Livium has secured a major funding boost with a $30 million grant from the Australian Renewable Energy Agency (ARENA) to support the development of its lithium ferro phosphate (LFP) battery demonstration plant. This funding will cover 50% of the estimated costs for building the facility and operating it for two years.

The demonstration plant will be developed through Livium’s subsidiary, VSPC, which specialises in producing cathode active material—a critical and high-cost component of battery manufacturing. According to Livium’s chief executive officer and managing director, Simon Linge, the grant marks a pivotal moment in the company’s commercialisation journey.

“This grant from ARENA represents a significant step forward for our battery materials commercialisation,” Linge said. “The independent due diligence undertaken as part of the funding validates our technology, and the ARENA grant is expected to facilitate further strategic private capital to complete funding for the LFP demonstration plant.”

A Step Towards Commercial Scale Production

Livium plans to use the two-year operational period of the demonstration plant to validate its technology at scale and secure binding LFP offtake agreements. These agreements will be essential for transitioning from pilot-scale production to full commercial operations.

ARENA chief executive officer Darren Miller highlighted the potential impact of the LFP project on the broader battery manufacturing sector.

“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.”

Strategic Funding and Industry Validation

The ARENA grant follows a rigorous year-long due diligence process that assessed Livium’s technology, market potential, and execution capabilities. With half of the required $60 million now secured, the company is looking to attract private investment to bridge the remaining funding gap.

Linge confirmed that Livium is actively engaging with private capital markets and industry partners to complete the funding requirements without relying on shareholder dilution. Once fully funded, the company will proceed with engineering studies, finalise investment decisions, and move forward with off-take negotiations.

Strengthening Australia’s Battery Manufacturing Industry

The successful execution of the LFP demonstration plant project is expected to bolster Australia’s position in the global battery materials supply chain. Given the increasing demand for energy storage solutions, the ability to domestically produce high-quality cathode powder could reduce reliance on international supply chains, particularly those dominated by China.

As the transition to renewable energy accelerates, Livium’s initiative aligns with Australia’s broader strategy to expand its role in advanced battery technology. With strong governmental support and industry interest, the LFP demonstration plant is poised to become a critical milestone in the country’s push toward sustainable energy storage solutions.

The project is expected to be fully operational within the next two years, with Livium aiming to leverage this milestone to scale up commercial production and contribute to the nation’s growing clean energy economy.