What are the details of Lithium Energy’s (ASX:LEL) $20 million graphite project sale?

Lithium Energy (ASX:LEL) has signed a definitive agreement to sell its 100 per cent interest in the Burke, Mt Dromedary, and Corella graphite projects to M Battery Materials.

Why is Lithium Energy (ASX:LEL) selling its Queensland graphite assets?

The divestment allows Lithium Energy to monetise its graphite portfolio ahead of MBM's planned Initial Public Offering (IPO) on the ASX. MBM aims to list as a dedicated battery materials specialist, leveraging the broader M Resources Group ecosystem to develop a consolidated Queensland graphite and vanadium footprint.

What does the in-specie distribution mean for Lithium Energy (ASX:LEL) shareholders?

Lithium Energy intends to distribute the $15 million worth of MBM consideration shares directly to its own shareholders via an in-specie distribution before MBM lists on the ASX. This means existing LEL shareholders will receive direct equity ownership in the new company at no additional cost, subject to regulatory and shareholder approvals.

How much of M Battery Materials will Lithium Energy (ASX:LEL) shareholders own?

Assuming a full 100 per cent in-specie distribution and that MBM raises its minimum IPO target of $15 million, Lithium Energy shareholders will collectively hold a 33.33 per cent aggregate stake in the newly listed vehicle.

Who is leading M Battery Materials, and what is their strategy?

MBM is owned and led by industry veterans Matt Latimore, founder of M Resources, and Gerhard Redelinghuys, former Managing Director of Bowen Coking Coal. Upon listing, Latimore is proposed as Non-Executive Chairman and Redelinghuys as Managing Director.

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Lithium Energy sells graphite projects for $20M

Written by Mahathir BayenaPublished May. 26 2026Last Updated May. 26 2026

Australian critical minerals player Lithium Energy (ASX:LEL) has struck a definitive share sale and purchase agreement to sell its 100% interest in the Burke, Mt Dromedary, and Corella graphite projects to M Battery Materials.

The transaction, valued at $20 million, comprises a $5 million cash payment and $15 million in MBM shares.

The divestment aligns with MBM’s push to list on the ASX as a dedicated battery materials specialist.

MBM plans to launch an initial public offering aiming to raise a minimum of $15 million.

Led by industry veterans Matt Latimore and Gerhard Redelinghuys, MBM will leverage the broader M Resources Group ecosystem to develop its consolidated Queensland graphite and vanadium footprint.

Subject to regulatory and shareholder approvals, Lithium Energy intends to execute an in-specie distribution, passing the consideration shares directly to its own shareholders prior to the ASX debut.

If successful, and assuming a full 100% distribution alongside MBM’s minimum capital raise, Lithium Energy shareholders will collectively hold a commanding 33.33% aggregate stake in the newly listed vehicle.

Lithium Energy also intends to subscribe for further shares under the upcoming IPO.

At the time of reporting, Lithium Energy’s share price was $0.335.