Livium Ltd (ASX:LIT, OTC:LMMFF) continues to progress its collaboration with Mineral Resources Ltd (ASX:MIN) to evaluate the preferred commercialisation pathway for the company’s patented LieNA® lithium extraction technology.
The parties have agreed to additional Stage 1A activities under the JDA to optimise the commercialisation pathway for LieNA® and define the preferred lithium product for a LieNA® development.
Activities completed to date (Stage 1 activities) include the development and operation of a pilot plant, successful refinement of high-quality lithium phosphate and completion of a demonstration plant engineering study — a key milestone in the collaborative development of the LieNA® technology.
Considering current lithium market conditions, Livium has agreed with MinRes to undertake additional activities to optimise the development of the LieNA® technology.
This includes an assessment of alternate commercialisation pathways and the selection of the preferred lithium product for the LieNA® development, including the potential to produce a battery-grade lithium carbonate.
Stage 1A activities will be fully funded through the remaining balance of MinRes’ convertible note and LieNA® R&D tax incentive rebates received on January 8, 2025.
Read more: Livium awarded A$1.7 million in research and development tax incentive rebates for its subsidiaries
Significant milestone achieved
"Satisfactory completion of Stage 1 activities represents a significant milestone for LieNA®,” Livium CEO and managing director Simon Linge said.
“Whilst lithium market conditions have tightened since our partnership with MinRes commenced, the progress made in Stage 1 activities has given Livium and MinRes the confidence to undertake further work to optimise the commercialisation pathway.
“Funding via the remaining balance of MinRes’ convertible note and LieNA® R&D tax incentive rebates allows the Stage 1A activities to advance without any dilutionary impacts for shareholders."
A MinRes spokesperson said, “What we have seen Livium deliver as part of the Stage 1 piloting activities has been very positive for the LieNA® technology.
"We are excited to continue our partnership with Livium throughout Stage 1A activities under the adjusted JDA to help us understand the technology’s potential breadth and optimise the development and commercial pathway.”
LieNA® joint development agreement
Livium’s LieNA® extraction technology enhances lithium recovery from fine and low-grade spodumene waste, potentially increasing yields by up to 50%.
Under the JDA, MinRes has solely funded the $4.5 million development of a pilot plant and engineering study for a demonstration plant through a convertible note. MinRes provided raw materials at no cost while Livium contributed its LieNA® technology and managed production processes and studies.
If MinRes converts the note into equity, a joint venture will be formed, with equal ownership (50/50) of LieNA Pty Ltd, which holds the LieNA® technology.
The JV plans to license LieNA® technology to third parties at a target 8% gross product royalty rate, enabling Livium to benefit from all tonnage processed using LieNA®.
Upon successful completion of JDA activities, MinRes can independently fund, develop and operate a semi-commercial plant under a discounted licence, recognising MinRes’ first-mover advantage.
The plant will scale lithium extraction to commercial levels, applying the licence to MinRes’ current and future projects.