Lithium Australia NL (ASX:LIT) has formed a business partnership with leading Chinese battery producer DLG Battery Co Ltd to launch a new range of lithium-ion batteries (LIBs) in the Australian market, with a focus on industry-scale energy storage systems (ESS).
Lithium Australia/DLG Alliance
The companies have cemented their partnership by incorporating a joint marketing division, which will trade as Soluna Australia.
Soluna will provide technical support, customer service and, importantly, a range of lithium-iron-phosphate (often referred to as lithium-ferro-phosphate or 'LFP') battery options for greater safety and superior performance in ESS applications.
Extensive market enquiries have identified strong demand for flexible and tailored LIB and LFP solutions in the ESS sector, which will be the prime focus of Soluna, a company in which Lithium Australia holds 50% equity.
New Australian facility
The product range from a new Australian-based facility will supply and service a range of energy-storage products – from residential energy-storage through to industrial energy storage units.
Custom products, in particular for applications such as large-scale storage (including microgrids), will be provided to bespoke specifications.
Establishing an Australian warehousing and technical facility will provide greater certainty for ESS users currently relying on offshore suppliers.
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Most of the product range will be available with nickel-cobalt-manganese (NCM) and LFP options.
Lithium Australia, which is a great advocate of LFP for reasons of safety and performance, plans to supply DLG with LFP cathode powders manufactured using Lithium Australia’s the cathode powder production technology of its wholly-owned subsidiary VSPC Ltd.
Market potential
Australia leads the world in the installation of rooftop solar and domestic energy storage units.
It has also led the world in the installation of utility-scale ESS and the development of microgrids relying on battery storage for load levelling.
Further, remote hybrid-power applications can allow consumers the advantage of substituting much of their diesel generating capacity with renewables, provided an efficient battery pack forms part of the installation.
Soluna Australia is assessing the potential for installing a number of hybrid power management systems for evaluation in the local energy market.
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Lithium Australia managing director Adrian Griffin said: “Our partnership with DLG, a leading Chinese battery producer, provides an opportunity to establish our new division, Soluna Australia, as a leading Australian-based provider of LIBs and technical solutions to the fast-growing ESS market that sits in our own backyard.
“In addition, Lithium Australia is well on the way to meeting the requirements that will enable VSPC to commercialise its cathode materials and provide Australia with access to purpose-built LFP battery storage, the safest and most effective option for energy storage systems.”