West Perth-based explorer Avenira Limited will go ahead with feasibility studies for its proposed battery materials production plant in Darwin.
West Perth-based explorer Avenira Limited will undertake with feasibility studies for its proposed battery materials production plant in Darwin.
The gold and phosphate explorer's scoping study for its lithium-iron phosphate cathode manufacturing project in Darwin revealed “strong economics and technical viability”, according to Avenira.
“Highlighting the potential for Avenira to become one of the leading lithium iron phosphate cathode active material (LFP CAM) producers globally, and one of the only LFP producers in the world based outside of China, Taiwan and Japan,” the company said.
Lithium-iron phosphate batteries are a type of lithium-ion batteries, which is a rechargeable battery that can be used in electric vehicles.
The study evaluated two initial scales of production that can be built upon.
The first option involves a single train with a production capacity of 10,000 tonnes per annum, which can be scaled up to a plant with three trains capable of producing 30,000tpa.
The pre-production capital costs including contingency for the one-train plant is estimated to cost a total of $180 million while the three-trail hub is tipped to cost $527 million.
“The LFP scoping study demonstrates the technical and economic viability of the company's modular train design to progressively scale production to meet the demand for electric vehicles and stationary storage,” executive chairman Brett Clark said.
“This approach allows the company to finance the LFP project incrementally, using cashflows from our proposed initial 10,000tpa plant for expansion to 30,000tpa.”
Mr Clark said the project would promote Australia’s advanced manufacturing sector.
“We believe the LFP project is the key to unlocking the Northern Territory as the next leading lithium battery metals supply chain hub,” he said.
“Our 30,000tpa LFP plant will create over 120 manufacturing jobs during operations.
“We are excited about the prospect of working alongside the Northern Territory government on this significant economic and strategic opportunity.”
Avenira will now progress with feasibility studies, followed by securing a technology licence agreement, site selection, regulatory approvals and a financing decision.