Livium advances funding and commercial engagement for LFP Battery Demonstration Plant
In the wake of Livium Ltd’s binding agreement with the Australian Renewable Energy Agency (ARENA) for a grant of up to A$30 million, wholly owned subsidiary VSPC Pty Ltd has intensified its efforts to close the remaining A$30 million funding gap for its lithium ferro phosphate (LFP) Demonstration Plant, engaging with a broad range of investors.
Over recent weeks, the company has also expanded its potential customer base, including several large electric vehicle original equipment manufacturers (EV OEMs). The cumulative indicative demand from these prospective customers exceeds 300,000 tonnes per annum—more than 12 times the capacity of a 25,000 tonnes per annum LFP manufacturing facility.
To support expansion into the United States, global chemical distribution leader UMC has been appointed as VSPC’s sales agent for the market. VSPC has also started early-stage discussions with parties interested in licensing its proprietary process in non-core jurisdictions, aiming to enhance financial returns while limiting capital expenditure.
The company plans to develop a 25,000 tonnes per annum commercial-scale facility, targeting annual revenues of approximately US$319 million.
To cap things off, VSPC has finalised plans for the LFP Demonstration Plant and is ready to start the front-end engineering and design (FEED) study upon securing full project funding.
Livium CEO and managing director, Simon Linge said,
This is a key period for our VSPC LFP technology as we push towards financial close for the LFP Demonstration Plant.
“We have seen increased interest in our product offering since the announcement of the A$30m ARENA Grant and are looking to use this momentum to move this business forward.VSPC has the potential to be developed globally. To manage the risk of developing in multiple locations, we are pursuing licencing arrangements to penetrate some markets.We are ready to move this project forward and look forward to keeping the market informed of developments over the coming months.”
Funding and customer development initiatives
Livium is actively pursuing multiple funding avenues to close the A$30 million shortfall required to deliver the Lithium Iron Phosphate (LFP) Demonstration Plant, with investment targeted at the VSPC project level. This funding is expected to involve equity investment, potentially diluting Livium’s ownership in VSPC.
Following the award of the ARENA grant, Livium has engaged with a range of potential financiers including institutional investors, strategic partners across the battery value chain, structured debt providers, and state government investment bodies. The company’s advisors are coordinating these discussions, with a focus on securing strategic and growth capital. While full funding is not yet secured, the company considers the ARENA grant a critical foundation for progressing the project.
Customer development strengthens post-ARENA grant
The ARENA grant has also enabled Livium to access and engage four new potential customers, including major electric vehicle (EV) original equipment manufacturers (OEMs). VSPC’s prospective customer portfolio now exceeds 20 companies, with an aggregate potential demand surpassing 300,000 tonnes per annum — more than 12 times the capacity of its first planned manufacturing facility (25,000 tonnes per annum).
North America remains a key market for VSPC. To support penetration into this region, the company has appointed United Mineral & Chemical Corporation (UMC), a member of the ICD Group, as its sales agent in the United States. UMC will lead promotional efforts and coordinate product testing through trade shows, scientific conferences, and direct customer engagement.
Commercial strategy targets licensing and operation
VSPC is pursuing a dual commercial strategy that includes owning and operating manufacturing facilities as well as licensing its proprietary technology in non-core markets. Licensing enables broader market entry without significant capital expenditure, and discussions are underway with potential partners following the ARENA grant announcement.
Demonstration Plant planning advances
The LFP Demonstration Plant will be developed over approximately 46 months and comprise detailed design, construction, commissioning, and a two-year operational phase focused on customer qualification and product validation. The plant is designed to produce 250 tonnes per annum and will remain operational to support product scale-up and new customer samples beyond the initial period.
Initial development will commence with a front-end engineering and design (FEED) study to refine cost estimates and identify long lead-time procurement items. Total project costs are estimated at A$60 million, with approximately 63% allocated to plant and equipment and the remainder to working capital.
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Livium advances funding and commercial engagement for LFP Battery Demonstration Plant, source
