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  • Lithium Australia's (LIT) says the results of a pre-feasibility study affirm the "veracity" of its subsidiary's lithium iron battery powder production chain
  • LIT affirmed results from the study demonstrated "robust project economics" for the manufacture of the spin-off company's LFP cathode powder used in lithium iron batteries
  • The PFS considered three jurisdictions — Australia, Vietnam and India — for production before concluding a production plant in India would likely be the best financial outcome
  • According to findings from the study, production could reach a capacity of 10,000 tonnes per annum over a three year period to reach capacity in 2026
  • Lithium Australia is up a solid 13.6 per cent to trade at 12.5 cents per share

Lithium Australia's (LIT) says the results of a pre-feasibility study affirm the "veracity" of its subsidiary's lithium iron battery powder production chain.

The wholly-owned subsidiary, VSPC, develops LFP-based cathode powders or, lithium iron phosphate batteries and derivatives, as well as LMFP cathode powders.

Lithium Australia spoke highly of the prefeasibility study (PFS) for the project, advising it confirms "robust project economics" for the manufacture of VSPC's LFP cathode powder.

The PFS considered three jurisdictions — Australia, Vietnam and India — for production.

According to findings from the PFS, production could reach a capacity of 10,000 tonnes per annum over a three-year period by 2026.

It also indicated securing a production plant in India would be the best financial outcome, with a net present value of US$253 million (approximately A$330 million) and an internal rate of return of 33 per cent.

Further major indicators resulting from the PFS include annual LFP sales revenue of US$410 million (about A$536 million) and earnings before interest, taxes depreciation and amoritisation of US$66 million (roughly A$86 million) per annum.

The company also cited opportunity to become a secure supply chain producer outside of China, reporting that only two per cent of the global LFP cathode production originates from outside the country.

In terms of next steps, Lithium Australia said it will look to completing a business case for the preferred Indian plant option, engage an engineering firm for the definitive feasibility phase and confirm project location.

Lithium Australia is up a solid 13.6 per cent to trade at 12.5 cents per share at 11:36 am AEST.

LIT by the numbers
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