Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) is poised for a transformative year in 2024, fuelled by ambitious plans for its recycling operations and patented technologies.
In a message to shareholders, LIT managing director and chief executive officer Simon Linge said the company strengthened its position as Australia’s leading battery recycling business in 2023 when it focused and made progress in four key areas:
- Developing safer systems of operation;
- Securing higher volumes of lithium-ion batteries (LIB);
- Adjusting its commercial model to ensure pricing reflected service levels; and
- Optimising its operating model to improve efficiencies.
In the note, Linge outlined the company's progress in 2023 and unveiled the roadmap for the year ahead.
Year of solid growth and strategic partnerships
The past year saw LIT achieve significant milestones, solidifying its position as a leader in the battery recycling space.
Recycling volumes surged, with large-format and small-format LIBs seeing 80% and 41% growth, respectively.
This surge reflects the company's focus on securing future battery supply through strategic partnerships and commercial agreements.
“We have worked with customers to change the approach to pricing and service, with a view of securing longer-term contracts,” Linge said.
“We will continue to focus on this area in the year ahead.”
Safety remained a top priority, with advancements in both infrastructure and culture.
Operational efficiency was also prioritised, with "lean manufacturing" principles implemented to optimise processes and equipment.
Operational and equipment improvements in progress.
On the technology front, partnerships played a key role.
A landmark joint development agreement with Mineral Resources will see LieNA®, LIT's novel lithium extraction process, progress towards commercialisation through the development and operation of a pilot plant as well as an engineering study for a plant.
Similar agreements are being pursued for the company's lithium ferro phosphate (LFP) and lithium manganese ferro phosphate (LMFP) battery material products, which offer a promising alternative to existing Chinese manufacturers.
2024: A year of execution and expansion
Looking ahead, LIT will focus on executing its strategy across both its recycling and technology arms.
For its recycling business, the company aims to:
- Grow LIB recycling volumes - Expanding customer base and securing long-term supply agreements are key to maintaining its leading position in Australia;
- Expand footprint - Ensuring national reach to maintain market leadership; and
- Secure long-term supply and offtake agreements - Locking in future feedstock and ensuring efficient operations.
LieNA® will see major advancements in 2024, with the joint development scope with Mineral Resources taking centre stage.
The completion of a preliminary engineering study for the demonstration plant and the agreed piloting activities are crucial steps towards commercialisation, where the 50:50 joint venture hopes to earn fees from licensing the technology.
The LFP/LMFP technology will also see continued development, with off-take agreements, raw material supply agreements, and further engineering studies for a demonstration facility on the horizon.
“To enable this, we will be leveraging assistance and support from all levels of government,” Linge added.
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