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Avenira (ASX:AEV) signs MoU to develop LFP cathode plant in NT

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ASX:AEV      MCAP $29.74M
21 September 2022 11:58 (AEDT)

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Avenira (AEV) has signed a memorandum of understanding with Advanced Lithium Electrochemistry (Aleees) and the NT Government to develop a lithium iron phosphate (LFP) cathode plant.

The non-binding deal will see the parties leverage Avenira’s Wonarah phosphate project to develop an LFP battery cathode manufacturing plant in Darwin.

The Northern Territory Government’s role will be to assist and advise on the necessary infrastructure including water, energy, power, telecommunications, road, port and rail access, and service requirements for the proposed plant.

According to the NT Chief Minister, Natasha Fyles, the project would create 1000 jobs and represent a “significant economic and strategic opportunity” for the territory.

“The project will position the Territory as the next Australian home of advanced manufacturing, develop new skills and jobs, as well as support our objective to achieve a $40 billion economy by 2030,” Ms Fyles said.

Aleees, a global manufacturer of LFP batteries, is reportedly one of the few companies outside China with complete LFP cathode material manufacturing capability and owns more than 120 exclusive patents with customers from a number of countries.

Avenira Executive Chair Brett Clark said the company planned to leverage Aleees’ capabilities and expertise.

“This MoU opens the door for Avenira to learn from Aleees about LFP battery cathode manufacturing technology and leverage this experience to optimise the production of phosphoric acid from the Wonarah project and develop downstream assets to produce Australia’s first LFP pre cursor cathode material,” Mr Clark sad.

The companies will develop the plant towards a phased capacity program, with phase one producing 5000 to 10,000 tonnes per annum in 2023/24. This could later be expanded to 200,000 tonnes per annum in 2032.

Avenira has engaged Bechtel to perform a scoping study of a battery-grade phosphoric acid plant and an LFP powder plant, which will both source phosphate from the company’s Wonarah deposit.

AEV shares were up 30 per cent to trade at 1.3 cents at 11:54 am AEST.

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