An Australian lithium producer has reached a milestone agreement with a major Chinese battery manufacturer which will accelerate the commercialisation of lithium ion batteries in both countries.

Lithium Australia has partnered with a major Chinese battery manufacturer which will enhance the supply of batteries into the Australian market and boost manufacturing of battery components in Australia.

Lithium Australia has signed a ‘letter of intent’ with major Chinese manufacturer DLG Battery Co. Ltd., to form a joint venture with the aim of fast-tracking the commercialisation of Australian and Chinese battery technologies.

Under the partnership, a 50:50 joint venture between the two companies will be formed, establishing Lithium Australia DLG which will supply lithium ion battery packs to the Australian market.

DLG Battery Co. Ltd is headquartered in Shanghai, China and is one of the top 10 producers of batteries in China.

As part of the agreement, Lithium Australia and DLG battery will cooperate in the development of their respective technologies, with a focus on technologies suitable for Australian battery storage applications.

Lithium Australia seeks to serve as a “closed-loop” provider of lithium products, covering raw materials production, the processing of advanced components for the battery industry and through the recycling of spent batteries.

Lithium Australia owned subsidiary VSPC Ltd is currently producing cathode powders, a key component of lithium batteries. Under the partnership, VSPC’s powders will be used in the production of DLG batteries in China.

Lithium Australia has a portfolio of lithium projects located in Australia, Europe and North America.

“Lithium Australia’s partnership with DLG will provide us with first-mover advantage in the supply of batteries designed specifically for Australian conditions and create a stable supply chain. That will provide equipment manufacturers with regular and reliable supplies of LIBs held as stock in Australia.” Lithium Australia managing direct Adrian Griffin said.

“We look forward to developing a critical supply-chain solution with our internationally respected partner DLG.”