Lithium Power International is thinking about selling off its lithium exploration assets in Western Australia.

The confirmation follows a media report that flagged the potential divestment.

Lithium Power (ASX:LPI) says it is considering a range of options including an outright sale, joint venture, or spinning out the assets into a newly listed vehicle.

The company is primarily focused on bringing its 50 per cent owned Maricunga lithium project in Chile into production.

In WA, Lithium Power has tenements covering 400 sq km next to the world’s largest and highest grade hard rock lithium mine, Greenbushes, which is owned by Chinese-backed Tianqi Lithium Australia and Talison Lithium.

It also has 203 sq km of exploration ground 3km west of Pilbara Minerals’ (ASX:PLS) Pilgangoora lithium and tantalum project in the Pilbara, which hosts one of the world’s largest spodumene resources.

Spodumene is the main lithium-bearing mineral mined from most hard rock lithium mines around the world.

LPI shares over the past year.
LPI shares over the past year.

Although there is currently no deal on the table, Lithium Power says it has received two approaches.

“The company is considering various options for the development or monetisation of those assets as part of its regular business activities,” Lithium Power said.

In February, Lithium Power revealed it could produce battery-grade lithium carbonate from its Maricunga project that is similar to what is produced in Chile by heavyweights Albemarle and SQM.

Maricunga, which is a brine deposit, is expected to produce 20,000 tonnes of lithium carbonate each year, along with 74,000 tonnes per annum of potassium chloride from the third year.

Lithium Power is aiming to reach full commercial production by 2021.

Lithium brine deposits are found in salt lakes and play an important role in the world’s supply of lithium. In 2015, subsurface brines yielded about half of the world’s lithium production.

The biggest producers of lithium brines are in South America and include Chile and Argentina.

Lithium Power is aiming to have a definitive feasibility study completed in the second half of this year.

The company has been contacted for comment.