December 17 (Renewables Now) - Lithium Australia NL (ASX:LIT) on Monday said it has secured up to AUD 6.3 million (USD 4.7m/EUR 4.3m) in funding for its energy storage joint venture (JV), Soluna Australia, and other battery-related operations.
The funds come from The Lind Global Macro Fund, LP, managed by US-based alternative asset management firm The Lind Partners.
Lithium Australia said the initial investment, amounting to AUD 3 million, will be in the form of a secured convertible security and a AUD 100,000 share placement. Lind will also subscribe for up to AUD 3.3 million of Lithium Australia shares over 12 months via monthly prepayments in the AUD 100,000 - AUD 300,000 range.
Soluna Australia was launched earlier this month as a 50/50 JV between Lithium Australia and Chinese battery and energy storage company DLG Group. It will sell lithium-ion batteries (LIB) and Soluna energy storage products to the growing renewable energy market in Australia, the company said.
Lithium Australia will also invest part of the proceeds in the commercialisation of its cathode business. Subsidiary VSPC Ltd converts primary battery chemicals into high-spec cathode materials.
A portion of the funds will also go to support the growth of Envirostream Australia Pty Ltd, another subsidiary of Lithium Australia, which operates the company's battery recycling business.
(AUD 1.0 = USD 0.75/EUR 0.68)