SYDNEY, May 10 (Xinhua) -- Lithium Australia has signed a letter of intent with major Chinese battery manufacturer, DLG, in a deal to supply the Australian market with lithium batteries and work together to develop and enhance the technology.

Lithium batteries are expected to play an integral part in the sustainable economy of the future for their use in electric vehicles and are already indispensable in today's technologies such as smartphones, laptops and tablets.

The partnership was officially revealed on Thursday and will see the formation of an equal venture, Lithium Australia DLG, supplying lithium battery packs and modules in Australia.

A subsidiary of Lithium Australia, VSPC, produces cathode powder, a key component in lithium batteries which will be used to manufacture DLG batteries in China and develop products specifically engineered to meet Australia's needs.

"Lithium Australia's partnership with DLG will provide us with first-mover advantage in the supply of batteries designed specifically for Australian conditions and create a stable supply chain," Lithium Australia's managing director Adrian Griffin said.

"Lithium Australia, through its subsidiary VSPC, has developed superior cathode materials that provide the performance required for this application."

"Our partnership with DLG, a leading Chinese battery producer, vindicates the development efforts undertaken by the company to commercialize this opportunity."

Lithium Australia aims eventually to encompass all stages of the battery lifecycle from manufacturing to recycling spent batteries.

"We look forward to developing a critical supply-chain solution with our internationally respected partner DLG."