Neometals cost study shows tech benefit for lithium refinery
Neometals says an engineering cost study has earmarked processing technology developed by subsidiary Reed Advanced Materials as the most economic method for its proposed Estarreja lithium refinery in Portugal. The study was co-funded with Portugal’s biggest chemical producer, Bondalti, with the aim of developing a 25,000-tonne per annum lithium hydroxide operation in a 50-50 joint venture.
The proposed commercial refinery will be integrated with Bondalti’s existing chlor-alkali operations that share processing similarities with Reed’s trade-marked ELi electrolysis process. ELi is designed to produce lithium chemicals by replacing conventional and carbon-intensive chemical conversion of lithium chloride solutions with electrolysis. It uses commercially-available chlor-alkali equipment and the process has previously been tested for reliability in 100-hour and 200-hour mini-pilot scale trials.
Reed’s processing method recovers lithium from brines and spodumene concentrates to directly produce lithium hydroxide monohydrate.
Neometals says the latest study indicates a lithium brine conversion cost of €1768 (AU$2939) per tonne of battery-grade lithium hydroxide, with total initial capital costs of €405 million (AU$607 million). The Eli process also enables the production of valuable by-products, including chlorine and hydrogen.
A feasibility study completed in 2016 showed the potential for the ELi process to significantly reduce the operating cost and carbon footprint associated with consumption and transport of carbon-intensive reagents used in conventional lithium refining processes.
Neometals managing director Chris Reed said: “The combination of Bondalti’s operating experience with RAM’s innovative Eli™ process for lithium brine concentrates can deliver a much-needed domestic supply of lithium hydroxide in the EU. Furthermore, we are excited about the prospect of marketing a technology that can deliver a potential step-change in operating cost to developers of lithium brine sources.”
The company’s proposed refinery in the town of Estarreja could become the first commercial-scale operation utilising ELi to enable an ethical supply of lithium chemicals for Europe’s burgeoning electric vehicle battery industry.
Neometals says ELi could potentially slash capital and operational costs for both spodumene and brine lithium projects by “radically” reducing the need for reagents and their transport. It could also reduce the environmental impact of lithium carbonate and lithium hydroxide production, the company says.
Sourcing lithium chemicals with a reduced carbon footprint is a high priority for the electric vehicle industry and management believes ELi could potentially boost efforts to decarbonise the lithium-ion battery supply chain.
Neometals says further evaluation work is required before it can determine the viability of the Estarreja lithium refinery. However, the company expects the commissioning and commencement of the operations of the plant to be in place by the start of 2027.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au