Livium Ltd (ASX: LIT) has announced the formation of a 50:50 Joint Venture (JV) with Mineral Resources Ltd (ASX: MIN) for its LieNA® technology, following the successful completion of Stage 1A Activities under the Joint Development Agreement. Livium aims to lead and enable the global transition to sustainable lithium production. The Company operates Australia’s market leading battery recycler, Envirostream, and aims to commercialise patented lithium extraction technology (LieNA®).
The JV entity, LieNA Pty Ltd, previously a wholly owned subsidiary of Livium, will hold the LieNA® intellectual property and seek to commercialise the lithium processing technology through the issuance of licenses to third-parties. According to the announcement, key documentation has been executed, including a Shareholders Agreement which defines the JV’s structure, governance, and decision-making processes. Following execution of these documents, MinRes will issue a Conversion Notice and LieNA Pty Ltd will issue shares to MinRes, equal to the number held by Livium.
The parties have agreed to waive the remaining drawdown by MinRes of A$281k related to the original A$4.5m Convertible Note, with sufficient funding available for the JV. While the LieNA® Demonstration Plant is the next step for commercialisation, the parties acknowledge that current market conditions do not support its economic construction and funding. Therefore, extensions to the prior agreed deadlines have been agreed to allow for monitoring of market dynamics and exploration of alternate partnership and monetisation opportunities.
Livium and MinRes each hold a 50% interest in LieNA Pty Ltd, with the JV targeting a headline gross product royalty rate of 8% for licensing the LieNA® technology. The JV intends to initially license the technology to a semi-commercial facility, the LieNA® Demonstration Plant, which MinRes can elect to independently fund, develop, and operate.
