Livium Ltd (ASX: LIT), headquartered in Kew, Victoria, is an advanced battery materials company focused on enabling sustainable lithium production and recycling. Founded in 2007, the company operates Australia’s leading battery recycling business and is a pioneer in LFP cathode material production. Livium has also developed a patented lithium extraction technology (LieNA®), positioning it as a key player in the global transition to sustainable battery supply chains. By integrating battery recycling, lithium processing, and cathode material production, Livium aims to strengthen Australia’s role in the global lithium-ion battery industry. Currently, the company’s shares are trading at 1.4 cents per share.

ARENA Grant Validates Livium’s Technology

The ARENA grant agreement follows an extensive due diligence process, including an independent technical assessment of Livium’s LFP production technology. The funding will support the detailed design, construction, commissioning, and operation of the demonstration plant, allowing Livium to scale up its proprietary “RC Process” for LFP and LMFP (lithium manganese ferro phosphate) production.

The LFP demonstration plant will operate for two years, during which Livium aims to secure binding offtake agreements with major battery and EV manufacturers. This step is critical in transitioning from pilot-scale production to full commercialisation.

ARENA CEO Darren Miller highlighted the project’s potential to establish competitive manufacturing of cathode powders in Australia, reducing supply chain reliance on China and positioning the country as a leader in battery material innovation.

Scaling Up LFP Production for Global Markets

Livium’s patented RC Process enables the production of high-performance LFP and LMFP cathode powders, using a flexible range of raw material inputs. The process has already undergone testing by leading battery technology firm NOVONIX, which confirmed that Livium’s LFP materials demonstrate superior fast-charging capacity and long-term stability compared to market-leading alternatives.

The LFP demonstration plant is a key step toward commercial-scale production, with Livium planning an initial 25,000 tpa facility. At full capacity, this facility could generate annual revenues of ~US$319 million, assuming an average LFP price of ~US$12.75/kg.

Global demand for LFP cathode materials is increasing, driven by the rapid adoption of lithium-ion batteries in EVs and energy storage systems (ESS). The market is expected to continue expanding as manufacturers prioritise cost-effective, long-cycle-life battery chemistries like LFP over more expensive alternatives such as nickel-manganese-cobalt (NMC) cathodes.

Funding and Strategic Partnerships

While the ARENA grant covers 50% of the total $60 million project cost, Livium is seeking strategic investment to secure the remaining capital. The company has engaged financial advisors to coordinate discussions with potential investors, industry partners, and financiers to close the funding gap ahead of a Final Investment Decision (FID).

Livium is also in advanced discussions with over 20 potential offtakers, including battery manufacturers and EV supply chain partners in the US, Europe, South Korea, Japan, and India. Several parties have already received product samples, and non-binding MOUs have been signed, demonstrating market interest in Livium’s technology.

The LFP demonstration plant will provide customers with commercial-scale product samples and evidence of continuous high-quality manufacturing, which is a critical requirement for securing long-term supply agreements.

Positioned for Growth in the Battery Materials Market

Livium’s ability to establish a competitive, locally produced LFP supply chain aligns with global efforts to diversify battery material sourcing. The US Inflation Reduction Act (IRA) and European battery regulations are pushing manufacturers to secure non-Chinese sources of battery raw materials, creating an opportunity for Australian-based production.

By integrating recycling, lithium processing, and cathode material production, Livium is positioned to become a leading supplier of sustainable battery materials. The company’s success in securing the ARENA grant demonstrates strong confidence in its technology and commercialisation potential.

As the project advances, investors will be watching closely for finalised funding agreements, further offtake commitments, and progress towards full-scale commercial production, all of which could significantly enhance Livium’s long-term growth prospects.