Lithium Universe (ASX: LU7) says it is making significant progress in definitive feasibility study (DFS) work for its proposed Bécancour lithium refinery in Canada, with process flow sheets and stream tables already finalised.
The company has plans for a 16,000 tonnes per annum battery-grade lithium carbonate refinery in the North American nation, with heavyweight engineering firm Hatch commissioned to undertake a comprehensive study for the refinery’s design. Management says a preliminary 3D model and plot plan layout have been developed, ensuring efficient space utilisation and facilitating future modifications, if necessary.
Lithium Universe has plenty of experience in developing lithium refineries, including the Jiangsu lithium carbonate refinery in China that was built by its executives Iggy Tan, Dr Jingyuan Liu and John Loxton during their time with Galaxy Resources. Tan, Liu and Loxton previously worked with Hatch on the design, construction and commissioning of the Jiangsu plant, which was subsequently sold to China’s Sichuan Tianqi Lithium in 2014 for a cool $132 million.
The relationships developed while building the Jiangsu plant are expected to benefit the company’s procurement plans for its Canadian refinery, with a focus on sourcing major equipment from the same suppliers. Management says active negotiations with selected suppliers are aimed at securing firm pricing, helping to control costs and mitigate financial risks.
Infrastructure development and utility connections at the site are already underway, addressing water supply, power and transportation links.
The Hatch team engaged for this project is dynamic, practical and experienced, fully understanding our strategy to fast-track the DFS process by leveraging the insights and proven technology from the Jiangsu Lithium Carbonate reference plant. Hatch can easily apply their knowledge on this project as the original designer and builder of the reference project as well as any other lithium plants in their impressive portfolio of projects.
Lithium Universe chairman Iggy Tan
The company is seeking to cash in on an expected increase in lithium battery plant activity on the east coast of North America by positioning a lithium carbonate plant near Bécancour. The plant will look to refine spodumene on behalf of the multitude of potential lithium miners that are flooding into the broader region, including those situated in Canada’s James Bay area that has thrown up some impressive lithium deposits to date.
Management will focus on lithium carbonate rather than lithium hydroxide due to its widespread use in the fast-growing lithium iron phosphate (LFP) batteries. LFP batteries are increasingly used in electric vehicle (EV) applications due to their lower costs, longer shelf life and superior stability when compared with lithium hydroxide.
In February, the company secured a prime location for its proposed refinery after executing an option agreement to purchase a commercial property in the province of Quebec. The facility is located between Quebec City and Montreal at the Bécancour Industrial Waterfront Hub.
Lithium Universe is also exploring its Apollo lithium project in James Bay, covering about 240 square kilometres and including 466 claims.
The site is considered a greenfield project with limited historical exploration. Quebec’s Ministry of Natural Resources and Forests has identified 17 outcrops on the property as being dominantly pegmatite-hosted.
Apollo was staked early last year by a private owner and is on the same trend as and adjacent to ground owned by Patriot Battery Metals and Winsome Resources – both of which have hit thick, shallow and high-grade coarse spodumene mineralisation during drilling.
With a host of significant lithium discoveries in the region, Lithium Universe is focused on ticking off crucial development milestones at its proposed refinery in a bid to build on the success of explorers in the James Bay area more broadly in North America.
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