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Writer's pictureMichael Philipps

Lithium Universe lines up port for refinery

Updated: Apr 30


Lithium Universe has identified Bécancour Port as its preferred facility to import spodumene for its proposed lithium refinery. Credit: File

Lithium Universe (ASX: LU7) has settled on Bécancour Port within the city of Bécancour in Quebec, Canada as its preferred import facility for delivering spodumene to its proposed battery grade lithium carbonate refinery just 2.5kms away. Just last month the company secured a prime location for its proposed refinery after executing an option agreement to purchase a commercial property in the area.


The company says a systematic study undertaken into the most optimal point of import for third party spodumene required to feed its proposed refinery points to the Bécancour Port as the obvious choice.


The land selected to build the proposed refinery that Lithium Universe has under option is located between Quebec City and Montreal at the Bécancour Industrial Waterfront Hub, with heavyweight engineering firm Hatch contracted to undertake a comprehensive study for the refinery’s design.


The latest import study assessed the capabilities of key ports, including Trois-Rivières, Sorel, Québec, Montreal and Bécancour, to manage the importation and storage of lithium bearing spodumene.


Situated halfway between Montreal and Québec City, the Bécancour Port manages more than 3.6 million tonnes of cargo annually and is connected to both road and rail. The port also has the capacity to host nearly 200 ships each year.


Lithium Universe says now that Bécancour Port has been identified, the company will kick off discussions with the relevant authorities.


The spodumene delivery plan for the proposed refinery involves bulk shipments, with vessels ideally carrying a cargo quantity of 30,000 tonnes and a minimum shipment requirement of 10,000 tonnes per ship. The processing site is expected to consume about 10,000 tonnes of spodumene every four weeks.


Lithium Universe is looking to take advantage of what it says is 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 in the revered James Bay area that has thrown up some mega-lithium deposits to-date.


It says there are currently 20 major battery manufacturers planning to deploy an estimated 900GW of battery capacity in the area by 2028.


Lithium Universe says by 2030, Georgia, Kentucky, and Michigan are poised to dominate EV battery production in the US and will be joined by key players such as Kansas, North Carolina, Ohio, and Tennessee.


The refinery will also potentially source spodumene material from external locations near the Atlantic Ocean such as Brazil, Africa, or possibly further abroad to Australia.


Management says Canada’s recent focus on investing in battery plants, backed by collaborations with Volkswagen, Stellantis, LG Energy Solution, and Northvolt, will safeguard its auto sector, potentially creating 250,000 jobs and contributing C$48 billion (AU$54.4 billion) annually to the economy by 2030.


Currently, the company is focussed on the exploration and associated development of its own Apollo lithium project in the James Bay area. The operation in the province of Quebec covers about 240 square kilometres and includes 466 claims.


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.


Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au

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