Extracting greater value from the battery materials supply chain by diversifying revenue streams is a key strategic focus for Pilbara Minerals in line with our ambition to become a fully integrated battery materials supplier.
In joint venture (JV) with POSCO, a 43,000tpa Lithium Hydroxide Chemical Facility is under construction in Gwangyang, South Korea.
Pilbara Minerals has an 18% equity stake in the project and will supply spodumene concentrate from its Pilgangoora Operation in Western Australia under a long term offtake agreement.
The Facility places the Pilbara Minerals and POSCO Holdings joint venture as one of the few lithium chemicals producers outside of China.
Ramp up of production for Train 1 has commenced and construction of Train 2 is complete and commissioning has commenced. The certification process for the battery-grade lithium hydroxide is underway.
The Facility has the potential to produce up to 43,000 tonnes of lithium hydroxide per year at full capacity, enough to make batteries for around one million electric vehicles.
The development of a Mid-stream Demonstration Plant on site at the Pilgangoora Operation was approved by our Board in August 2023. The project, to be delivered in joint venture with Australian environmental technology company, Calix Limited, will demonstrate the potential to reduce carbon emissions intensity for the hard-rock lithium supply chain.
Successful demonstration of the technology could enable production of a mid-stream lithium enriched product at the Pilgangoora Operation that has:
We have a 55% interest in the JV (Calix 45%) and will oversee both the construction and operation of the project.
We will fund 79% of construction costs, with Calix contributing the remaining funds, and the Australian Government contributing $20M under the Modern Manufacturing Initiative.
Pilbara Minerals and Ganfeng signed a binding term sheet in March 2024, agreeing to complete a joint Feasibility Study for a potential downstream conversion facility to produce lithium chemicals.
The study will consider a conversion plant with capacity to produce ~32,000 tonnes per annum of lithium carbonate equivalent (LCE) of lithium chemicals (hydroxide and/or carbonate) along with a potential intermediate lithium chemical facility in Australia, leveraging Ganfeng’s extensive experience as a lithium chemical converter.
Operating costs, capital costs, fiscal incentives, and overall economics of a potential lithium chemicals plant in various jurisdictions together with a qualitative assessment of other relevant factors including ESG, permitting timeline and supply chain logistics will be considered as part of the study. Location assessment will focus on an agreed list of countries, including Australia, to explore greater geographical diversification in the battery chemicals supply chain. The outcomes of the Feasibility Study are expected in the March Quarter FY25, which creates an option for Pilbara Minerals and Ganfeng to progress to a final investment decision for the chemicals JV thereafter.