Lithium Australia wraps up pilot plant study, plots expansion

West Perth-based Lithium Australia has chalked up another milestone on its journey to commercialising a rival to traditional lithium-ion batteries with completion of an engineering study for a pre-qualification pilot plant, or “PQPP”.

Lithium Australia says it is eventually aiming for a manufacturing plant that can produce a minimum of 10,000 tonnes per annum of lithium ferro phosphate, or “LFP”– a move which the company believes will make it one of the few significant LFP producers outside China.

The study aims to support a proposal to expand its current pilot facility to a size able to provide sufficient samples for prospective customers to trial. The company expects it will help determine the optimal commercialisation pathway in addition to allowing engagement with offtake and joint development partners.

The study was conducted by Lithium Australia’s wholly owned subsidiary VSPC which is based in Queensland. VSPC has patented technology that challenges conventional rechargeable lithium-ion batteries that use lithium cobalt oxide which VSPC argues are toxic and unstable at high temperatures.

VSPC has developed a process to produce nanometre-sized grains of LFP metal oxides the company says displays enhanced physical, electrical, optical and mechanical properties not currently available in the lithium-ion battery market.

According to the company LFP-based batteries are non-toxic, cheaper to produce, boast fast charge times and can tolerate extreme conditions.

LFP samples have already been supplied and tested by potential customers in the USA and South Korea and VSPC says the feedback has been positive.

That feedback will be of particular significance and encouragement to VSPC as the LFP market is projected to grow from 400,000 tonnes last year to more than 3 million tonnes by 2030.

At the same time VSPC is aware buyers of LFP are keen to secure supply chains from countries other than China, which currently accounts for more than 99 per cent of global LFP production.

A strategic focus of the study was completion of equipment design test work and selection of process equipment supplied by Western nation vendors.

Lithium Australia says outcomes from strategic Western-sourced equipment testing and selection will be leveraged for the commercial facility design and allow VSPC to assess options for State and federal government funding.

Lithium is one sector where shafts of sunlight continue to alleviate the economic doom and gloom shrouding the global economy at present, with the latest rays emanating from Australia’s Department of Industry, Science and Resources.

The department’s chief economist reckons the nation’s total resource and energy exports will reach $459 billion this financial year and lithium is expected to be the star performer. Its export earnings are expected to top $16 billion in 2022–23, more than trebling last financial year’s $5 billion and making lithium Australia’s sixth-largest resource and energy commodity export.

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