Australian lithium producer Alliance Mineral Assets has signed an agreement with a Chinese producer of engines for electric vehicles (EVs) that paves the way to jointly produce and sell battery-grade lithium hydroxide.
Alliance said the non-binding memorandum of understanding with Jiangxi Special Electric Motor is to develop the terms on which the parties will cooperate in the 50-50 joint venture.
The partnership would see the companies move into the downstream lithium products market within the next six to 12 months.
Alliance will export spodumene from its Bald Hill operation to Jiangxi, which will then process the material at the plant in China’s Jiangxi Province into lithium hydroxide.
The partners will then sell the lithium hydroxide to third parties, with Alliance and Jiangxi to equally share in the sales after recovering each party’s respective mining and conversion costs.
“The hydroxide joint venture provides for a rapid, low risk entry into downstream production and sales of battery-grade lithium products,” Alliance managing director Mark Calderwood said.
