Lithium Australia said on Monday it signed a deal with Mineral Resources (MinRes) to form a joint venture and develop a pilot plant that would produce lithium iron phosphate to be used in electric vehicle batteries. Iron ore producer MinRes will solely fund the development and operation of the pilot plant in Queensland with a total budgeted cost of A$4.5 million ($2.96 million) and provide raw materials at no costs to the company, Lithium Australia said.