Lithium Australia’s Share Price Climbs on Account of Mine Waste

Lithium Australia NL [ASX:LIT] announced yesterday that it has successfully refined lithium phosphate (LP) suitable for the direct generation of lithium-iron-phosphate (LFP) — used in making lithium-ion batteries (LIBs).

The green energy frenzy that seems to be approaching, means using mine waste to produce high-quality lithium-ion batteries is becoming a reality.

At the time of writing, Lithium Australia’s share price is trading at 8.5 cents, up 3.66% on top of yesterday’s initial 6.41% increase.

But a spike in share price after a big announcement, such as a company’s encouraging lithium refining process, can naturally make a stock more sensitive to shifts.

And when it comes to lithium, ideally shareholders want a stock with the best chance of rising gradually over time…

That’s why Money Morning contributor Sam Volkering lays out his research for why lithium investors could potentially find lots of opportunities in the years to come. Read more about it here for free.

Lithium Australia’s share price helped by lithium refining news

The refinement process is completed through the company’s SiLeach Gen-2 Pilot plant, which is then further refined through a proprietary purification process.

The new proprietary lithium purification process results in a product with higher purity than ever, attained through its VSPC cathode power technology.

LIT reports that batteries made from the company’s LIBs demonstrated ‘outstanding potential’.

The company also reported that, when combined, SiLeach and VSPC cathode production reduced the number of processing steps needed to make battery precursors, as well as eliminates the need for high-purity lithium carbonate or hydroxide (a very technically-challenging step).

This has some very promising effects — firstly, it reduces the costs of production of battery components, and it also keeps the green environmentalists happy by decreasing LIT’s carbon footprint.

Once the lithium phosphate is refined, its converted into cathode material and lithium-ion battery cells for testing at the VSPC facility in Brisbane.

Lithium Australia has set a goal to develop both a sustainable and ethical energy-metal cycle.

From here, using these chemicals, Lithium Australia is focused on advancing the lithium-ion battery industry.

The last step will be the recycling and repurposing of used batteries and e-waste.

Lithium Australia’s sustainable 2019 outlook

LIT’s Managing Director, Adrian Griffin, commented on the outlook of Lithium Australia in the battery sector.

Process efficiency is the key to cost reduction in the battery industry. We have hit the nail on the head using waste material as feed, and by reducing the number of processing steps required to produce high-quality battery components.

Collaborative development with our technology partner ANSTO Minerals continues to deliver outstanding results for the company. Our processing technologies also have great potential for the lithium brine industry, and we look forward to collaboration in that sector.’

This looks encouraging for LIT’s share price, but investors will have to wait for the development and efficiency of these new processing techniques to really see the rewards reflected in the share price.


Ryan Clarkson-Ledward,
For Money Morning

PS: Are you interested in lithium stocks like Lithium Australia NL [ASX:LIT], but don’t know how to start? Our free investor report could help. Learn more about lithium stocks here for free.

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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