Lithium Australia (ASX: $LIT) Quarterly Activities Report

Lithium Australia Ltd (ASX: $LIT) has released its quarterly business update and Appendix 4C for the period ended 31 December 2023 ('Q2 FY24'). The company reported a 179% increase in large-format lithium-ion battery collections, with a total of 338 tonnes of batteries collected for recycling during the quarter, including 89 tonnes of large-format LIBs. The company also completed recycling process optimization work, resulting in up to 25% greater mixed metal dust (MMD) yield per tonne of lithium-ion battery processed. Additionally, the sale of the Company's remaining interest in the Lake Johnston Lithium Project for A$2.0m to Charger Metals NL ('Charger') was announced, with significant progress made in the joint development agreement (JDA) with Mineral Resources ('MinRes').

Executive Commentary

We are excited to see volumes of large-format LIBs grow during the quarter as we continue to execute our strategy to target this battery type via partnerships with EV and ESS manufacturers. Volume growth and process improvements in MMD yield are key to our goal of achieving cashflow breakeven within the recycling business. We continued to make strong progress under the JDA with MinRes, having completed a second drawdown from the convertible note, while also appointing the lead engineer for the demonstration plant engineering study subsequent to the quarter end. The Company is committed to rapidly progressing alongside MinRes, to ultimately achieve full-scale commercialization of the patented LieNA® technology.

Summary

Lithium Australia reported a significant increase in large-format lithium-ion battery collections, with a 179% rise relative to the prior corresponding period. The company also completed recycling process optimization work, resulting in up to 25% greater mixed metal dust (MMD) yield per tonne of lithium-ion battery processed. Additionally, the sale of the Company's remaining interest in the Lake Johnston Lithium Project for A$2.0m to Charger Metals NL ('Charger') was announced, with significant progress made in the joint development agreement (JDA) with Mineral Resources ('MinRes'). The company's strong cash and listed investments position at 31 December 2023 of A$6.6m, with A$2.9m received subsequent to quarter end from Charger and MinRes, positions Lithium Australia well to execute on its key growth objectives. Continued growth of LIB collection volumes and process improvements are expected to increase revenues, driving stronger margins as collection volumes increase.