Lithium Australia and China’s DLG Battery to launch a new range of lithium-ion batteries

Lithium Australia and China’s DLG Battery to launch a new range of lithium-ion batteries

August 1, 2019
Marcia González

Lithium Australia has cemented its partnership with DLG by incorporating a joint marketing division, which will trade as Soluna Australia

Sustainable materials specialist Lithium Australia has announced a deal with Chinese JV partner DLG Battery Co to sell a range of lithium-ion batteries in the domestic market, which has subsequently sent its shares skyward. Under the terms of the agreement, the parties will form a new joint marketing division, Soluna Australia Pty Ltd, to supply and service a range of lithium-iron-phosphate (LFP) and lithium-ion batteries with a focus on industry-scale energy storage systems.

Lithium Australia is the country’s latest lithium miner to form a partnership with a Chinese battery maker and is the first to target the domestic batteries market. Australia reportedly has the highest penetration of rooftop solar panels per person in the world, which has attracted global battery makers into the country as households look to cut down on energy prices. Lithium Australia has stated it plans to supply DLG, with whom it formed a JV in May, with LFP cathode powders manufactured by its unit VSPC Ltd for use in DLG batteries.

Of late, several Chinese firms have signed contracts with Australian companies for lithium supply, although demand for the key battery manufacturing component has come under pressure after China cut subsidies for some electric vehicles.

Earlier in July, Australian lithium miner Pilbara Minerals revealed it had signed an additional deal with Chinese automaker Great Wall Motor Co to supply lithium concentrate.

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