Lithium Australia says its VSPC subsidiary has signed a memorandum of understanding (MoU) with Beijing Saideli Technology Incorporated Co Ltd (SDL) to commercialise VSPC’s lithium-ferro-phosphate (LFP) cathode material.

VSPC has an R&D and pilot plant facility in Brisbane, Queensland, where it has developed advanced processes for the manufacture of lithium-ion battery (LIB) cathode powders applicable to all LIB chemistries, including LFP and lithium-manganese-cobalt-oxide (NCM). It has a strong focus on the application of LFP in energy-storage and transport applications, having last month signed an agreement with China-based battery and energy storage specialists, the DLG Group, to sell LIBs and Soluna energy storage products into the rapidly expanding Australia renewables energy market.

The most recent agreement with SDL will see the parties collaborate on a staged plan for VSPC to commercialise production of its LFP cathode material. This includes the establishment of a supply chain for VSPC customers in China, as well as a joint feasibility study for LFP production and supply outside China using VSPC proprietary process technology.

Lithium Australia said: “SDL has considerable expertise in the design and manufacture of process equipment and extensive experience in the construction, commissioning and operation of chemical process plants, including those for the production of LIB cathode powders.”

Adrian Griffin, Lithium Australia Managing Director, said VSPC’s MoU with SDL provided Lithium Australia with a “low-capital pathway” to the commercialisation of VSPC cathode powders, in order to meet targets set by its other partners in China.

“We look forward to working with SDL, with a specific focus on the anticipated growth of LFP cathode materials for transport and energy-storage applications,” he said.

Lithium Australia has, in recent years, rationalised its portfolio, but it continues with R&D on its proprietary extraction processes for the conversion of all lithium silicates (including mine waste), and of unused fines from spodumene processing, to lithium chemicals. From those chemicals, Lithium Australia plans to produce advanced components for the battery industry globally, and for stationary energy storage systems within Australia.