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Lithium Australia prepares business units for listing

Lithium Australia’s ongoing review and consolidation of its business into four operational divisions; raw materials, lithium chemicals, batteries and recycling is progressing well. The company is looking to create a separate and distinctive identity for each division with one eye on potentially listing each of them in the future or at the very least, attracting investment directly into each entity.

Lithium Australia is an ASX forerunner in the lithium space, developing and then purchasing a suite of lithium-based technologies in addition to collecting a swag of prospective looking exploration ground before most punters were even alive to the lithium opportunity.

The company’s technologies are designed to flow seamlessly from one business unit to the next up and down the lithium supply chain.

Specifically, its capabilities include the provision of raw materials from exploration and development, technology to recycle lithium waste and spent batteries, the extraction of lithium chemicals from waste material and the production of cathode powders for battery-cells.

More recently, the Perth based lithium innovator increased its equity stake in strategic partner, Envirostream Australia, from 18.9% to 23.9%.

Envirostream is the only Australian company with the capability to collect, sort, shred and separate all components of a lithium-ion battery.

The recycling business unit is expected to be investment-ready in the first half of 2020, according to the company.

Lithium Australia Managing Director Adrian Griffin said:“Our plan to create greater opportunities for shareholders and potential investors began with increasing our equity in Envirostream. We see the recycling of spent batteries as a significant opportunity, given the increased legislative and community focus on environmental responsibility.

Envirostream’s existing business model and Lithium Australia's metal extraction technologies could exist in perfect symbiosis, and we are planning for a public listing.”

Amongst the company’s other units that are approaching commercialisation, is the production of lithium-ferro-phosphate cathode powder from mine waste and recycled batteries.

Lithium Australia, through its wholly-owned subsidiary VSPC, created cathode powders during a pilot study that are now being incorporated into a commercial format for lithium-ion coin-cell batteries at the DLG Battery Co.’s plant in China.

The company is finalising its pre-feasibility studies to produce cathode powders and it will also mount a trade delegation to China in November this year.

Lithium Australia has partnered with DLG Battery Co. to form a new company Soluna Australia Pty Ltd, with a mutual objective to provide recycled battery products on a national scale. The company said that legal formalities of the incorporation will be finalised in due course.

Lithium Australia is also looking to add value to its swag of prospective looking exploration ground and is in discussions with third parties in regard to some of its WA exploration licenses and will look to revisit opportunities around its Sadisdorf lithium-tin deposit in Germany.

The company’s patented LieNA® process is capable of recovering lithium from spodumene and fine-spodumene tailings. Lithium Australia is also in discussions with lithium-concentrate producers and looking to apply the company's LieNA® process at existing spodumene operations, thereby increasing lithium recoveries and utilisation.

With a raft of negotiations happening around a plethora of unique technologies and exploration ground, expect some heavy-duty newsflow to come out of this lithium innovator over the next 12 months.

 

Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au

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