• PLS to acquire Calix's ownership interest in the existing Demonstration Plant joint venture
• PLS to assume full ownership, funding and operational responsibility for the Demonstration Plant
• Calix to grant PLS a perpetual royalty-free licence for the use of Calix calciner technology and IP in primary lithium processing

PLS Group Limited (ASX: PLS) and Calix Limited (ASX: CXL) have announced a revised structure for the Mid-Stream Demonstration Plant Project. Under the new agreement, PLS will acquire Calix's ownership interest in the existing joint venture and assume full ownership, funding, and operational responsibility for the Demonstration Plant. PLS will pay Calix A$11.4M to repay Calix's net capital contribution to the project to date. Calix will grant PLS a perpetual royalty-free licence for the use of the Calix calciner technology and associated intellectual property (IP) in all primary lithium processing applications at plants PLS owns or has a joint venture interest in. Both Calix and PLS can jointly or independently licence the Calix IP to third parties for primary lithium processing, with a revised royalty split of 80% to PLS and 20% to Calix. Calix will continue to provide technical support to the Demonstration Plant under a services agreement. The restructure is intended to simplify governance, align capital and risk, improve execution certainty, and support the continued advancement and commercialisation of the technology.

The strategic objective to commercialise the technology for broad application in primary lithium processing remains unchanged. The revised commercialisation framework provides a clear and aligned basis for the pursuit of commercialisation opportunities. PLS intends to provide an update regarding commissioning of the Demonstration Plant in the coming months.