Lithium Australia finalising VSPC acquisition
Lithium Australia NL (ASX:LIT) informed the market yesterday that it had received acceptances for 99.7% of the Very Small Particle Company’s (VSPC) issued capital.
The announcement came just 48 hours after LIT lodged formal documents for its takeover of the Brisbane based cathode powder producer, which has spent approximately A$30 million developing its production technology.
The technology allows VSPC to dictate the particle size and chemistry of cathode powders, using patented technology to generate initial particles directly from solution. The particle genesis is directly compatible with energy-metal technologies under development by LIT and will improve the production process and cost.
As a result of the takeover, LIT will close the loop of the energy-metal cycle by enabling the production of new cathode powders via used materials.
However, this remains a speculative stock and investors considering this stock for their portfolio, should seek professional financial advice.
LIT managing director Adrian Griffin spoke on the promising development yesterday, “Supply shortages are already a reality in the lithium-ion battery space.
“VSPC provides us with the opportunity to manufacture the most advanced cathode materials in the world, at the high-margin end of the battery metals market.
“Importantly, VSPC will also allow us to capitalise on waste batteries as a resource. The VSPC acquisition elevates Lithium Australia’s role as a processor of primary materials to that of a sustainable producer of lithium-ion battery components.”
LIT will also prioritise the re-commissioning of VSPC’s pilot plant, flagging its intentions to make a wide range of cathode materials available for assessment to leading battery manufacturers in the near future.
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