LieNA® JV Targets 8% Royalty as Lithium Market Delays Demonstration Plant

Joint Venture Formation Marks Commercialisation Milestone

Livium Ltd (ASX – LIT) and Mineral Resources Ltd (ASX – MIN) have taken a significant step forward in bringing Livium’s patented lithium processing technology, LieNA®, to market by establishing a 50 – 50 joint venture entity, LieNA Pty Ltd. This JV follows the successful completion of Stage 1A activities under their earlier Joint Development Agreement, signalling a transition from development to commercialisation.

The newly formed JV is governed by a comprehensive Shareholders Agreement that outlines its structure, governance, and decision-making processes. LieNA Pty Ltd now holds the intellectual property rights to the LieNA® technology, positioning the JV to pursue licensing opportunities that could extend the technology’s reach across the lithium extraction sector.

Licensing Strategy and Market Positioning

The JV aims to monetise LieNA® primarily through licensing agreements with third parties, targeting a headline gross product royalty rate of 8%. This royalty model is designed to capture ongoing fees based on the volume of lithium processed using the technology, potentially unlocking a broad addressable market. Initially, the JV plans to license the technology to a semi-commercial demonstration plant, which Mineral Resources may elect to fund and operate independently. This plant will serve as a proof point for commercial-scale lithium salt extraction.

Mineral Resources’ first-mover position in the demonstration plant will be recognised through a discounted royalty rate, reflecting their early commitment and operational expertise. Both partners express confidence in the technology’s role in the future of lithium processing, despite current cyclical challenges in the lithium market.

Market Conditions and Project Timing

While the lithium market is experiencing a downturn, driven by cyclical factors, the JV acknowledges that fundamental demand drivers such as electrification, decarbonisation, and supply chain localisation remain intact. However, these market conditions have delayed the economic viability and funding of the LieNA® Demonstration Plant. To accommodate this, the JV has agreed to extend deadlines related to the plant’s construction, allowing time to monitor market dynamics and explore alternative monetisation pathways.

Importantly, the JV has sufficient funding and has agreed to waive the remaining A$281,000 drawdown on the original A$4.5 million convertible note, reflecting a pragmatic approach to capital management amid uncertain market conditions.

Strategic Outlook and Shareholder Value

Livium’s CEO Simon Linge emphasised the strategic value of partnering with Mineral Resources, citing their operational expertise and vision as critical to unlocking LieNA®’s commercial potential. The JV’s immediate priority remains scaling Livium’s battery recycling business, while simultaneously exploring ways to realise or preserve value from the LieNA® technology.

Both parties remain committed to advancing the technology’s commercialisation, with a focus on licensing and potential partnerships that could accelerate adoption. The JV structure and royalty model provide a flexible framework to capitalise on future lithium market recovery and evolving industry needs.