A $105 million plan to refine Australian lithium into a new type of battery mineral has been revived after the proponents, PLS and Calix, secured funding from state and federal governments.

Calix and the old Pilbara Minerals announced on Thursday they would resume work on their first-of-a-kind lithium phosphate processing plant in Western Australia, reversing an October decision to halt the project amid a collapse in lithium prices.