Lithium Universe Raises $40K, Issues 56M Options, Advances Two Refineries

Completion of Capital Raise

Lithium Universe Limited (ASX, LU7) has successfully completed the second tranche of its share placement, issuing 2.5 million shares to Executive Chairman Iggy Tan. This tranche raised a modest A$40,000 following shareholder approval at the company’s December 16 general meeting. While the financial scale of this tranche is relatively small, it marks a key step in the company’s ongoing capital raising efforts to support its ambitious growth plans.

Listed Options Issuance

Alongside the share placement, shareholders approved the issuance of over 56 million listed options. These options, trading under the ASX code LU7OB, carry an exercise price of $0.008 and expire in August 2028. They were issued both to participants in the share placements and to 62 Capital, the lead manager for the capital raising. The options provide investors with a low-cost opportunity to increase their exposure to Lithium Universe’s future upside, reflecting confidence in the company’s strategic direction.

Strategic Focus on Lithium Refining

Lithium Universe is advancing two major lithium refinery projects in North America, aiming to address the continent’s critical shortage of lithium conversion capacity. The flagship project is a battery-grade lithium carbonate refinery in Bécancour, Québec, designed to produce up to 18,270 tonnes annually. This facility targets lithium iron phosphate (LFP) battery markets and leverages proven technology from the Jiangsu Lithium Carbonate Plant, promising efficient and timely deployment.

Expanding Footprint with Texas Refinery

Complementing the Québec refinery, Lithium Universe has launched a second refinery initiative in Brownsville, Texas. This project aims to create a binational refining platform to strengthen North American lithium supply chains. The Texas site offers strategic advantages including deep-water port access, competitive labour costs, and favorable permitting environments. The refinery’s design mirrors the Bécancour plant, enabling rapid deployment to serve nearby gigafactories and align with U.S. policy incentives such as the Inflation Reduction Act.

Innovative Silver Extraction Technology

Beyond lithium, the company is pioneering sustainable silver extraction from photovoltaic solar panel recycling. Utilizing advanced technologies acquired from Macquarie University, Lithium Universe employs Microwave Joule Heating Technology and Jet Electrochemical Silver Extraction to recover silver and silicon efficiently. This closed-loop recycling approach addresses growing solar panel waste and the soaring industrial demand for silver, reinforcing the company’s commitment to circular economy principles and environmental responsibility.

Looking Ahead

While the recent capital raise is a relatively small financial boost, it underscores ongoing shareholder support and positions Lithium Universe to continue advancing its innovative projects. The company’s dual refinery strategy and cutting-edge recycling technologies place it at the forefront of addressing critical supply chain challenges in the clean energy sector.