Lithium Universe (ASX: LU7) secures exclusive rights to Edinburgh gold and copper recovery technology

Iggy Tan, Executive Chairman and CEO of Lithium Universe Limited, spoke with MarketOpen to expand on the company’s acquisition of the University of Edinburgh’s Gold Copper Diamide Extraction (GCDE) technology. Tan outlined how the exclusive licence gives LU7 the ability to extract gold and copper from electronic waste under mild, low-energy conditions, producing high-purity metals without conventional smelting.

He explained the staged pilot plant development, milestone-linked capital deployment, and how this initiative complements the company’s core lithium refining operations. Tan emphasised that the structure provides flexibility to operate GCDE either as an integrated division or as a standalone entity, while retaining control of intellectual property and potential revenue streams.

What immediate commercial advantages come from exclusive GCDE rights, and how does this change LU7’s optionality?

We have secured exclusive global rights to the GCDE technology from the University of Edinburgh, allowing us to commercialise a patented process that selectively extracts gold and copper from e-waste. This offers immediate commercial advantages by providing sole access to a low-energy, low-capital method that produces high-purity metals without high-temperature smelting.

With e-waste projected at 93.5 million tonnes by 2030, of which around 80 percent ends up in landfill, the process gives us access to a high-value resource. Exclusive rights also expand our optionality, enabling development either as an integrated division alongside lithium refining or as a standalone business that could be spun out. This ensures flexibility in investment, partnerships, and commercialisation while controlling intellectual property and potential revenue streams from these metals.

How is pilot plant sequencing and capital allocation structured, including milestone timing relative to the lithium strategy?

The pilot plant is being advanced through a staged approach with limited early capital. Initial payments cover the licence, patent registration, and the first annual fee. Milestone payments of £100,000 each are triggered at the final investment decision, commissioning and start-up, and first commercial sale. This sequence allows us to proceed incrementally, validating each stage before committing further capital.

The programme runs in parallel with our lithium refining projects, which remain the primary focus. The precious metals initiative is managed modularly to limit early-stage capital intensity. By linking payments to operational milestones, we maintain financial discipline while retaining flexibility to scale or integrate GCDE commercially once technical validation is achieved.

What risks remain in scaling GCDE to commercial production, and how is LU7 mitigating them?

Scaling GCDE involves validating laboratory performance at pilot and larger volumes, confirming selective gold and copper recovery and consistent reagent reuse. We mitigate these risks by progressing through controlled stages: design, pilot plant commissioning, and gradual commercialisation.

Using off-the-shelf e-waste recycling equipment reduces reliance on bespoke machinery. Exclusive licensing provides operational control, and milestone-linked payments ensure capital is deployed only as each stage is successfully demonstrated. This approach provides a disciplined pathway to scaling while limiting exposure and maintaining operational and financial flexibility.

How do royalties and sublicence terms affect LU7’s ability to capture value and de-risk commercialisation?

The licence structure preserves LU7’s value capture while aligning incentives. We pay Edinburgh University a 3 percent royalty on annual gross revenue from metals produced using GCDE. Approved sublicences return 80 percent of revenue to LU7 and 20 percent to the University, allowing expansion of commercial reach while retaining most upside.

Milestone payments are tied to concrete development steps, ensuring capital is committed only as the technology proves operational. This structure de-risks commercialisation, maintains control over market development, and maximises potential returns from high-value e-waste metals.

Strategic outlook and value optionality

Looking ahead, Lithium Universe is advancing the GCDE pilot plant while maintaining focus on lithium refining operations. The staged, disciplined approach allows validation of commercial performance, efficient capital management, and the capture of value from high-grade e-waste metals.

The technology provides a pathway to grow the precious metals recovery division, with optionality for integration within the company or operation as a standalone business, supporting LU7’s broader strategy of sustainable and scalable contributions to the global energy transition.

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