to complete a pre-qualification pilot plant engineering study in early 2023. The plant will enable higher product volumes to be produced for customer testing and is necessary for offtake agreements in respect of a full-scale commercial production facility.
The preliminary feasibility study into the commercial production facility for LFP and LMFP provided an attractive investment case based upon first production in 2026. EBITDA was forecast to be US$66 million per annum with an investment of US$113 million in two stages. Project net present value was US$253 million based upon production of 10,000 tonnes per annum.
The company finished the quarter with $13.6 million cash on hand after a $12.1 million placement. Investments in ASX listed companies provide further balance sheet strength and lithium exploration upside.
Lithium Australia has a number of patents for the recovery of lithium to produce lithium phosphate from various sources including low grade spodumene and micas. The patents provide potential business opportunities creating feed for LFP and LFMP production.
It is a strategy that has parallels with Lithium’s vision including forging an ethical and sustainable future for the global battery industry.
One aim is to tap into the recycling potential for the more than 90 per cent of lithium-ion batteries that end up in landfill in Australia with Envirostream operating a battery recycling facility in Victoria.
Lithium-ion batteries, or “LIB” waste is expected to grow exponentially in Australia in coming years from the actual total of 3,300 tonnes in 2016 to a predicted total of 17,800 tonnes in 2025 and 137,600 tonnes in 2036.
Lithium Australia Chief Executive Officer, Simon Linge said: “As the world accelerates its transition to electrification, the demand for the materials to not only manufacture batteries but to sustainably recycle batteries will only increase.”
“Lithium Australia is now perfectly positioned to play its part in the battery circular economy.”
The other arm of Lithium’s business centres on next generation lithium-ion batteries including lithium ferro phosphate, or “LFP” through its 100 per cent-owned subsidiary VSPC.
VSPC develops leading-edge materials for e-mobility and energy storage applications towards a zero-carbon economy and Lithium says it is one of the few entities outside of China with the technical expertise to manufacture LFP powder of the highest quality to meet burgeoning market pressures.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
