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 March 2024 ('Q3 FY24'). The company reported a significant increase in lithium-ion battery (LIB) collection volumes, a surge in Mixed Metal Dust (MMD) sales, and the signing of exclusive recycling agreements with LG Energy Solution and Hyundai Glovis. The strong cash and listed investments position at 31 March 2024 was A$7.1m, with ~A$1.3m received subsequent to quarter end from MinRes.

Commentary from Lithium Australia CEO and Managing Director, Simon Linge

We are excited by the significant progress made across our recycling operations during the quarter, including strong LIB collection volumes and MMD sales. Notably, the signing of exclusive recycling agreements with leading OEMs, LG Energy Solution and Hyundai Glovis, will help secure a strong future supply of large-format LIBs. Large-format LIBs are core to our strategy, and we aim to secure further recycling agreements with leading battery manufacturers moving forward. The joint development agreement with MinRes is also progressing as planned, with piloting activities and an engineering study underway. We are excited to finalize all piloting activities this calendar year in order to move towards the next phase of the agreement, which involves the formation of a JV with MinRes to commercialize the LieNA® technology.

Summary of Lithium Australia Quarterly Activities Report

Lithium Australia (ASX: $LIT) reported a strong increase in LIB collection volumes, a surge in MMD sales, and the signing of exclusive recycling agreements with LG Energy Solution and Hyundai Glovis. The company's focus on large-format LIB collections has resulted in a significant increase in MMD output and sales. Process improvements and commercial arrangements with customers are expected to drive revenue growth from service fees and MMD sales, increasing confidence for the recycling business reaching cashflow breakeven. The joint development agreement with MinRes is progressing as planned, with piloting activities and an engineering study underway. The company also announced the signing of a non-binding Memorandum of Understanding with SungEel HiTech Co., Ltd. regarding the off-take of MMD and progression of a joint development agreement related to an investment by SungEel into the expansion of the company's recycling capabilities. Lithium Australia remains committed to exploring different pathways forward to unlock value in the company's patented lithium ferro phosphate (LFP) technology. The company has a strong cash and listed investments position of A$7.1m, with ~A$1.3m in cash received subsequent to quarter end from the third drawdown from MinRes. The company is aiming to lead and enable the global transition to sustainable lithium production, and its revenue-generating recycling business and technologies are well-placed to capitalize on growing global lithium-ion battery demand and provide diversification benefits to global supply chains.