PLS Group (ASX:PLS) entered a binding term sheet with Calix (ASX:CXL) to acquire Calix's ownership interest in an existing demonstration plant joint venture (JV), according to a Thursday filing with the Australian bourse.

The company will pay Calix AU$11.4 million in cash and assume full ownership, funding, and operational responsibility for the plant, the filing said.

It will also receive perpetual royalty-free license for the use of Calix's industrial furnace technology and associated intellectual property (IP), the filing added.

The companies can license Calix's IP to third parties for primary lithium processing applications.

Calix will continue to provide and be paid for technical support at the plant.

Share of Calix tumbled 17% in recent Thursday trade.