PERTH (miningweekly.com) – Phosphate developer Avenira has inked a formal agreement with its technology partner Advanced Lithium Electrochemistry Ltd (Aleees) granting Avenira the right to use intellectual property for the manufacture and global distribution of lithium ferro phosphate (LFP) cathode active material.

The formal agreements follow the signing of a non-binding memorandum of understanding with Aleees in September 2022 to work towards the development of an LFP battery cathode manufacturing plant in Darwin using Avenira’s flagship Wonarah phosphate project.

“We are very pleased to have concluded formal agreements with our technology partner Aleees. The agreements build on the strong working relationship we have established with Aleees over the last 12 months, and which will now gather further momentum as we progress feasibility studies for the LFP project,” said Avenira executive chairperson Brett Clark.

“In the meanwhile the LFP market continues to grow strongly, with LFP an emerging favourite in the expanding electric vehicle (EV) market, with factors driving this popularity including superior safety, longevity, cost-effectiveness, and environmental sustainability. LFP batteries have cornered around 30% of the EV market share from just 6% in 2020, demonstrating the growing appeal of this type of lithium-ion battery in the electric vehicle sector.”

The formal agreements consist of a licence and technology transfer agreement and a subscription agreement.

Under the licence and technology transfer agreement, Aleees will be paid $2-million on or before December 24 this year, in either cash or Avenira shares, with a further $2-million payable when the LFP project is fully funded and ready to start construction.

A further A$0.5-million payment is due on completion of the construction and A$0.5-million on first production and sales of LFP cathode active material from the LFP plant.

Under the subscription agreement, and subject to ASX and shareholder approval, Avenira will issue performance rights as part of an incentive programme offered to Aleees team members.

On completion of all funding required for the construction of the first LFP train, 45-million performance rights will be vested and converted into one share each. On the project achieving mechanical completion, a further 45-million performance rights will be vested and converted into shares.

On first production and sales of 1 000 t of LFP cathode active material, a further 60-million performance rights will each vest and convert into a share.

The performance rights will only vest if the milestones are achieved within three years from the issue of the performance rights.