Highlights
The Lithium Universe Strategy
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Positive, robust Bécancour Refinery PFS even in low pricing environment
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LU7 has a counter cyclical strategy – develop project, ready for price recovery
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Closing the Lithium Conversion Gap – growth in resource and end market projects
The Financial Modelling
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Economically viable with excellent pre-tax NPV8% of approximately US$779M
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IRR (pre-tax) of approximately 23.5% and payback of 3.5 years based on;
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Price forecast of US$1,170/t SC6 and US$20,970/t for battery grade Li2CO3
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Current spot price is approx. US$775/t SC6 and US$10,680/t for battery grade LC
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Operating costs at around US$3,976/tonne; capital cost estimate of US$494 million
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Expected annual revenue of approx US$383 million and EBITDA of around US$147 million
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Project break even at around US$780 /t (SC6) and around US$14,000 per tonne LC
The Design
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LU7 offers a solution to worldwide lithium conversion failures and startup problems
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Using proven Jiangsu Refinery operating technology and lithium industry experience
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Producing up to 18,270 tonnes/year of green battery-grade lithium carbonate
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Smaller off-the-shelf style plant rather than large difficult-to-operate facilities
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Initial focus on lithium carbonate production – feed for LFP batteries
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Assumptions based on real operating data and experience – not new aspirant
The Location
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Québec ideal trans-Atlantic lithium conversion centre, comparable to China
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Feedstock from Canada, Brazil and Africa – end market North America
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Critical cost benefits – cheap green power, transport mine/end market savings, US/Canada tariffs
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95% GHG emission reduction with Hydro Québec's green energy
Next Steps
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Offtake discussions with interested OEMs underway
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LU7 continues to progress full Definitive Feasibility Study
For more information, download the attached PDF.
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