© Lithium Australia General | May 10, 2019
Lithium Australia forms alliance with Chinese battery producer
Lithium Australia has signed a letter of intent with Chinese battery producer DLG Battery Co. Ltd. to establish a 50/50 jointly owned business for the supply and sale of DLG lithiumion batteries (LIBs), packs and modules in Australia.
The companies are also forming a technology alliance that will fast-track the commercialisation of VSPC Ltd's patented cathode powders for use in DLG batteries. Lithium Australia has taken a major step forward commercially in its aim of becoming a major provider of battery materials and recycling solutions to the fast growing energy storage industry. As one of the major battery manufacturers in China, DLG has six development and manufacturing facilities there, as well as sales and support offices in the United States and Europe. The Chinese company is a developer and manufacturer of cylindrical LIB cells, packs and systems, producing not only lithium-iron-phosphate ('LFP') and lithium-nickel manganese-cobalt ('NMC') battery cell types but also battery-management-system and pack technology. DLG has been working with the Lithium Australia to test (in China) LFP cathode powders produced by VSPC Ltd (a wholly owned subsidiary of Lithium Australia) at its pilot plant in Brisbane, Australia. DLG used the VSPC powders to manufacture commercial LFP cells in China. Together, DLG and Lithium Australia have identified constraints in the delivery of LIBs into the Australian supply chain, and they see an exciting business opportunity in rectifying those supply difficulties. Under the LoI, DLG and the Company intend to incorporate 'Lithium Australia DLG' as a 50:50-owned business, the aim of which is to ameliorate supply chain constraints for LIB batteries, packs and modules entering the Australian market. The new Lithium Australia DLG business aims to improve the availability of LFP and NMC LIBs to equipment manufacturers and consumers in the Australian market. And also manufacture packs and modules within Australia, and to produce an Australian DLG/VSPC battery for both local and global markets.