Lithium Universe inks key Canadian cement additive deal

Lithium Universe has inked a non-binding memorandum of understanding to exclusively supply a key cement additive to Canada’s biggest cement manufacturer, Lafarge Canada.

Aluminosilicate is made up of silica, aluminium oxide and ferric oxide and will be a secondary byproduct from the lithium carbonate production circuit at Lithium Universe’s planned Bécancour refinery in Quebec.

The byproduct adds substantial value to the cement manufacturing industry as it significantly enhances the building material’s load-bearing strength and reduces its production costs.

Because of its fine particle size and large specific surface area, aluminosilicate also improves reactivity and utility in cement production.

Studies have shown that infusing cement with 30 per cent aluminosilicate can ratchet up its load-bearing strength by a remarkable 132pc in a 28-day period and 174pc after three months compared to ordinary Portland cement. 

Lafarge Canada is set to also make significant cost-savings, as partially replacing traditional cement raw materials with aluminosilicate lowers production costs and reduces the carbon footprint of cement manufacturing.

Lithium Universe chairman Iggy Tan said: "This collaboration with Lafarge will not only advance our focus on building Bécancour Lithium refinery's secondary product supply chain but also strengthens local supply chains, fostering a more circular economy in Québec and contributing to greener construction materials.”

Lithium Universe commissioned Canadian-based engineering consultants Hatch Ltd to design its lithium refinery, which it hopes will exactly mirror the processing plant previously developed by the same engineers for the Jiangsu lithium carbonate facility in China. The successful Chinese plant has since set a global benchmark for lithium refineries.

By leveraging proven technology, Lithium Universe is setting itself an ambitious target to produce up to 18,270 tonnes per yearof green battery-grade lithium carbonate, initially focusing on supplying lithium iron phosphate batteriesfor the booming EV sector.

A prefeasibility study handed down a few months ago delivered a pre-tax net present value of US$779 million (A$1.24 billion) and an annual EBITDA of US$147m (A$235m).

The company has assumed a medium price assumption of US$1170 per tonne (A$1872/t) for spodumene concentrate and US$20,970/t (A$33,500/t) for battery-grade lithium carbonate. Based on a capital cost of A$790m the company expects a payback period of 3.5 years for the 20-year operation.

Its operating costs are expected to level out at a healthy US$3976/t (A$5978/t) of lithium carbonate, with hydroelectric power provided by Hydro Québec reducing the plant’s greenhouse gas emissions by 95pc.

The refining process will generate nearly 130,000t of  aluminosilicate byproduct annually. In turning this waste into cash, management says its manufacturing plant will power the future of batteries and build a greener construction industry.

Since Canada’s cement sector is going through a stage of rapid growth, Lithium Universe says the MoU has landed at an opportune moment. 

Canada’s building sector is booming, with revenues from the sale of the building material soaring to C$12.3 billion (A$1.35b) in 2021 - a 14pc jump from the previous year. At the same time, production volumes surged to 13.8 million metric tonnes in 2022, fuelled by major infrastructure investments and a growing shift toward eco-friendly construction solutions. 

As negotiations between Lithium Universe and Lafarge move towards a definitive supply agreement, the company is continuing with its plans to prepare for what some see as the inevitable revival of the lithium price driven by increased lithium carbonate demand on the back of the global energy transition.

Lithium Universe’s strategy is counter-cyclical, since a plan to move its project forward during time of market downturns gives the company plenty of time to complete and capitalise on future market recoveries. 

With feedstock sourced from North America, Brazil and Africa, Bécancour is being positioned to contribute significantly to the North American lithium supply chain. By adding an additional revenue stream with aluminosilicate production, Lithium Universe is also potentially buying itself significantly improved project economics.

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