Lithium Australia becomes substantial holder of newly listed Charger Metals with 19.05% stake

Lithium Australia NL (ASX:LIT) (OTCMKTS:LMMFF) (FRA:3MW) has become a substantial holder of newly listed Charger Metals NL (ASX:CHR) after securing 9.6 million shares. LIT now holds a 19.05% stake in Charger, after reaching substantial shareholder status on July 5.  Charger holds 70% of assets  Upon listing Charger has exercised its option to acquire a 70% stake in three of LIT's battery metals assets - the Coates, Bynoe and Lake Johnston projects.    Lithium Australia retains exposure to these battery materials projects by retaining a 30% free carried interest. The Coates project is a WA-based nickel-copper-cobalt-platinum group elements (PGE) play, situated about 20 kilometres from Chalice Mining Ltd’s (ASX:CHN) (OTCMKTS:CGMLF) Julimar discovery. The project comprises one granted exploration licence, one application and one retention licence, covering a combined 48 square kilometres. Further east in Western Australia lies the Lake Johnston lithium, nickel and gold asset — Charger’s most advanced project, with tenements covering around 25 square kilometres. The most promising Lake Johnston target uncovered to date is the Lake Medcalf prospect, where LIT geologists identified a large zone of very strongly mineralised spodumene pegmatite at Bontempelli Hill. In the Northern Territory, Charger holds a managing stake in the Bynoe lithium and gold asset —  just 38 kilometres from Darwin. The Bynoe Pegmatite field is one of the most prospective areas for lithium in the NT and has many similarities to Greenbushes in WA, one of the world’s largest spodumene deposits. Retains exposure Lithium Australia managing director Adrian Griffin said: "Lithium Australia retains significant exposure to raw materials through its equity in Charger, as well as its free-carried project interests. “The latter potentially provide access to raw materials that the Lithium Australia group of companies can further process. “Charger Metals’ specialised expertise will expedite a focused exploration effort, leaving Lithium Australia to concentrate on its core business: the ethical and sustainable supply of energy metals to the battery industry and the development of a circular battery economy. “We eagerly await exploration outcomes at the Coates, Bynoe and Lake Johnston projects.” Cathode material dispatched On July 8 LIT’s subsidiary VSPC Ltd dispatched its second-generation lithium manganese ferro phosphate (LMFP) cathode power to potential customers after meeting industry performance and physical property specifications.  This comes at a time when battery and electric vehicle producers worldwide, among them BYD, VW and Tesla are transitioning to the use of lithium ferro phosphate (LFP) cathode material in lithium-ion batteries. LIT says that lithium-ion batteries of both the LFP and LMFP type are cheaper and safer than those containing nickel and cobalt, and LMFP has up to 25% improvement in energy density over LFP. VSPC’s LMFP cathode material is available to established battery  manufacturers and other potential customers for testing, on schedule with previously released plans.