Lithium Australia
Primary ticker: ASX:LIT
Stage of development: Development, Production
Primary minerals: Black Mass, Lithium metal phosphate (LFP, LMFP), Lithium phosphate, Lithium carbonate
Project to promote: Envirostream (Battery Recycling) in Victoria. VSPC (Battery Materials) in Queensland. LieNA (Lithium Chemicals) in Western Australia.
Project location: Australia
Website: www.lithium-au.com
Lithium Australia is a company listed on the ASX and is scaling up in the growing battery industry and focused on high value opportunities across the lithium value chain. We are currently focused on three divisions:
1. Battery Recycling:
Description: Australian industry leading recycling business, operating since 2017 and the primary focus of LIT due to the revenue and cash generating
Status: Battery supply is secured through exclusive recycling services agreements with global OEM’s, key commodity sales secured through black mass offtake with SungEel HiTech
Commercial: Owner operated with ~A$6.5m in revenue (FY24). Commercial model shift in Q3 FY24 resulted in Q4 FY24 revenues of A$2.5m and an underlying EBITDA of A$0.5m
2. Lithium Chemicals:
Description: Novel technology which improves the recovery of lithium from spodumene mines (50% increase) and allows production by miner of a lithium salt rather than spodumene concentrate
Status: Joint development agreement secured with Mineral Resources (ASX: MIN), which free-carries LIT for current development activities towards formation of a 50:50 JV – This JV will issue licenses
Commercial: Pre-revenue and will be commercialised via licenses from JV with potential to generate >US$20m in annual royalties from one license on a 100% JV basis
3. Battery Materials:
Description: Developer of lithium ferro phosphate (LFP) cathode materials with 20+ years of nanotechnology experience – LFP is quickly becoming the dominant chemistry for lithium-ion batteries due to cost and safety characteristics however China dominates current supply
Status: Operating pilot plant in Queensland and joint development agreement being pursued to scale up capacity towards securing binding offtake for commercial expansion
Commercial: Pre-revenue but potential to generate >US$300m in annual revenue from one commercial facility on a 100% owned basis
Cash: AUD5.4
Debt: AUD4.2
Major shareholders:
BNP Paribas – 8.3%
Lind – 3.6%
Adrian Griffin – 2.1%
Citicorp – 1.7%
BNP Paribas – 1.3%
Management ownership < 1%
Financials
Management Profile
Simon Linge, Managing Director / CEO
Simon is Managing Director & CEO for Lithium Australia, a battery technology business providing critical materials to a circular battery industry. Simon’s early career was with BHP before joining BlueScope Limited, the leading Australian Head Quartered, steel business where he held senior leadership roles, across ANZ, Asia Pacific and the USA. Simon’s last role with BlueScope was President ASEAN, leading the $1.5bn business in seven countries.
Simon then led Bradken Limited, as Managing Director & CEO, a global metals manufacturer where he repositioned the company to deliver significant profitable growth. Simon has led Lithium Australia since January 2023, and has positioned three of its technologies, Lithium Chemicals, Battery Recycling and Battery CAM Materials for scale and growth.
What is your rationale for taking part in 121 Mining Investment?
Seeking investors for Lithium Australia (listed), and asset level scale up of Battery Materials and Battery Recycling. We are not looking for advisers, as we are well covered.
What recent news would you like to highlight to investors attending?
05 Jun – Battery Recycling: Exclusive Agreement with Volvo to recycle their batteries
13 Jun – Battery Recycling: Black Mass Offtake Agreement with SungEel HiTech
11 Jul – Battery Recycling: Maiden Operating Cash Profits
19 Jul – Lithium Chemicals: Completion of piloting with MinRes
30 Aug – Corporate: Release of FY24 Sustainability Report
04 Sep – Battery Recycling: Exclusive Agreement with BYD to recycle their batteries
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What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Battery Recycling: Sustain positive operating cashflows at current volumes.
Battery Recycling: Finalise joint development agreement and funding with SungEel HiTech.
Battery Recycling: Secure further lithium-ion battery recycling agreements with tier 1 partners.
Battery Materials: Secure government funding for demonstration plant
Battery Materials: Offtake development including production of LFP / LMFP samples.
Battery Materials: Continue raw materials strategy to support commercial scale volumes.
Lithium Chemicals: Complete production of final lithium phosphate product.
Lithium Chemicals: Finalise engineering study report to support a demonstration scale plant.
6 Months:
Battery Recycling: Grow volumes of lithium ion batteries for recycling.
Battery Recycling: Finalise joint development agreement and funding with SungEel HiTech.
Battery Recycling: Secure partners for growth.
Battery Materials: Secure partners for growth.
Lithium Chemicals: Form joint venture with MinRes.
12 Months:
Battery Recycling: Financial Investment Decision on a scaled recycling facility.
Battery Recycling: Increased profitability from increased volumes.
Battery Materials: Financial Investment Decision on the demonstration facility.
Lithium Chemicals: Issue first licence from JV to MinRes.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Multiple Technologies: Securing partners for growth
What do you think makes your company such a compelling investment?
What are the top 3 key investor takeaways?
Near term aspirations seek to transition the company into the development phase
Company has an experienced and well credentialled board and management
The company has access to the growing lithium battery market through three technologies