Proposed NT battery cathode manufacturing plant a step closer to construction

A new lithium ferro phosphate (LFP) battery cathode manufacturing facility is a step closer to being built in the Middle Arm Sustainable Development Precinct in the Northern Territory following the signing of a licence and technology transfer agreement between Avenira Limited and Advanced Lithium Electrochemistry Limited (ALEEES). 

This binding agreement will give Avenira the authority and specifications to manufacture LFP battery cathode material at the proposed manufacturing facility in Darwin. 

The proposed manufacturing facility is set to become Australia’s first commercial-scale facility of its kind. It is designed to deliver about 30,000 tonnes annually of LFP powder that will be used in batteries for electric vehicles and energy storage. 

“Securing a technology partner of ALEEES’ calibre gives us great confidence as we continue to develop the LFP project at Middle Arm, Darwin together. 

“Once operational, this will be Australia’s first LFP plant and an important example of value-adding to our upstream Wonarah Phosphate Resource. 

“The production of LFP cathode material is an important pre-cursor to the manufacture of LFP batteries, which are gaining popularity among EV manufacturers globally and are also the preferred type of battery for energy storage systems. 

“The LFP plants will create many opportunities for Australia with increased technology skills, research and development, engineering and integration with global renewable supply chains,” Avenira Limited Chairman Brett Clark said. 

The LFP battery cathode manufacturing plant is estimated to create more than 500 jobs during its construction and a further 100 operational jobs – which will be scaled up to 300 positions. The facility is also expected to generate up to $1.5 billion annually to the Northern Territory economy. 

Avenira and ALEEES signed a Memorandum of Understanding (MoU) in September 2022, allowing the two companies to work together with the Northern Territory Government in progressing the development of the manufacturing plant. 

“Avenira and ALEEES combined experience and expertise will put more “Made in Australia” components into electric vehicle and energy storage batteries. 

“The Australian battery supply chain is a key attractor to clients’ being able to implement their ESG priorities as part of an active contribution to addressing climate change. 

“By assisting Avenira in manufacturing LFP cathode materials, we enable Avenira’s products to become globally competitive, reduce reliance on foreign sources, and create more green technology job opportunities in manufacturing, engineering, research, and other fields,” ALEEES Board Member Jamie Lee said. 

Avenira is one of five companies with a ‘not to deal’ commitment for land at the Middle Arm Sustainable Development Precinct. 

The Territory Government continued to facilitate the project over the last 12 months, supporting regulatory approvals, connection to offtake markets as well as maximising benefits for local businesses. 

“This is what the Territory Labor Government is about – finding quality, innovative projects that will create jobs now and into the future. 

“For the past 12 months, my government has been working with Avenira and now we are seeing the signing with ALEEES of a licence and technology transfer agreement, which will provide Avenira with the authority and specifications to manufacture lithium ferro phosphate battery cathode material at the Middle Arm Sustainable Development Precinct. 

“This supports the entire Territory, from the Barkly to the Top End. Creating 500 construction jobs, followed by 300 jobs during operations and injecting the economy with $1.5 billion annually,” Chief Minister Natasha Fyles said. 

The LFP battery cathode manufacturing facility will eventually be supplied phosphate from Avenira’s Wonarah Phosphate Project in the Barkly region. The company has recently signed a Mining Agreement with the Arruwurra Aboriginal Corporation that will enable the project to continue its development. 

The demand for phosphate as a critical mineral in electric vehicle and energy storage batteries is increasing which, in turn, supports the increased use of green energy and transition to net-zero emissions. 

Source: Northern Territory Government Newsroom; Avenira Limited (1, 2); The National Tribune