Queensland manufacturer VSPC will build a demonstration plant to produce cathode powder for lithium-ion batteries after the federal government committed $30 million to the venture on Thursday.
The funding from the Australian Renewable Energy Agency (ARENA) for the plant is a key step in VSPC’s attempt to commercialise its breakthrough process for manufacturing powders. It is one of the few producers outside China and wants to feed the powders into growing and shifting global battery supply chains.
The demonstration facility is slated to be built in Brisbane and produce 250 tonnes of Cathode powder a year — enough to supply 12,500 household batteries or 1,600 EV batteries — in what the local company hopes will convince offtake partners and investors in a commercial plant.
The company, which is a subsidiary of ASX listed Livium Australia, produces high performance lithium ferro phosphate (LFP) and lithium manganese ferro phosphate (LMFP) powders with more control and quality than traditional methods.
VSPC says the process is flexible enough to use in different battery cell technologies, opening up potential for supplying a range of domestic or international battery manufacturing.
ARENA chief executive Darren Miller said the demonstration facility to prove it represents a potential “breakthrough” in cathode powder technology and could drive down manufacturing costs for batteries.
“As global demand for energy storage rises, domestic advancements in cathode powder could position Australia as a leader in advanced battery manufacturing, giving us opportunities to contribute to global supply chains and create new economic opportunities in renewable energy innovations”, Mr Miller said.
Livium Managing director and CEO Simon Linge said the ARENA grant “is expected to facilitate further strategic private capital” that will get the project off the ground.
“VSPC’s new process has the potential to generate billions in revenue as we scale up the technology and advance LFP supply chains,” Mr Linge said.
“VSPC is now poised to play a key role in building LFP supply chains within Australia and globally, reducing reliance on China.”
The ARENA funding was announced on Thursday by the Albanese government, which expanded the agency’s remit and dramatically boosted its funds as part of the Future Made in Australia push last year.
The government set aside half-a-billion dollars of battery production incentives in last year’s Budget and followed up with a national strategy. It highlights active material production as an export opportunity, but is technology agnostic.
“Batteries are a cornerstone of the reliable renewable energy transformation, and this new investment is helping secure a future made in Australia too,” Energy minister Chris Bowen said Thursday.
Industry minister Ed Husic added it is another sign of Australia’s “world-leading battery know-how and deep reserves of critical minerals needed for battery-making”.
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