Centrex’s (ASX:CXM) wholly owned subsidiary Agriflex has entered into a non-binding 24-month term memorandum of understanding (MoU) with Lithium Australia (ASX:LIT) to pursue growth opportunities in the lithium ferro phosphate (LFP) battery market.
The MoU represents a potential pathway to the LFP battery market through the supply of phosphoric acid from Agriflex’s Ardmore Phosphate Mine to Lithium Australia, for the purpose of production of LFP or lithium manganese ferro phosphate (LMFP).
Lithium Australia Managing Director and CEO Simon Linge says the signing of an MoU is an ‘exciting’ progression for the company to commercialise on its LFP and LMFP technologies.
“The MoU between Lithium Australia and Centrex highlights our commitment to building a battery supply chain domestically in Australia, which can provide global battery manufacturers an alternative supply source for LFP and LMFP,” Linge says.
Centrex Managing Director and CEO Robert Mencel says the Ardmore Phosphate Mine possesses significant potential to capitalise on several lucrative market verticals due to its high-grade phosphorus and low-impurity content.
“With respect to producing high-quality and low-impurity phosphoric acid suitable for the LFP market vertical, we believe Ardmore has a substantial competitive advantage to its peers both domestically and globally,” Mencel says.
Centrex, which has a market capitalisation of $4.69 million, says the MoU envisages the construction of a demonstration plant of LFP or LMFP by Lithium Australia, which will potentially be in Queensland.
The demonstration plant will have an estimated capacity of 250 tonnes per annum (tpa) of LFP or LMFP.
Once the demonstration plant is in operation, Lithium Australia will seek to construct a commercial plant with an estimated capacity of 25,000tpa LFP or LMFP.
Agriflex and Lithium Australia will provide support to the MoU and work towards executing a conditional binding agreement for phosphate offtake.
Lithium Australia will provide technical input and testing of samples from Agriflex, while Agriflex will undertake a study to produce phosphoric acid in Queensland and provide Lithium Australia with phosphate product specifications.
Centrex is focused on securing a sustainable agriculture future in Australasia through exploration and development of its Ardmore Phosphate Project and Oxley Potash Project.
Lithium Australia is focused on lithium production to enable the global transition. The company operates a battery recycler, produces critical battery material lithium ferro phosphate and has developed a patented lithium extraction technology.
Write to Aaliyah Rogan at Mining.com.au
Images: Centrex
