Lithium Australia reorganises business divisions providing investor optionality and cost reductions

By Deputy Chief EditorOctober 14, 2019

151 2 minutes read

Lithium Australia NL (ASX:LIT) has implemented a rationalisation program designed to consolidate its efforts behind its most advanced technologies.

In doing this, the company will improve management and investor focus for each of its four business divisions – raw materials, lithium chemicals, batteries, and recycling.

A desired outcome of this rationalisation program is to allow investors to invest directly in the business divisions of their choice as stand-alone vehicles while still having exposure to the whole energy-metal cycle.

Reorganisation will also reduce costs

Lithium Australias managing director Arian Griffin said: “Reorganisation of the companys business units and asset base will create more focused opportunities for investors with an appetite for the energy-metals and battery sectors.

“Lithium Australia will be able to reduce costs while continuing to deliver the benefits of its current research programmes.

“This is critical in a market of depressed prices for battery commodities.”

Raw materials: rationalising tenement holdings

The companys new raw materials divisional manager Mark Strizek is in the process of rationalising its tenement holdings across WA, NT, QLD and SA.

LIT plans to use its processing technologies to extract what have been historically considered waste materials such as lithium micas and fine spodumene.

To this extent, it is seeking partners for its 54% interest in the Electra Project in Mexico, its Greenbushes tenements in Western Australia, and Dudley Project in South Australia.

Lithium chemicals: seeking partners to commercialise processing technologies

LIT's lithium chemicals division comprises patented processing technologies such as SiLeach®, and LieNA®.

Notably, the company has already partnered with some of the best technical expertise available such as the Australian Nuclear Science and Technology Organisation (ANSTO).

While the production of lithium phosphate is a common thread in the extraction technologies LIT has developed, there is also the ability to produce lithium hydroxide or carbonate as required.

LIT is seeking partners to commercialise its LieNA® process and has made a decision to delay any further investment in its SiLeach® processing technology.

Batteries and cathode materials: PFS results due in near-future

LIT is the sole owner of VSPC, a company with three families of patents covering novel processes for the production of LIB cathode powders.

Product testing of VSPC-produced battery materials with customers in Japan and China is ongoing and feedback to date has been positive.

A pre-feasibility study (PFS) for a 5,000 tonnes per annum cathode-material project has been completed, with its strategic recommendations the subject of internal review.

The results of the PFS will be released in the near future.

LIT and VSPC have also entered into an agreement with DLG to commercialise VSPC cathode powders in China, and develop a battery distribution business within Australia.