Livium and Mineral Resources have agreed to extend their joint development agreement, funding additional optimisation activities for the LieNA® lithium extraction technology and setting the stage for a 50/50 joint venture.
- Additional Stage 1A activities agreed to optimise LieNA® commercialisation
- Funding secured via remaining convertible note balance and R&D tax rebates
- Convertible note maturity extended to 30 September 2025
- Successful completion triggers formation of 50/50 joint venture LieNA Pty Ltd
- Planned licensing model targets 8% gross product royalty with MinRes first-mover discount
Background and Progress
Livium Ltd (ASX: LIT) and Mineral Resources Ltd (ASX: MIN) have taken a significant step forward in the commercialisation of Livium’s patented LieNA® lithium extraction technology. Following the successful completion of initial pilot plant operations and demonstration plant engineering studies, the partners have agreed to undertake additional Stage 1A activities aimed at refining the commercial pathway and defining the preferred lithium product output.
This development marks a continuation of their joint development agreement (JDA), reflecting confidence in the technology’s potential despite tightening lithium market conditions since the partnership began.
Funding and Timeline Extension
The Stage 1A activities will be fully funded through the remaining balance of Mineral Resources’ convertible note and LieNA® R&D tax incentive rebates recently received by Livium. To accommodate this extended work program, the maturity date of the convertible note deed has been pushed back from 31 January 2025 to 30 September 2025, providing the necessary runway to complete optimisation efforts without shareholder dilution.
Joint Venture Formation and Commercialisation Strategy
Upon successful completion of Stage 1A, the convertible note held by Mineral Resources will convert into equity in a newly formed 50/50 joint venture entity, LieNA Pty Ltd, which will wholly own the LieNA® technology. This JV structure formalises the partnership and aligns incentives for commercial rollout.
The JV intends to license the LieNA® technology to third parties, targeting a headline gross product royalty rate of 8%. Mineral Resources, as the first mover, will benefit from a discounted royalty rate on licenses for its own projects. An initial licensing target is a semi-commercial facility that Mineral Resources may independently fund and operate, aiming to extract battery-grade lithium salts at commercial scale.
Strategic Implications and Market Context
Livium’s CEO Simon Linge highlighted the milestone nature of the Stage 1 activities and the strategic rationale for further optimisation amid evolving lithium market dynamics. The funding structure notably avoids dilution, preserving shareholder value while advancing commercial readiness.
Mineral Resources expressed enthusiasm about the technology’s demonstrated promise and the collaborative approach to unlocking its full commercial potential. The royalty licensing model could significantly expand Livium’s addressable market by capturing fees on lithium processed through any mine employing LieNA® technology, beyond direct operational involvement.
Looking Ahead
While the pathway is promising, the success of Stage 1A activities remains a critical milestone. Should the JV not proceed, Mineral Resources has options to recoup value via repayment mechanisms tied to the LieNA® technology valuation. The next phase will be closely watched by investors eager to see how this innovative lithium extraction technology scales and integrates into the broader battery materials supply chain.
Bottom Line?
The extended collaboration and funding reset set the stage for LieNA®’s commercial leap, but execution risks remain pivotal.
Questions in the middle?
- What specific lithium product will be selected as the preferred output from LieNA® technology?
- How will the JV’s licensing strategy impact Livium’s revenue and market positioning long term?
- What are the technical and commercial risks that could delay or derail Stage 1A completion?