Published On: January 15th, 2024
Australia to Continue Leading Global Lithium Production
Lithium Australia (ASX:LIT) liquidates AUD 800,000 of the AUD 4.5 million available as part of its joint venture (JV) with Australian mining giant MinRes (Mineral Resources).
The JV will result in a state-of-the-art Lithium Extraction plant to be built utilising the latest LiEna® tech developed by Lithium Australia.
This drawdown will facilitate further progress in the construction of the pilot plant and will directly be invested towards the construction of the plant, operations and more.
Lithium Australia’s LiEna® Technology
Lithium Australia’s patented LiEna® technology
- Lithium Australia’s revolutionary LiEna® technology can increase lithium extraction yields by up to 50% compared to current market benchmarks.
- The technology works on extracting lithium from fine and low-grade spodumene for better overall yields.
- LiEna® can be a game-changer for the mining industry while dealing with low-grade spodumene structures and mines, facilitating better operational bottom lines.
Lithium Australian and MinRes JV Set to Potentially Revolutionise Lithium Mining
Lithium Australia’s groundbreaking LiEna® technology can ‘significantly boost lithium extraction efficiency from hard rock mines’, according to MinRes Chief Executive Joshua Thurlow.
Lithium Australia Chief Executive Officer further commented on the JV, adding that partnering with MinRes ‘complements our leading lithium extraction technology given their extensive owned operations and strategic movement downstream into the battery materials sector.’
Key Details of the JV
- MinRes will invest up to $4.5 million to fund the construction of the pilot plant, plus an engineering study for a demonstration plant. MinRes will also supply all required raw materials for the same.
- Lithium Australia will share its patented LiEna® tech as part of the JV.
- Upon completion of the plant operations, the funds (as convertible notes) will be transformed into equity for a new 50:50 JV.
- The JV will license the tech for distribution to third parties at a gross product royalty rate of 8%.
- An engineering consultancy firm, Carnac, was appointed lead engineer for the engineering study necessary for the demonstration plant.
Mining Lithium in Australia: Market and Production Overview
Australia remains the leading lithium producer in the world, accounting for more than 50% of the global production.
The Australian lithium mining industry continues to be one of the fastest-growing mining industry sub-sectors, with a CAGR of more than 38% over the last five years.
Projections further show that Australian Lithium mining is on its way to double current production by 2028.
Mineral Resources or MinRes continues to be one of the leading names in this mining sub-sector, and this JV powered by Lithium Australia’s LiEna® technology can change the lithium mining landscape with higher and more efficient lithium production.
Where is Lithium found in Australia?
Currently, Australia’s lithium mines are located around Western Australia. Greenbushes, located 250 km south of Perth, is the world’s largest spodumene deposit, producing almost 40% of Australia’s lithium production. However, recent research and expeditions have shown a high potential for spodumene concentration in regions like Victoria, Queensland, and New South Wales.
Lithium Australia: Investor Outlook
Lithium has become a crucial necessity for multiple industries and technologies. Its importance and value are expected to increase as the world continues to expand towards EVs and other electronic devices powered by Lithium Ion batteries.
The market average price of lithium has increased from USD 5180 in 2010 to an ATH of USD 37000 in 2022, calculated in US Dollars per metric ton.
Forecasts suggest that Australia will continue as the leading producer of lithium.
With Lithium Australia’s LiEna® technology increasing yields by up to 50%, their JV with MinRes can potentially make both companies the leading names in the global lithium industry soon.
