Lithium Australia’s shares increased by 48.5% to A$0.049, preparing for the best performance since January 19, 2021, if gains persist.

The company announced a deal with Mineral Resources (ASX:MIN) to establish a joint venture and construct a pilot plant.

Under the terms of the agreement, Mineral Resources will be the primary financial backer for the development and operation of the pilot plant in Queensland.

The total budgeted cost for this project is estimated at A$4.5 million.

Lithium Australia also plans to contribute its patented LieNA technology, designed to oversee the plant’s production process.

This announcement has elevated the company’s shares to their highest level since February 7.

Despite this progress, the company’s share price has fallen by 27% this year as of the most recent close.

Lithium Australia is a company that taps into lithium exploration and production to proffer environmentally friendly solutions to the energy storage industry.