Lithium Universe is planning to build a lithium carbonate plant in Canada. Pic: via Getty Images.
Mining
Special Report: Lithium Universe has secured prime industrial property in the Bécancour Waterfront Industrial Hub (BWIP) for its multi-purpose battery-grade lithium carbonate refinery – which will form part of the company’s Québec Lithium Processing Hub (QLPH) strategy.
The BWIP was determined as the preferred site for the company’s 16,000tpa lithium carbonate plant via comprehensive location option study conducted by Hatch.
Notably, the BWIP site is also just 1km down the road from General Motors/POSCO Cathode factory and the Ford/EcoProBM Cathode factory and 140km from Northvolt’s EV battery facility near Saint-Basile-le-Grand.
With over 20 large scale battery manufacturers on the east coast of North America and with spodumene the preferred feedstock, Lithium Universe (ASX:LU7) says it’s becoming clear that Québec is poised to become a driving force in the emerging EV battery ecosystem in North America.
According to a multitude of reports, the East Coast of North America is expected to witness a substantial surge in battery manufacturing over the next few years, with +20 major battery manufacturers planning to deploy an estimated 900GW of battery capacity by 2028.
By 2030, the US states of Georgia, Kentucky and Michigan are all poised to dominate EV battery production in the US, joining established jurisdictions such as Kansas, North Carolina, Ohio and Tennessee.
These states aim to collectively manufacture between 97GWh and 136GWh of EV batteries annually.
To meet the escalating demand for EVs, North America’s battery manufacturing capacity must skyrocket from 55GWh just a few years ago to nearly 1,000GWh by 2030. The estimated investment for such growth is +US$40 billion.
Up to 13 million “all-electric” vehicles annually are expected to be produced in the US alone over the next six years.
Canada is also expanding its network of battery plants with the likes of Volkswagen, Stellantis, LG Energy Solution and Northvolt all making recent investment in the country’s auto sector, potentially creating 250,000 jobs and contributing C$48 billion annually to the economy by 2030.
There is a scarcity of independent lithium converters planned for construction in North America, however, and LU7 notes a significant gap in lithium conversion and processing looms in the US and Canada.
LU7 estimates some 800,000t of LCE per annum will be required to satisfy demand in those countries, assuming planned battery manufacturing capacity of 900GWh by 2028 and using a ratio of 850g LCE per KWh.
The company’s strategy to develop a lithium carbonate refinery, rather than lithium hydroxide refinery, is due to the widespread use of the concentrate in the fast-growing Lithium Iron Phosphate (LFP) batteries.
The purchase price is C$12.6m, plus infrastructure works, which nets the company a strategic location offering proximity to road, rail, and port facilities and cutting-edge infrastructure equipped with essential utilities.
The site is also right next to a port, which makes it a strategic fit as the location of the plant due to its ability to easily access international spodumene supply.
“This is just another positive step forward for the company as we secure this key landholding in the most attractive emerging battery-focussed jurisdiction,” LU7 chairman Iggy Tan said.
“Québec’s low-cost hydroelectricity, high environmental standards, and educated workforce, as well as the location’s logistical advantages, including a deepwater port and easy rail access to the rest of North America, were key factors in the decision,” Tan said.
“One of the reasons we like the site is that it gives us the opportunity to expand.
“We have the ability to do that if necessary.”
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.
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