Lithium Universe inks key Canadian cement additive | Australian Markets

Lithium Universe has inked a non-binding memorandum of understanding to completely provide a key cement additive to Canada’s greatest cement producer, Lafarge Canada.

Aluminosilicate is made up of silica, aluminium oxide and ferric oxide and will likely be a secondary byproduct from the lithium carbonate manufacturing circuit at Lithium Universe’s deliberate Bécancour refinery in Quebec.

The byproduct provides substantial worth to the cement manufacturing industry because it considerably enhances the building materials’s load-bearing power and reduces its manufacturing prices.

As a result of of its tremendous particle measurement and enormous particular floor space, aluminosilicate additionally improves reactivity and utility in cement manufacturing.

Research have proven that infusing cement with 30 per cent aluminosilicate can ratchet up its load-bearing power by a outstanding 132pc in a 28-day period and 174pc after three months in comparison with odd Portland cement.

Lafarge Canada is set to additionally make important cost-savings, as partially changing conventional cement uncooked supplies with aluminosilicate lowers manufacturing prices and reduces the carbon footprint of cement manufacturing.

This collaboration with Lafarge won’t solely advance our give attention to building Bécancour Lithium refinery’s secondary product provide chain but additionally strengthens native provide chains, fostering a more round economic system in Québec and contributing to greener construction supplies.

Lithium Universe commissioned Canadian-based engineering consultants Hatch Ltd to design its lithium refinery, which it hopes will precisely mirror the processing plant beforehand developed by the identical engineers for the Jiangsu lithium carbonate facility in China. The profitable Chinese language plant has since set a international benchmark for lithium refineries.

By leveraging confirmed technology, Lithium Universe is setting itself an formidable goal to provide up to 18,270 tonnes per 12 months of inexperienced battery-grade lithium carbonate, initially specializing in supplying lithium iron phosphate batteries for the booming EV sector.

A prefeasibility research handed down a few months in the past delivered a pre-tax web current worth of US$779 million (A$1.24 billion) and an annual EBITDA of US$147m (A$235m).

The company has assumed a medium price assumption of US$1170 per tonne (A$1872/t) for spodumene focus and US$20,970/t (A$33,500/t) for battery-grade lithium carbonate. Based mostly on a capital value of A$790m the company expects a payback period of 3.5 years for the 20-year operation.

Its working prices are anticipated to degree out at a healthy US$3976/t (A$5978/t) of lithium carbonate, with hydroelectric energy offered by Hydro Québec decreasing the plant’s greenhouse fuel emissions by 95pc.

The refining course of will generate almost 130,000t of aluminosilicate byproduct yearly. In turning this waste into money, management says its manufacturing plant will energy the long run of batteries and construct a greener construction industry.

Since Canada’s cement sector goes by means of a stage of speedy growth, Lithium Universe says the MoU has landed at an opportune second.

Canada’s building sector is booming, with revenues from the sale of the building materials hovering to C$12.3 billion (A$1.35b) in 2021 – a 14pc soar from the earlier 12 months. On the identical time, manufacturing volumes surged to 13.8 million metric tonnes in 2022, fuelled by main infrastructure investments and a growing shift towards eco-friendly construction options.

As negotiations between Lithium Universe and Lafarge transfer in direction of a definitive provide settlement, the company is constant with its plans to arrange for what some see because the inevitable revival of the lithium price pushed by elevated lithium carbonate demand on the back of the worldwide power transition.

Lithium Universe’s strategy is counter-cyclical, since a plan to maneuver its project ahead during time of market downturns provides the company loads of time to finish and capitalise on future market recoveries.

With feedstock sourced from North America, Brazil and Africa, Bécancour is being positioned to contribute considerably to the North American lithium provide chain. By including an extra income stream with aluminosilicate manufacturing, Lithium Universe can also be doubtlessly shopping for itself considerably improved project economics.

Is your ASX-listed company doing one thing fascinating? Contact: [email protected]