Lithium Australia (ASX:LIT) and Mineral Resources (ASX: MIN) agreed to assess alternate commercialization strategies for the LieNA technology, as well as to select a preferred lithium product for the development of the technology, according to a Monday Australian bourse filing.

The selection of a preferred lithium product includes the potential to produce a battery-grade lithium carbonate.

These activities will be funded via the remaining balance of Mineral Resources' convertible note and LieNA research and development tax incentive rebates, received on Jan. 8.

Mineral Resources and Livium extended the maturity date of the convertible note deed to Sept. 30, from its original date of Jan. 31.

The LieNa processing technology is designed to extract lithium from spodumene mineral concentrate.

On the completion of these activities, Mineral Resources' convertible note will convert into equity in a new joint venture, LieNA, between the two firms, with both holding a 50% interest each. LieNA wholly owns the LieNA technology and is currently a wholly-owned unit of Livium.

If the activities are not successfully completed and Mineral Resources decides to not convert to equity, then LieNA will pay it 50% of the value of the technology as repayment of the purchase price under the convertible note.

LieNA plans to license the technology at a target headline gross product royalty rate of 8%.