The Northern Territory (NT) Government has announced a Memorandum of Understanding (MoU) with Aleees and Avenira Ltd.
In a statement, the State Government said its partnership with the two companies would see its first battery cathode production facility developed and operated in Darwin.
Chief Minister Natasha Fyles said increasing demand and the move to renewable energy, battery storage, and the use of high-tech products had led multinational organisations to seek out diverse, dependable, and stable supply chains.
“The project will position the Territory as the next Australian home of advanced manufacturing, develop new skills and jobs, as well as support our objective to achieve a $40 billion economy by 2030,” Fyles stated.
The facility will produce lithium iron phosphate (LFP) battery cathode material, providing a substantial economic and strategic opportunity for NT.
Once the project is fully operational, it is expected to produce 1000 jobs and generate over US$4 billion in annual revenue.
According to the State Government, the capacity, safety, and durability of an energy storage battery or an electric car battery are all influenced by the active component known as the lithium cathode.
Minister for Renewables and Energy Selena Uibo said the future is renewables, hence the continuous support and investment in projects such as lithium battery material manufacturing plant.
“We are making sure the Territory will have clean and efficient energy to help reach our renewables and net zero emissions targets. This project will create local job opportunities, and strengthen the Territory’s reputation as a renewable energy destination,” Minister Uibo stated.
Under the terms of the MoU, the Territory Government, Aleees, and Avenira will collaborate to reach a Final Investment Decision (FID) on a pilot facility, with the FID being targeted for early 2023.
To find a suitable location for the facility in Darwin, the Government will also collaborate with Aleees Group, Avenira, and its supply chain partners.
The pilot factory, once operational, will produce up to 10,000 tonnes of lithium iron phosphate battery cathode material each year.
The MoU also supports the construction of a 200,000-tonne-per-year manufacturing facility in Darwin over the following ten years. The facility will only use phosphoric acid from Barkly’s Wonarah Phosphate Project.
Avenira Limited Executive Chairman Brett Clark said the MoU allows Avenira to learn from Aleees about the technology used to make LFP battery cathodes and use this knowledge to maximise the production of phosphoric acid from the Wonarah Project.
“The engagement of the Northern Territory Government in the MoU is appreciated, and we look forward to their assistance and guidance,” Brett stated.
According to Aleees AU Pty Ltd President Brandon Chang, the move has a vital impact on strengthening the lithium battery supply chain in the world.
“This cooperation enhance the development of the lithium battery industry in Australia, promoting green energy high-tech development. One of the most exciting opportunities created by renewable energy technologies like cathode materials is the ability to change the world’s sustainability,” Chang said.
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