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Lithium Australia focused on growth

13 December 2022 10:15
ASX: LIT

Lithium Australia have entered into a binding agreement for the sale of its 20 per cent interest in the Greenbushes South Lithium project for $1 million in Galan Lithium shares and $2 million cash.

It comes as the company continues its transition away from exploration and commits its focus to growing a nation-leading recycling and cathode powder platform.

Lithium Australia moved to commercialise its wholly owned subsidiaries in August this year, with both Envirostream and VSPC already standing at the forefront of the nation’s emerging lithium-ion industry.

Envirostream is Australia’s first recycling company to safely transport, store and process end-of-life batteries locally, while VSPC see a clear path to production as one of the few entities outside of China able to produce cathode powders at high enough quality to meet demand.

The company will retain benefits of exploration, holding both its shares in Galan and other exploration interests, including Charger Metals, who stand greenlit to fire up twinning lithium campaigns.

And if Galan strike it big, Lithium Australia will hold the conditional first right of refusal over lithium products produced from Greenbushes.

The company said its primary focus was fixed on the growth of its battery recycling division and commercialisation of cathode powders.

“A key risk for LFP production is the availability of lithium chemicals, which have the potential to become scarce as demand increases for EVs in the future. Importantly, this Agreement provides the Company with rights for lithium chemicals from the Greenbushes South Lithium Project,” chief financial officer Stuart Tarrant said.

“Converting the prior investment into listed equity ensures that any upside generated by Galan for the Greenbushes South Lithium Project can be more readily realised should there be an opportunity to advance a core project of the Company.”

LIT’s Australian Stock Exchange-listed share price was trading at 4.6c today (10.11 am UTC+ 8 hours).

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