PERTH (miningweekly.com) – The Northern Territory government has signed a memorandum of understanding (MoU) with Taiwanese company Aleees and ASX-listed Avenira to develop and operate the Territory’s first battery cathode manufacturing plant in Darwin.

The MoU maps out how the Territory government, Aleees and Avenira will work together to achieve final investment decision (FID) on a pilot facility, with FID anticipated early in 2023.

The Territory government will also work proactively with Aleees Group, Avenira and its supply chain partners to identify a suitable site in Darwin for the facility.

Once operational, the pilot facility will manufacture up to 10 000 t/y lithium-iron phosphate battery cathode material.

The MoU further supports the development of an up to 200 000 t/y manufacturing facility built in four phases, including the pilot plant, in Darwin over the next 10 years. The major facility will exclusively source phosphoric acid from Avenira’s Wonarah phosphate project in the Barkly.

“Increasing demand and the transition to renewable energy, battery storage and use of high technology products has resulted in global organisations looking to establish diversified, reliable and stable supply chains,” Chief Minister Natasha Fyles said.

“The project will position the Territory as the next Australian home of advanced manufacturing, develop new skills and jobs, as well as support our objective to achieve a A$40-billion economy by 2030.

“With the potential to create 1 000 jobs this project will benefit Territorians from the Top End to the Barkly with the manufacturing plant to be built in Darwin, which will exclusively source phosphate from the Wonarah phosphate project in the Barkly.”

Avenira executive chairperson Brett Clark said the MoU opened the door for Avenira to learn from Aleees about lithium iron phosphate battery cathode manufacturing technology and leverage this experience to optimise the production of phosphoric acid from the Wonarah project.

“The engagement of the Northern Territory government in the MoU is appreciated and we look forward to their assistance and guidance.”

It is estimated the project will initially create 100 jobs, growing up to 1 000 jobs and generating more than $4-billion in revenue annually once scaled to full production.