VSPC eyes cathode powder global supply chain with $30 million ARENA grant

Queensland manufacturing company VSPC has been granted $30 million non-recourse funding to commercialise a new process for manufacturing cathode powder used in lithium-ion batteries.

February 20, 2025 Ev Foley

Image: Livium Ltd

Queensland critical battery mineral developer VSPC, a wholly owned subsidiary of Melbourne-headquartered advanced materials developer Livium, has been granted $30 million (USD 19 million) to commercialise a new process in cathode power manufacturing.

Received by the Australian Renewable Energy Agency (ARENA), the grant will co-fund the expansion of the patented process, which combines the advantages of solid-state and solution-phase synthesis methods, to produce high-performance lithium ferro phosphate (LFP) and lithium manganese ferro phosphate (LMFP) powders with greater control of product characteristics and quality.

The company says their manufacturing method makes the process flexible for use in different battery cell technologies.

ARENA’S funding covers 50% of the estimated cost to build and complete two years of operation of a proposed Brisbane-based 250-tonne per annum LFP demonstration plant progressing VSPC’s aim to play a key role to build LFP supply chains outside of China.

The annual output from the plant would be enough to supply 12,500 household batteries or 1,600 EV batteries, and is anticipated to generate annual revenues estimated at $503 million.

An isometric view of the Australian LFP demonstration plant.
*Image: Livium Ltd*

Livium Managing Director and Chief Executive Officer Simon Linge said the project seeks to unlock a patented technology and advance diversified LFP supply chains, which will ultimately seek to increase access to high-quality, cathode materials.

“The grant from ARENA represents a significant step forward for our battery materials commercialisation. This grant, which follows an extensive process, is expected to facilitate further strategic private capital to complete funding for the project,” Linge said.

The company says independent assessment of its materials found VSPC LFP retained the highest capacity at fast charging rates and demonstrated superior stability compared to market leading samples, relative to commercially available products.

Its patented manufacturing process produces a range of high-purity LFP and lithium manganese iron phosphate (LMFP) products, from a flexible range of raw material inputs to meet a range of end applications, including both energy storage systems (ESS) and electric vehicles (EVs), the company says.

ARENA Chief Executive Officer Darren Miller described the project as a potential breakthrough in cathode powder technology.

“If the project is successful, it could help catalyse competitive manufacturing of cathode powders and help diversify supply chains,” Miller said.

“As global demand for energy storage rises, domestic advancements in cathode powder positions Australia as a leader in advanced battery manufacturing, giving us opportunities to contribute to global supply chains and create new economic opportunities in renewable energy innovations.”

The grant builds on billions in funding in battery supply chains under the federal government’s Future Made in Australia plan: from legislated production incentives for critical minerals, through to manufacturing new battery products.

Federal Minister for Industry and Science Ed Husic said Australia has world-leading battery know-how and deep reserves of critical minerals needed for battery-making.

“Combining those strengths to create a thriving manufacturing industry is important for our economic future and that is what this investment is about,” Husic said.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.