KALGOORLIE (miningweekly.com) – ASX-listed Lithium Australia has struck a joint development agreement with fellow-listed Mineral Resources (MinRes) for the development of the LieNA disruptive lithium extraction technology.

Under the agreement, MinRes will sole fund the development and operation of a pilot plant and an engineering study for a demonstration plant at a budgeted cost of up to A$4.5-million. The company will also supply the required raw materials to support the extraction process, at no cost.

Lithium Australia, for its part, will contribute its patented technology which has the potential to enhance lithium extraction yields by up to 50% over current market performance, and will manage the pilot plant’s production process.

On successful completion of the pilot plant operations and engineering study, MinRes’ convertible note will convert into equity in a new joint venture (JV) between MinRes and Lithium Australia. Lithium Australia and MinRes will each have a 50% interest in the JV entity, which will wholly own the LieNA technology going forward.

In a statement on Monday, Lithium Australia said that the JV plans to licence the LieNA technology to third parties at a target headline gross product royalty rate of 8%. The royalty model materially expands Lithium Australia’s addressable market as it has the potential to capture a fee on all tonnage processed via any mine utilising the LieNA technology.

The JV will initially license the LieNA technology to a larger demonstration plant which MinRes can elect to independently fund, develop and operate. The larger plant will aim to extract lithium salt at a commercial scale under the licence. The licence will apply to current and future projects of MinRes and the royalty payable by MinRes under the licence is based on a discount to the headline royalty rate in acknowledgement of MinRes’ first mover position.

“We are thrilled by the formation of a new partnership with MinRes, one of Australia’s largest and most prominent mining companies. MinRes is the perfect partner to complement our leading lithium extraction technology, given its extensive owned operations and strategic movement downstream into the battery materials sector,” said Lithium Australia CEO Simon Linge.

“Securing a development partner is also noted as a significant step within Lithium Australia’s recently released roadmap and serves as a powerful validation of our patented technology. We are excited by the future opportunity to license our proven high-value technology to all existing and new lithium mines across Australia and the rest of the world.”