Livium has established a 50:50 joint venture (JV) with Mineral Resources (MinRes), focusing on the commercialisation of LieNA lithium processing technology.

This move follows the successful completion of Stage 1A activities under the companies' joint development agreement.

The newly formed JV, named LieNA, was previously a wholly owned subsidiary of Livium, which holds the intellectual property for the technology. The parties have finalised key documents, setting the JV's structure and governance.

Mineral Resources will soon issue a conversion notice and LieNA will issue shares to match Livium's holdings.

The JV has opted to waive the remaining drawdown of A$281,000 ($183,141) from the original A$4.5m convertible note, as it has adequate funds.

Livium CEO and managing director Simon Linge said: “We are incredibly pleased to formalise our joint venture position with MinRes following successful completion of targets we set together two years ago.

“Early in our engagement, we identified MinRes’ deep operational expertise and strategic vision as key attributes to assist in the commercialisation of LieNA. These attributes remain today and we are fully committed to working with MinRes to unlock the commercial potential of this technology and deliver value to our shareholders.”

Despite acknowledging that current market conditions do not favour the economic construction and funding of the LieNA demonstration plant, the parties have extended the deadlines for its development.

This allows time to assess market dynamics and consider alternative partnerships or monetisation strategies for the technology.

The JV's strategy includes licensing the LieNA technology to third parties, aiming for an 8% gross product royalty rate.

This model could significantly broaden the technology's market reach by potentially earning fees on all processed tonnage at mines using LieNA.

Initially, the JV plans to license the technology to a semi-commercial facility, which MinRes may choose to independently fund and operate.

This plant's goal is to produce lithium salt at a commercial scale under the licence, with Mineral Resources receiving a discounted royalty rate due to its early adoption.

“MinRes is pleased with the successful progress made in the development of LieNA and our collaboration with Livium. We firmly believe the technology has a role to play in the future of lithium processing and are focused on working together to convert the strong technical delivery achieved to date into commercial outcomes,” Mineral Resources said.

In January, Livium and MinRes outlined the next steps for LieNA's commercialisation after completing stage one activities, which involved running a pilot plant and conducting an engineering study for a demonstration plant.