Lithium Universe makes haste towards Bécancour DFS in the March 2025 quarter

Lithium Universe is on track to complete the Bécancour DFS in the March 2025 quarter
Quick progress is due to leveraging data from reference plant, the Jiangsu refinery in China
Company currently finalising the procurement strategy and material take-offs

Special Report: Lithium Universe continues to break speed records with confirmation the definitive feasibility study for its Bécancour lithium refinery in Quebec remains on track for release in the March 2025 quarter.

If met, this will come less than six months since the release of the pre-feasibility study on September 30, 2024, which was in turn released less than 12 months after Lithium Universe (ASX:LU7) engaged Hatch to conduct the engineering study.

Bécancour would help close a lithium conversion gap in North America, which has millions of tonnes of lithium carbonate equivalent resources but a yawning chasm when it comes to chemical conversion capacity.

Conversion to a lithium chemical is an essential step to take mined product and prepare it for lithium-ion battery production, but one almost entirely completed currently in China.

That’s an issue for US, Canadian and EU carmakers in need of domestic or friendly sources of supply for their emerging EV markets.

A quick turnaround on feasibility studies for the proposed processing plant will enable LU7 to make the most of this opportunity.

Bécancour will use proven operating technology from the Jiangsu refinery in China, itself designed and constructed following strict Australian and international standards to mitigate technology risks.

The US$3976 price tag for a tonne of Bécancour carbonate is also more attractively priced than similar products from China due to the added transport costs and tariffs.

Current DFS progress

LU7 is currently finalising capital cost estimates for the DFS.

While major engineering activities such as finalisation of the plant layout and key tasks like creating the main power distribution single-line diagram have been completed, the company still needs to obtain the remaining fixed priced quotations from vendors.

This supplied pricing program is now 80% complete.

Additionally, the company is finalising the procurement strategy and material take-offs as well as tailoring the engineering design to new site conditions.

“The project is on track to complete the DFS next quarter. Leveraging extensive data from our reference plant has significantly streamlined the process, making it both faster and more cost-effective,” head of lithium refinery John Loxton said.

“We’re primarily updating prices for the same plant and equipment we’ve used before, often working with the same suppliers, which ensures more accurate quotations and reduces the risk of cost overruns.

“While some new work includes civil and design specific to the new site conditions, the majority of the engineering has been based on the reference plant.”

This article was developed in collaboration with Lithium Universe, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.