Lithium Australia NL’s (ASX:LIT) wholly-owned subsidiary VSPC Ltd and Beijing Saideli Technology Incorporated Company Ltd (SDL) have signed a memorandum of understanding (MoU) to commercialise VSPC cathode material.
The MoU signed by VSPC and SDL will see the parties collaborate on a staged plan for VSPC to commercialise production of its LFP (lithium-ferro-phosphate) cathode material.
This includes the establishment of a supply chain for VSPC customers in China, as well as a joint feasibility study for LFP production and supply outside China using VSPC proprietary process technology.
SDL has considerable expertise 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.
LFP cathode material market
The market for LFP cathode material is forecast to grow strongly over the next decade.
In addition to core applications for ebus and stationary storage, significant demand is expected through substitution (existing) and displacement (expanding) in applications traditionally the domain of lead acid batteries; including but not limited to micro and mild hybrid powertrains, LSEV (low speed electric vehicles), datacentre UPS and 5G tower backup.
Low-capital pathway to commercialisation
LIT managing director Adrian Griffin said: “We see partnering with SDL – which has a demonstrated track record in process development and high-tech process plant delivery – as a great opportunity.
“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.”