West Australian lithium miner Alliance Mineral Assets signed a memorandum of understanding with Jiangxi Special Electric Motor Co. Ltd (Jiangte) to form a joint venture which would produce and sell the battery grade lithium hydroxide.
Under the MoU, the parties have agreed to move into the downstream lithium products market within the next six to 12 months.
Alliance will export spodumene from its WA-based Bald Hill operation to Jiangte, which will then process the material into lithium hydroxide at its plant in China’s Jiangxi Province.
The joint venture will then sell the lithium hydroxide to third parties, with Alliance and Jiangte to equally share in the sales after recovering each party’s respective mining and conversion costs.
“The hydroxide joint venture provides for a rapid, low risk entry into downstream production and sales of battery-grade lithium products,” Alliance managing director Mark Calderwood said.
“Aside from traditional industrial uses a number of rechargeable battery manufacturers are now using lithium hydroxide in their products and this joint venture will enable Alliance to participate in this market,” he explained.
“We are proud of the relationship we have developed with Jiangte and the joint venture is a significant step forward in what is anticipated to be a long-term integrated relationship in the supply of battery cathode materials.”
