Lithium Australia (ASX:LIT) share price lower despite LieNA update

The Lithium Australia NL (ASX: LIT) share price is sinking on Friday despite the release of a positive announcement.

In morning trade, the lithium company’s shares are down a disappointing 4% to 12.5 cents.

What did Lithium Australia announce?

This morning Lithium Australian announced that its LieNA pilot plant has been given the green light.

According to the release, LieNA is a caustic conversion technology with strong parallels to the production of alumina from bauxite. The process can produce a range of lithium chemicals, including hydroxide, carbonate, and phosphate.

Management notes that lithium phosphate is the preferred product, as it is easy to refine. It also commands a price premium over hydroxide or carbonate and is…