Livium Ltd (ASX: LIT) has formally established a 50:50 joint venture (JV) with Mineral Resources Ltd (ASX: MIN) to advance the commercialisation of the patented LieNA lithium extraction process, marking a pivotal milestone in the technology’s development pathway. The creation of the joint venture entity, LieNA Pty Ltd, follows the successful completion of Stage 1A activities under the joint development agreement signed in 2023. The agreement sets out governance, decision-making frameworks, and a defined licensing model aimed at positioning LieNA as a commercially viable, high-recovery processing method for spodumene concentrates.
The joint venture will hold full ownership of the LieNA intellectual property and initially target licensing the technology to third parties, with a headline gross product royalty rate of 8 per cent. Mineral Resources will benefit from a discounted rate as a first-mover partner. The first planned licence is expected to be issued to a semi-commercial demonstration plant, which Mineral Resources can choose to fund, develop, and operate independently. This facility would extract lithium salts at commercial scale and serve as a proving ground for broader deployment.
How does the joint venture position LieNA technology for market entry in a subdued lithium environment?
While global lithium markets are navigating a cyclical downturn in pricing and demand, Livium’s leadership emphasises that the underlying structural drivers — electrification, decarbonisation, and supply chain localisation — remain intact. The extended timeline for the demonstration plant reflects current market conditions but also provides flexibility to explore alternative partnership models and monetisation opportunities without compromising the long-term potential of the technology.
Livium’s CEO and Managing Director, Simon Linge, described the venture as the culmination of two years of collaborative technical work with Mineral Resources. He highlighted the partner’s operational expertise and strategic vision as key to unlocking LieNA’s commercial potential. Mineral Resources expressed confidence in the technology’s role in future lithium processing, citing the strong technical results already achieved and a shared commitment to converting these into tangible commercial outcomes.
By licensing the technology rather than solely pursuing vertical integration, the joint venture aims to expand its addressable market and create diversified revenue streams. The royalty model also means LieNA could capture value from multiple mining operations without the capital intensity of direct ownership.
What is the institutional and sector view on Livium’s latest strategic move?
Analysts note that the creation of a dedicated joint venture with a major industry player such as Mineral Resources enhances both the credibility and funding optionality for the LieNA technology. The royalty-based commercialisation pathway, if successful, could provide recurring, high-margin revenues less exposed to commodity price volatility. However, execution risks remain, particularly in securing early licensees and demonstrating the economic viability of the technology at scale.
Institutional sentiment is broadly constructive, especially given Livium’s diversified positioning across recycling, processing, and battery materials production. The ability to generate cash flow from existing operations while advancing next-generation processing technologies is viewed as a strategic hedge in a volatile commodity cycle.
How did Livium’s June quarter performance underpin its technology and expansion ambitions?
The joint venture announcement comes on the back of Livium’s June 2025 quarterly activities report, which showed steady growth in its battery recycling business, Envirostream. The division generated sales of A$1.8 million and a net profit of A$0.2 million, achieving a gross margin of 70 per cent. Approximately 226 tonnes of batteries were collected during the quarter, with large-format lithium-ion batteries making up 61 per cent of the total — a category the company targets for its higher margins and strategic relevance.
New contracts included a three-year agreement with BYD Australia, expanding existing recycling services to include commercial vehicle batteries and battery energy storage systems, and a subcontract with Sell & Parker valued at over A$5 million. Envirostream also secured work with waste management group Bingo Industries and entered an exclusive processing arrangement with logistics major DB Schenker, covering both new and end-of-life lithium-ion batteries.
In line with its sustainability agenda, Livium partnered with NoviqTech to tokenise the environmental benefits of its recycling activities via the Carbon Central platform. This initiative aims to create a transparent, verifiable digital record of carbon reductions and mineral recovery, with potential for future monetisation through carbon credits.
What are Livium’s plans for national infrastructure growth and market diversification?
To meet rising demand for safe, efficient battery processing, Livium is implementing a “Hub and Spoke” model for its recycling operations. The “Spokes” — regional battery sorting, discharging, and storage facilities — will supply processed materials to a central “Hub” for black mass production. The first Spoke facility, planned for Western Australia, is supported by an A$850,000 state government grant and is designed to target industries such as mining that require localised recycling capacity.
The company is also evaluating partnerships for rare-earth element (REE) recovery technologies, aiming to leverage its processing expertise in a market projected to exceed A$9.6 billion within the next year. Management believes recycling will play a significant role in meeting REE supply needs, aligning with global trends toward diversified and secure critical mineral supply chains.
What progress has been made on the LFP demonstration plant and cathode material development?
In its VSPC subsidiary, Livium achieved a key technical milestone during the quarter, reporting pressed density results of up to 2.6 g/cm³ for LFP cathode materials produced using its proprietary RC Process. These results confirm the scalability and competitiveness of its high-energy-density products in the global LFP market.
The Australian Renewable Energy Agency has committed A$30 million in grant funding toward the design, construction, and initial two years of operation of an LFP demonstration plant, contingent on Livium securing matching finance. The company is actively pursuing the additional A$30 million required, with a target to close funding in Q1 FY26. Should this not be achieved, Livium has indicated it will explore alternative strategies to preserve or realise value while limiting working capital exposure.
How is Livium prioritising its next phase of growth?
Livium’s near-term priorities are centred on executing a multi-pronged growth strategy that balances technology commercialisation with operational expansion. A key focus is on securing the additional A$30 million in matched funding required for its Australian LFP demonstration plant, a project backed by a grant from the Australian Renewable Energy Agency. Management views this funding as critical to advancing the plant from design to production, enabling the company to prove the scalability and quality of its proprietary LFP cathode materials in a market increasingly driven by electric vehicle and stationary storage demand.
Alongside this, the company is pressing ahead with the national rollout of Envirostream’s “Spoke” facilities, which are designed to handle battery sorting, discharging, and storage at regional hubs before materials are transported to centralised “Hub” processing sites. These facilities, starting with the Western Australian site supported by a state government grant, are intended to expand capacity, improve logistics efficiency, and position Envirostream as a preferred partner for sectors such as mining that require localised recycling solutions.
Livium is also accelerating its evaluation of rare-earth element recovery opportunities, engaging with technology partners to capture a share of the forecast multi-billion-dollar REE market through sustainable recycling. This initiative builds on the company’s core competencies in critical material recovery and aligns with global supply chain diversification trends. Finally, the company is working to progress commercial licensing agreements for the LieNA lithium extraction technology through its newly formed joint venture with Mineral Resources. By securing early licensing deals, Livium aims to establish LieNA as a recognised processing option in the lithium sector, generating royalty-based revenue streams that could support both short-term cash flow and long-term shareholder value.
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