Lithium Australia (ASX:LIT) has completed its due diligence for the acquisition of advanced cathode material producer, the Very Small Particle Company (VSPC).
VSPC owns proprietary processes for the production of lithium ion battery cathode material, a comprehensive pilot plant, and an advanced laboratory and testing facilities.
The VSPC technology is adaptable to the production of a wide range of cathode materials.
Lithium Australia is investigating the production of cathode materials from hard-rock minerals using hydrometallurgical front-end processes including the SiLeach® and LMax® processes.
Completion of the transaction remains subject to regulatory approval, including shareholder approval.
How the VSPC technology works
The VSPC technology commences with cathode metals in a solution from which the cathode nanoparticles are precipitated.
The commencement of the process is compatible with the solutions produced during the processing of hard-rock minerals to recover lithium carbonate, or lithium hydroxide.
The direct production of cathode materials from such solutions potentially removes two process steps involved in the manufacture of cathode materials, resulting in a revolutionary process which capitalises on the value-add generated by progressing from lithium chemicals to cathode materials.
The VSPC technology provides a simple and cost-effective means of producing such materials within an environment of superior quality control.
Engineering studies on SiLeach® and LMax®
Lithium Australia is close to the completion of engineering studies on processing plants for both the 100% owned SiLeach® process and the LMax® process for which it has exclusive rights for in Western Australia.
It anticipates a commitment to construct such plants, nominally sized at an output of 2500 tonnes per annum lithium carbonate equivalent early in the new year.
Lithium Australia shares are trading up 5% intra-day to $0.185.