Having also secured environmental approvals, Avenira can move to extract a bulk sample for testing.

If that is successful the company will start a direct shipping ore operation at Wonarah.

NT chief minister Natasha Fyles said the granting of the two mineral leases to Avenira would help position the Territory as the next Australian home of advanced manufacturing.

"With the potential to create 1000 jobs this project will benefit Territorians from the Top End to the Barkly," she said.

The Wonarah deposit could include a lithium ferro phosphate battery cathode manufacturing facility, which would source phosphate from the deposit.

The project could potentially generate more than $5.96 billion once in full production.

Avenira chairman and chief executive officer Brett Clark said with mineral leases in hand, work could start on test pit activities as an interim stage to DSO production.

"Wonarah test pit will set up the logistic supply chains that will enable future DSO production and underpin the important role that Wonarah can play in the development of a downstream LFP battery cathode manufacturing facility in the NT," he said.

"We would like to acknowledge the NT government for their support."

NT mining minister Nicole Manison said the NT had what it took to be a thriving economy with world-class mineral deposits, prospective gas reserves, a strong agriculture sector, emerging information technology capabilities and strategic advantages as a location for trade and defence.

"Avenira being awarded these two mineral licenses means the project is getting off the ground and will support jobs and development in our regions," she said.