Lithium Australia reduces exposure to European exploration expenditure

Lithium Australia NL (ASX:LIT) (FRA:3MW) has reduced its exploration tenure in Germany after COVID-19 restrictions rendered work in the historic mining areas in the Erzgebirge (Ore Mountains) in Saxony almost impossible. The company has held tenure in Hegelshöhe, Eichight and Sadisdorf since 2017, but restricted activities along with the financial commitments required to maintain projects in the area have led to a reduction in activities. The Sadisdorf licence has now run full term and has not been renewed, Eichight has been relinquished and the company is yet to make a decision on the future of Hegelshöhe. “Leveraging battery materials in Europe” Lithium Australia managing director Adrian Griffin said: “Rationalising the company’s exposure to direct exploration expenditure in Europe is in line with our corporate policy, which has seen a marked reduction in our global exploration footprint and the farm-out of many assets. “Our preference is to maintain leverage to battery materials in Europe by applying our proprietary technologies, including lithium extraction, cathode powder production and battery recycling, to emerging opportunities. “We see the application of LieNA® (recovery of lithium from low-grade spodumene without roasting) as having great potential, since LieNA® can produce the ideal feed for the production of lithium ferro phosphate (LFP) batteries. “Europe is just awakening to the benefits of LFP and, through company subsidiary VSPC Ltd, we have the technology to revolutionise its production.”