Pilbara Minerals has completed a scoping study to explore the production of a new mid-stream lithium product from its Pilgangoora lithium operation in Western Australia.
It marks a key milestone in Pilbara Minerals’ ambition to diversify its lithium value chain. Pilgangoora ore is currently processed to produce spodumene concentrate which is shipped to international customers for use in lithium battery material production.
Pilbara Minerals signed a memorandum of understanding (MoU) with technology company Calix in July 2021 to explore a new and more sustainable refining process, with the end goal to create a mid-stream concentrated lithium salt product for lithium batteries.
The MoU involved the completion of a scoping study, which was undertaken in conjunction with Lycopodium Minerals. This established the technical blueprint for a demonstration-scale chemical plant which would produce lithium phosphate salts through an innovative refining process.
The scoping study was also the first economic valuation of the mid-stream project. Pilbara Minerals said more definitive studies would need to be completed to support a business case for the construction of the demonstration plant.
Further definitive studies will also explore the operating costs of a potential demonstration plant and whether there is a viable market for lithium phosphate.
The ASX-200 miner recognises the significant sustainability incentives of the mid-stream project, which would be powered by up to 100 per cent renewably sourced energy. It will also involve reduced waste movement requirements across transport and logistics supply chains.
The mid-stream project also aims to achieve improved lithium recovery from the ore resource.
Having completed the scoping study, Pilbara Minerals and Calix intend to proceed with negotiations to establish a joint venture. This would pave the way for the potential development of the demonstration plant, and commercialisation of the mid-stream product in the long run.