LU7’s $2.5M Raise Fuels Expansion as Silver Gains Critical Metal Status

Technological Leap in Silver Recycling

Lithium Universe Limited (ASX – LU7) has announced a significant breakthrough in its silver extraction technology, developed in partnership with Macquarie University. The company’s research demonstrated that precision-engineered sharp conical electrode tips dramatically improve silver recovery from solar panels, achieving up to 75% removal efficiency within three minutes. This design also ensures more uniform silver removal across the panel surface, reducing residues and preserving the adhesion between silver and aluminium components.

Equally notable is the process’s environmental and economic impact – an 83% reduction in acid consumption compared to conventional methods, which slashes chemical costs and reduces hazardous waste. The recovered silver boasts a high purity level approaching commercial 3N grade (99.88%), with a uniform nanocrystalline structure that enhances conductivity; ideal for premium electronics applications.

Strategic Expansion into North American Lithium Refining

Building on its flagship Bécancour lithium refinery project in Québec, LU7 has launched an expanded lithium refinery strategy with plans for a second facility at the Port of Brownsville Business Park in Texas. This location offers strategic advantages including deep-water port access, multimodal transport links, and proximity to the rapidly growing U.S. solar market. The Texas refinery aims to complement the Canadian operation, creating a binational platform that mitigates supply chain risks and leverages regional incentives.

The Brownsville site assessment confirmed its suitability for replicating the Bécancour refinery design, with minor adaptations for local weather conditions. LU7’s approach to replicating proven technology from its Jiangsu Lithium Carbonate Plant heritage reduces construction risks and operational uncertainties.

Collaborations and Commercialisation Efforts

LU7 has strengthened its commercialisation pathway by signing a Memorandum of Understanding with Taiwan’s RePV Tech, a leader in photovoltaic recycling. This partnership will integrate RePV Tech’s delamination process with LU7’s Microwave Joule Heating Technology and Jet Electrochemical Silver Extraction systems, enhancing recovery efficiency and process integration.

The company is also recruiting mechatronics and robotics expertise to support scaling and automation of its silver extraction technology, reflecting a focus on precision control and industrial adoption. Engineering designs for a modular demonstration plant are underway, with discussions ongoing with engineering firms experienced in industrial waste recycling.

Market Context and Financial Position

The recent recovery in battery-grade lithium carbonate prices; more than doubling over the past quarter; validates LU7’s counter-cyclical development strategy. This price rebound strengthens the economics of the Bécancour refinery and supports renewed engagement with spodumene suppliers and downstream customers.

To fund its lithium refinery and solar panel recycling projects, LU7 successfully completed a $2.5 million placement at a 2% premium to the 15-day volume-weighted average price. The company ended the quarter with $2.06 million in cash and is actively managing its capital to progress engineering and commercialisation milestones.

Regulatory and Industry Dynamics

LU7’s silver extraction technology gains added significance following the U.S. government’s historic classification of silver as a critical metal, underscoring the strategic importance of secure domestic supply chains. Meanwhile, China’s recent ban on lithium conversion technology exports highlights LU7’s competitive advantage in North America, where it holds proven process technology unaffected by these restrictions.

With global silver demand rising; driven by solar panel manufacturing, electrification, and clean energy technologies; and supply constrained by flat mine output, LU7’s innovations position it to capitalise on a growing market for recycled critical minerals.