Avenira has signed a non-binding MOU with Advanced Lithium Electrochemistry Ltd. (Aleees) to work towards the development of a Lithium Iron Phosphate (LFP) battery cathode manufacturing plant in Darwin using Avenira's Wonarah Phosphate Project. Taiwan-based Aleees is a globally recognised LFP battery material manufacturer and one of the few companies outside China with complete LFP cathode material manufacturing capability and patents for electric vehicle and stationary storage batteries. Under the MOU Avenira proposes to construct the LFP plant in the NT and use phosphoric acid feedstock from its advanced Tier 1 high-grade Wonarah Phosphate Project, south-east of Darwin.

Aleees, which has deep industry knowledge and an extensive list of intellectual property rights and patents, will grant licensing rights and offer certain operational, management and research and development support for the establishment and operation of the LFP Plants. The Avenira-Aleees MOU comes on the back of a three-way MOU with the Northern Territory Government, whereby the Northern Territory Government will work proactively with the partners to assist and advise where appropriate in relation to necessary infrastructure including water, energy, power, telecommunications, road, port and rail access and service requirements. LFP batteries are growing in popularity for electric vehicles and static storage due to their lower cost, longer life cycle, safety, thermal stability and fast charging capabilities compared to Lithium-Nickel-Manganese-Cobalt (NMC) batteries.

Avenira and Aleees are targeting the construction and commissioning of an initial 5,000-10,000 tonnes per annum LFP Plant by 2023/2024, (First LFP Plant) Avenira plans to replicate the First LFP Plant in 10,000tpa trains up to a potential 200,000tpa by 2032. The details of the phased capacity program should not be construed as production targets, as the Scoping study previously advised has not yet been completed to form the reasonable basis for Avenira to expect that it can extract commercially sufficient high grade phosphate from the Wonarah project for the LFP plant to achieve those phases.