The Australian Renewable Energy Agency (ARENA) has announced $30 million in conditional funding for VSPC Pty Ltd (VSPC) to support the commercialisation of a new manufacturing process for lithium-ion battery cathode powder.
VSPC, a wholly owned subsidiary of Livium Ltd (ASX: LIT), plans to construct a 250-tonne-per-annum demonstration facility near its existing Brisbane operations.
ARENA stated that the project will allow VSPC to supply cathode powder samples to potential offtake partners and investors, with the goal of securing major customers for a future commercial-scale plant.
The initiative is expected to enhance cathode powder manufacturing by reducing costs, improving quality, minimising waste, and diversifying global battery supply chains.
VSPC’s process integrates solid-state and solution-phase synthesis techniques to produce lithium ferro phosphate (LFP) and lithium manganese ferro phosphate (LMFP) powders with enhanced control over product characteristics.
ARENA highlighted that this approach offers flexibility for various battery cell technologies.
ARENA CEO Darren Miller emphasised the importance of battery technology in the transition to renewable energy and underscored the potential impact of VSPC’s innovation.
“This project represents a potential breakthrough in cathode powder technology. If the project is successful, it could help catalyse competitive manufacturing of cathode powders and help diversify supply chains,” Miller said.
He added that as global demand for energy storage continues to rise, domestic advancements in cathode material production could position Australia as a key player in advanced battery manufacturing.
Livium Managing Director and CEO Simon Linge acknowledged ARENA’s support, stating that the funding will play a critical role in advancing battery materials commercialisation and establishing diversified LFP supply chains.
“The grant from ARENA represents a significant step forward for our battery materials commercialisation. This grant, which follows an extensive process, is expected to facilitate further strategic private capital to complete funding for the project,” Linge said.
