Lithium Australia NL’s (ASX: LIT) wholly owned subsidiary VSPC has signed an MoU with China’s SDL to commercialise VSPC cathode material for the international stored energy market.
VSPC develops advanced cathode materials, with patented processes for the production of lithium-ion battery (LIB) cathode materials.
Lithium Australia Managing Director Adrian Griffin said the MoU signed by VSPC and SDL will see the parties collaborate on a staged plan for VSPC to commercialise production of its LFP cathode material.
This will include 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.
“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,” Mr Griffin said.
“We see partnering with SDL – which has a demonstrated track record in process development and high-tech process plant delivery – as a great opportunity.
“VSPC’s MoU with SDL provides Lithium Australia with a low-capital pathway to the commercialisation of VSPC cathode powders, in order to meet targets set by our 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.”
Mr Griffin said the market for LFP cathode material is forecast to grow strongly over the next decade.
In addition to core applications for ebus and stationary storage, significant demand is expected through substitution (existing) and displacement (expanding) in applications traditionally the domain of lead acid batteries; including but not limited to 12V and 48V applications for micro and mild hybrid powertrains, LSEV (low speed electric vehicles), datacentre UPS and 5G tower backup. Attributes of LFP that make it the ideal LIB chemistry for energy-storage applications
“Further, LFP is ideally suited to other applications in which the energy density of the battery is less critical, as with, for example, e-buses.”
The terms of the MoU include the low-capital establishment of a supply chain for VSPC cathode material in China, and collaboration on a feasibility study for an international cathode material project using VSPC technology.
The MoU was agreed following significant technical review and discussions around VSPC’s Lithium-Ferro-Phosphate (LFP) cathode product.
