Lithium Australia NL (ASX: LIT) has formalised joint battery marketing operations with Chinese battery and energy storage specialists DLG Group.
The deal will create a Lithium Australia 50% and DLG 50 JV trading as Soluna Australia Pty Ltd to sell lithium-ion batteries (LIBs) and Soluna energy storage products into the Australian renewables energy market.
Lithium Australia MD Adrian Griffin said formalisation of the joint venture with DLG paves the way for the introduction of superior energy-storage products into the Australian market, reducing the carbon footprint of national energy consumption for both residential and industrial consumers.
We foresee great potential for energy storage in fringe-of-grid and off-grid applications, as well as improvements in the utilisation of power from existing grids,” he said.
Under the JV the two companies have also agreed to form a technology alliance to fast-track commercialisation of VSPC Ltd’s proprietary cathode powders for use in DLG batteries (VSPC Ltd is a 100%-owned subsidiary of Lithium Australia).
Mr Griffin said a detailed investigation of the Australian energy-storage industry identified serious supply-chain constraints in the delivery of LIBs to Australian customers.
“Soluna Australia intends to provide a new and reliable supply source for renewable energy solutions to power users in Australia,” he said.
With the Australian renewable energy sector experiencing strong growth, the Australian Council of Learned Academics estimates that 16 GWh of energy storage will be required by 2030 to ensure security of electricity supply for the medium forecast rate of uptake of renewable energy.
“That will necessitate investment of more than $5 billion in energy- storage solutions in the next 10 years, with LIBs forming a significant proportion of that,” Mr Griffin said.
Soluna Australia has filled two key roles with the appointment of Kieron D’Arcy as General Manager and Raegan Jubb as Sales Manager. Both have 15 years of experience in the renewable energy market.
