Market predictions indicate global lithium demand will only increase into the future, and Mineral Resources (MinRes) wants its piece of the pie.
MinRes’ long-term vision is to capture more of the battery supply chain.
“Onshoring hydroxide processing could be the catalyst to bring in further international partners in the battery supply chain,” the miner said in an investor presentation.
“MinRes is uniquely placed from hard-rock mining to processing, with potential to partner US, European and Asian auto makers for the Australian manufacture of battery cells.
“Hydroxide processing is the first step in building this capability and towards MinRes becoming Australia’s first battery cell manufacturer.”
MinRes has a five-year plan to produce approximately 117,500 tonnes per annum (tpa) of lithium hydroxide via its Mt Marion and Wodgina spodumene mines in Western Australia.
Mt Marion would account for 40,000tpa of lithium hydroxide, Wodgina would account for 70,000tpa, with Trains 1 and 2 of MinRes’ Kemerton lithium hydroxide joint venture (JV) making up the remaining 7500tpa.
MinRes is engaged in a JV with Albemarle Corporation regarding Wodgina and Kemerton. The companies announced an expansion of the partnership in February, which would see Wodgina owned 50:50 between the two.
The mine had previously been split 60:40 between the two companies, with Albemarle owning the primary interest.
The expansion will also see MinRes and Albemarle enter a new 50:50 JV, whereby the two companies will equally fund additional lithium conversion assets outside of Australia. Albemarle would be the operator of these assets.
Coinciding with its increased stake in Wodgina, MinRes would decrease its interest in Kemerton from 40 per cent to 15 per cent.
Construction of Kemerton and its first two processing trains was completed this year and first production was achieved in July. The plant is currently in the commissioning phase, with the product undergoing the qualification phase.
Kemerton is being fed by the Greenbushes mine in WA, owned by a joint venture of Albemarle (49 per cent) and IGO/Tianqi Lithium Corporation (51 per cent).
MinRes said it expected to complete the $120 million two-stage upgrade of its Mt Marion operation by December 2022, which would unlock 900,000tpa of mixed grade spodumene.
Wodgina Train 1 is producing spodumene at nameplate 250,000tpa capacity, while Train 2 produced first spodumene in July 2022. Train 3 is preparing for commissioning with earliest production set for mid-2023 (subject to market conditions).
MinRes said it will also be making a decision whether or not to construct Train 4 at Wodgina.