Novalith lands $2.5m for lithium shake-up

This climate tech start-up says it can substantially reduce lithium production costs, and has landed federal government funding to build out its tech.

Ian Learmonth, chief executive officer of the Clean Energy Finance Corporation. Picture supplied by CEFC

An Australian climate technology company is targeting the global lithium market with new technology it says will substantially reduce production costs and improve sustainability outcomes, with Novalith raising a $2.5m seed round from US-based venture capital investors and Australia‘s Clean Energy Finance Corporation.

The seed round will allow Novalith to finance the build-out and operation of a pilot plant in Sydney, as it moves toward the development of a commercial demonstration plant, Novalith CEO and founder Steven Vassiloudis said.

According to Mr Vassiloudis, conventional lithium mining and production methods can have a material carbon and cost footprint, and Novalith‘s ’LiCALTM’ technology transforms this production process drawing on intellectual property developed by chemical engineer Professor Brian Haynes, Emeritus Professor at the University of Sydney.

Global battery uptake is expected to grow at least nine-fold over the next decade as the world increases its use of renewable energy.

The Novalith process for extracting lithium consumes carbon dioxide as a reagent, reducing emissions, eliminating the need for conventionally consumed chemicals and minimising waste footprints, Mr Vassiloudis said. Novalith‘s approach also negates the need for extensive offshore processing, enabling Australian-produced lithium ore to be processed closer to mine sites.

“Demand for lithium continues to grow as the world advances its transition to renewable energy to reduce emissions. Novalith can be an important part of sustainable supply solutions, as well as help resource owners process lithium onshore, localising critical battery materials supply chains,” he said.

“The future of lithium mining and refining will require the elimination of carbon-intensive energy sources, and ideally turn carbon waste into carbon value. This is what we are working towards. Novalith’s technology uses significantly less equipment, chemical reagents, water and energy than conventional processing, which reduces capital and production costs. The direct use and sequestration of CO2 in producing lithium chemicals also produces a much smaller emissions footprint.”

The CEFC, through the Clean Energy Innovation Fund, has made a $1.5 million investment in Novalith’s $2.5 million seed round, which also drew support from the US-based venture capital investor, The Jeremy and Hannelore Grantham Environmental Trust’s Neglected Climate Opportunities LLC. The CEFC investment is on behalf of the Australian government.

The company did not disclose its latest valuation.

“The Novalith technology has the potential to change the nature of lithium production by using less energy and creating less emissions than current alternatives. It also offers an exciting opportunity for Australia to become a major processing, manufacturing and trading hub for lithium resources rather than merely exporting raw materials,” CEFC chief executive Ian Learmonth said.

“Large batteries will play a transformative role in our energy future, enabling Australia to maximise the benefits of our abundant renewable resources and accelerate our transition to a low emissions economy.”

Originally published as Novalith lands $2.5m for lithium shake-up