Lithium Australia (LIT) has made a conditional bid to acquire Brisbane battery cathode developer Very Small Particle Company Ltd (VSPC).
The proposed acquisition includes a decommissioned pilot plant for the production of complex metal oxides/phosphates for cathode production.
Perth-based LIT said in an Australian Securities Exchange announcement on 30 August that the plant incorporates the country’s “most advanced Li-ion battery-laboratory and testing facility, which can establish the quality, performance and reliability of cells produced using the VSPC technology”. The lab includes cathode coating equipment and cell production capacity.
LIT managing director Adrian Griffin said if the acquisition goes ahead, it would allow the firm “to participate in the efficient production and total utilisation of Li-ion batteries”.
“Recycling closes the loop to create a circular energy economy,” Griffin said. “At present, the missing link is the reintroduction of recovered metals into the global lithium supply chain.”
Griffin said cathode technology developed by VSPC “provides that missing link”. “The proposed acquisition would provide LIT with the opportunity to participate in the entire lifecycle of energy metals— positioning the company as a leader in the field of not just portable but also sustainable power.
LIT said the deal, reportedly worth around AUD7 million ($5.5m), is conditional on successful due diligence and acquiring a “minimum 75%” stake in VSPC.