As it looks to advance itself downstream, Pilbara Minerals will look to build a demonstration plant to explore a new lithium product.
The company board gave the green light for the Pilbara and Calix joint venture (JV) to construct a plant to explore the possibility of producing mid-stream lithium phosphate.
Pilbara Minerals believes there is a product before downstream materials such as lithium hydroxide and lithium carbonate that could unlock new opportunities for the sector.
In particular, this mid-stream project would look to reduce the carbon intensity of the hard-rock lithium supply chain, which has typically involved an intensive extractive and processing procedure.
The demonstration plant would look to use electric calcination to create the mid-stream product. This would be powered by renewable energy.
“Market engagement with participants in the battery and chemicals supply chain has encouraged the pursuit of the mid-stream product and confirmed that it has strong potential to be an improved lithium feedstock for the lithium chemicals industry,” Pilbara Minerals said in a statement.
“Life cycle assessment studies commissioned by Pilbara Minerals have calculated that when using 100 per cent renewable electricity for electric calcination, the carbon emissions intensity of spodumene calcination can be reduced by more than 90 per cent when compared to using coal as the primary source of thermal energy in rotary kiln calcination, and by more than 80 per cent when compared to the use of natural gas.”
Pilbara Minerals and Calix have budgeted $104.9 million for the construction of the demonstration plant, which will be funded 79 per cent by Pilbara and 21 per cent by Calix.
The Federal Government has committed $20 million to the project as part of its Modern Manufacturing Initiative (MMI).
Construction on the demonstration plant is expected to commence in the June quarter of 2024, with commissioning of concentrate processing to begin in the March quarter of 2025.
First production is slated for the June quarter of 2025, before reaching steady-state production in the March quarter of 2026.
“The mid-stream strategy has potential to materially improve the battery materials supply chain for lithium through reduction in carbon energy intensity, reduction in transport volumes and creating more value at the mine site,” Pilbara Minerals managing director and chief executive officer Dale Henderson said.
“It has the potential to be a game changer compared to the traditional spodumene-to-chemicals-processing route.
“The demonstration plant with Calix is an important step to further the development of the technology with the aim of commercialising the technology for application at the Pilgangoora operation and across the lithium industry through our commercialisation JV with Calix.
“This could in time open up an additional revenue stream for the company.”
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