Livium to set up battery materials plant

Livium Ltd’s battery materials division, VSPC has selected Australia as its preferred location to construct a small scale demonstration plant to produce battery materials lithium ferro phosphate (LFP), and the emerging lithium manganese ferro phosphate (LMFP).

LMFP is an emerging product offering a 15 to 20 percent increase in specific energy over LFP when used in a lithium ion battery.

Livium, formerly known as Lithium Australia, decided on the local location following internal risk assessments and customer engagement.

Two factors of the assessment related to the expected availability of Australian government funding coupled with the requirement to build a larger offshore plant, which introduces higher risks.

The proposed development pathway includes the construction of a demonstration plant capable of continuous operation with its small scale allowing for sample sizes in line with customers’ product qualification requirements, which will facilitate the securing of binding offtake for VSPC products.

VSPC already operates a R&D facility in Brisbane employing eight, and capable of producing two tpa of battery materials.

Livium CEO and Managing Director, Simon Linge said: “Our focus on an Australian-based demonstration plant reflects our commitment to advancing VSPC’s technology in a sustainable and scalable manner.

“This approach allows us to align our development with the growing global demand for LFP battery materials, which is underpinned by deployment of energy storage and electric vehicle adoption.

“By combining public funding initiatives with strategic private partnerships, we are seeking to advance VSPC whilst minimising equity contributions from Livium shareholders.”

Livium told investors it expected binding offtake agreements to flow from its latest development, with the demonstration plant serving as a stepping stone toward the establishment of a full-scale production facility with an expected capacity of 25,000 tpa of LFP or LMFP.

A 25,000 tpa production facility has the potential to generate annual revenues of ~US$319 million, assuming an LFP price of ~US$12.75/kg1.

“The company has continued to evolve its VSPC product suite and has recently added new offerings in line with market demand and with the potential for reduced production costs.

“The demonstration plant will have capability to produce these new product offerings without significant change to the prior designs.”

Livium is pursuing non-dilutive government funding combined with private strategic partners, who will invest directly into VSPC, avoiding the need to raise new capital.

“Progress has been made to fund the development and operation of the demonstration plant – further updates will be provided as matters progress.”

Picture: Livium