PERTH (miningweekly.com) – ASX-listed Avenira has revealed more details around the memorandum of understanding (MoU) with lithium iron phosphate (LFP) battery manufacturer Advanced Lithium Electrochemistry (Aleees) to potentially develop an LFP battery cathode manufacturing plant in Darwin, using Avenira’s Wonarah phosphate project.

Under the MoU, Avenira is proposing to construct the LFP plant in the Northern Territory, and use phosphoric acid feedstock from its Wonarah project.

Aleees will grant licensing rights and offer certain operational, management and research and development support for the establishment and operation of the LFP plants.

“Aleees is a world-class partner to be assisting us on this journey. Aleees brings its deep knowledge of LFP cathode manufacturing to Avenira’s world-class deposit of high-grade phosphate at Wonarah. This is a perfect demonstration of parties working together to deliver high value downstream processing solutions and value to our stakeholders,” said Avenira executive chairperson Brett Clark.

Under the terms of the MoU, Aveneria will pay Aleees $5-million in two tranches as a downpayment, and will pay a royalty of $1.5/kg of LFP cathode product between 0 t/y and 30 000 t/y, a $1.25/kg royalty of product between 30 000 t/y and 50 000 t/y, and a $1/kg royalty on product over 50 000 t/y.

Under the management agreement, Avenira will, with Aleees, operate and maintain the LFP plants for a period of 20 years, with Aleees team members also granted 220-million performance rights in Avenira, subject to shareholder and ASX approvals.

The two companies are targeting the construction and commissioning of an initial 5 000 t/y to 10 000 t/y plant by 2023/24, and will replicate this plant in 10 000 t/y trains up to a potential 200 000 t/y by 2032.

The Northern Territory government also inked an MoU with the two companies, vowing to work proactively with the partners to identify a suitable site in Darwin for the facility, and to work towards a final investment decision on the pilot facility in early 2023.