Lithium Universe Limited (ASX: LU7) has signed a non-binding Memorandum of Understanding (MOU) with Lafarge Canada Inc., a leading Canadian cement producer and part of the Holcim Group, for the exclusive supply of Aluminosilicate product (ACSR) from its Bécancour Lithium Refinery.
ACSR is a by-product of lithium refining that can be used as an additive in cement production. It improves compressive strength, enhances durability, reduces heat generation, and fills gaps in the concrete matrix. The material, which contains silica (SiO2), aluminium oxide (Al2O3), and ferric oxide (Fe2O3), has been successfully used in cement production at the Jiangsu Lithium Refinery in China.
The MOU provides a framework for the parties to work towards a definitive supply and purchase agreement. If finalised, this agreement would see Lafarge exclusively sourcing all ACSR produced from the Bécancour facility.
The Canadian cement industry has experienced significant growth, with a market size estimated at $2.1 billion in 2025. However, it has also faced a decline in recent years, with a compound annual growth rate (CAGR) of -3.8% due to changing market dynamics. Despite this, the sector remains a major contributor to the economy, employing over 166,000 people and generating an annual economic impact of approximately $76 billion.
Lithium Universe plans to leverage this partnership to establish a strong market for ACSR in North America. By integrating ACSR into cement production, the company aims to reduce waste from lithium refining and contribute to a circular economy. This initiative aligns with Holcim’s sustainability goals, which focus on decarbonising building materials and increasing the use of low-carbon alternatives.
Lithium Universe Chairman, Iggy Tan, welcomed the agreement, stating:
“This is great news for Lithium Universe as we partner with Lafarge Canada Inc. to enhance the North American battery materials supply chain and promote sustainable innovation in Canada’s cement industry. This collaboration will not only advance our focus on building Bécancour Lithium Refinery’s secondary product supply chain but also strengthen local supply chains, foster a more circular economy in Québec, and contribute to greener construction materials.”
Both companies will now proceed with further negotiations to finalise the terms of a binding supply agreement.
