ASX-listed battery metal player Lithium Australia is a step closer to the development of a 10,000 tonne per annum lithium ferro phosphate, or “LFP” manufacturing facility after its wholly-owned subsidiary VSPC appointed engineering and project delivery outfit Lycopodium to drive a definitive feasibility study, or “DFS” advancing the proposal towards reality.
The company said Lycopodium has put together a team of technical specialists to help advance its patented LFP cathode powder production process to ramp up production.
Since the conclusion of a 2021 pre-feasibility study, VSPC's DFS development operations have centred on producing samples for customer evaluation and mastering product pre-qualification criteria for the electric vehicle market and other segments.
Prior to the construction of the LFP manufacturing facility, VSPC enlarged the scope of the DFS to include an assessment of an early-stage, semi-commercial production facility to support product pre-qualification.
VSPC also owns a research and development facility and pilot plant in Brisbane and said completion of the LFP manufacturing facility would results in a significant increase in production capacity.
In parallel to the DFS, the company will press ahead with potential offtake discussions.
Lithium Australia says outside China, the lithium-ion battery industry has to-date favoured nickel and cobalt cathode chemistries. However, during the past 18 months there has been a shift in market focus with LFP-type lithium-ion batteries now staking a claim as the segment’s fastest-growing faction.
According to leading research consultancy Wood Mackenzie, LFP could become the dominant battery chemistry over nickel and cobalt formulations.
The company says with less than 1 per cent of LFP produced outside China, if successful its LFP project could position it as a leading manufacturer of the product.
According to Lithium Australia, the lack of major LFP manufacturing outside China creates numerous supply opportunities and its DFS will likely incorporate production in North America or Australia.
The last six months has seen VSPC take significant strides in advancing the plant’s DFS, with Lithium Australia's preliminary work providing the initial platform.
The company says the delivery of a robust DFS will ensure it is well positioned to receive additional funding and charge ahead with the project’s development.
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By Matt Birney
