09 May 2019 – miningnews.net | By Michael Quinn
ADRIAN Griffin is set to become a veritable battery salesman after multi-faceted Lithium Australia signed a letter of intent with Chinese battery producer DLG Battery to supply and sell lithium-ion batteries in Australia.
Adrian Griffin and DLG’s Jefferey Wu
Details of the planned 50:50 Lithium Australia DLG business were scant, with the two “intend(ing) to complete the required planning” by June 30.
Meanwhile Lithium Australia will purchase “an initial battery inventory” through the issue to DLG of 12.5 million shares at the prevailing market price of A8c each.
DLG is described as “one of the ten largest battery manufacturers in China … (with) six development and manufacturing facilities there, as well as sales and support offices in the United States and Europe”.
It is said to develop and manufacture cylindrical LIB cells, packs and systems, producing not only lithium-iron-phosphate and lithium-nickelmanganese-cobalt battery cell types but also battery-management-system and pack technology.
“Having developed significant intellectual property (more than 50 issued patents), DLG sells products for use in consumer electronics, electric vehicles, energy storage systems, e-bikes and many other applications,” Lithium Australia said.
The two firms will also form a technology alliance aiming to fast track the commercialisation of cathode powders produced by a subsidiary of the ASX firm in Brisbane, with the aim being for the powders to be used in DLG batteries.
Lithium Australia started the current quarter with $9.3 million cash.
So far as ASX investors were concerned, the overall venture evidently sounds promising.
Shares in Lithium Australia were up 13% to 8.8c in late trade, capitalising the company at $41 million.