Livium and Mineral Resources have agreed on the next steps for the commercialisation of the LieNA technology.

This development follows the completion of Stage 1 activities, which included the operation of a pilot plant and a demonstration plant engineering study.

The companies are now focusing on optimising the LieNA technology, given the tightened lithium market conditions.

The additional activities, termed Stage 1A activities, will explore alternative commercialisation pathways and select a preferred lithium product, potentially producing battery-grade lithium carbonate.

These activities will be funded through MinRes' convertible note and LieNA R&D tax incentive rebates received on 8 January 2025.

To facilitate Stage 1A activities, MinRes and Livium have amended the joint development agreement (JDA), extending the Convertible Note Deed maturity date to 30 September 2025.

Upon completion, MinRes' convertible note will convert into equity in a new JV, LieNA Pty Ltd, with both companies holding equal stakes.

LieNA, currently a wholly owned subsidiary of Livium, will wholly own the LieNA technology.

Livium CEO and managing director Simon Linge said: "Satisfactory completion of Stage 1 Activities represents a significant milestone for LieNA.

“Whilst lithium market conditions have tightened since our partnership with MinRes commenced, the progress made in Stage 1 Activities has given Livium and MinRes the confidence to undertake further work to optimise the commercialisation pathway.

“Funding via the remaining balance of MinRes’ convertible note and LieNA R&D tax incentive rebates allows the Stage 1A Activities to advance without any dilutionary impacts for shareholders.”

Upon completion of Stage 1A Activities, the JV plans to license the technology to a semi-commercial facility that MinRes may independently fund, develop and operate.

The larger plant will focus on extracting lithium salt at a commercial scale, with royalties payable by MinRes at a discounted rate due to its first-mover advantage.

If Stage 1A activities are unsuccessful, and MinRes opts not to convert to equity, the JV will repay MinRes 50% of the LieNA technology's value.

The JV aims to license the LieNA technology to third parties, targeting a gross product royalty rate of 8%.

This model could significantly expand Livium's market reach by capturing fees on all tonnage processed using the technology.