Lithium Australia Subsidiary Signs Cathode Technology MoU with Chinese Conglomerate

THE BOURSE WHISPERER: Lithium Australia’s (ASX: LIT) wholly-owned subsidiary company VSPC Ltd, has signed a Memorandum of Understanding (MoU) with Beijing Saideli Technology Incorporated Company Ltd (SDL) to commercialise VSPC cathode material.

The terms of the MoU include the low-capital establishment of a supply chain for VSPC cathode material in China, and collaboration on a feasibility study for an international cathode material project, beyond China, using VSPC technology.

The MoU was agreed following technical review and discussions based on VSPC’s Lithium-Ferro-Phosphate (LFP) cathode product.

VSPC is a developer of advanced cathode materials that owns a patented process for the production of lithium-ion battery (LIB) cathode materials.

SDL’s experience lies in the design and manufacture of process equipment and extensive experience in the construction, commissioning and operation of chemical process plants, including those for the production of LIB cathode powders.

The market for LFP cathode material is anticipated to enjoy a strong run in the near future with analysts forecasting to grow strongly over the next decade.

In addition to core applications for ebus and stationary storage, heightened demand is expected through substitution (existing) and displacement (expanding) in applications that have traditionally been the domain of lead acid batteries.

This includes, but is not limited to, 12V and 48V applications for micro and mild hybrid powertrains, LSEV (low speed electric vehicles), datacentre UPS and 5G tower backup.

“We see partnering with SDL – which has a demonstrated track record in process development and high-tech process plant delivery – as a great opportunity,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“VSPC’s MoU with SDL provides Lithium Australia with a low-capital pathway to the commercialisation of VSPC cathode powders, in order to meet targets set by our other partners in China.

“We look forward to working with SDL, with a specific focus on the anticipated growth of LFP cathode materials for transport and energy-storage applications.”