Pilbara Minerals $104m plant a go

Pilbara Minerals’ board has given the green light to pour $104.9 million into constructing a demonstration plant at its Pilgangoora operations.

The lithium producer and its joint venture partner Calix today announced the final investment decision to construct and operate a mid-stream demonstration plant at its lithium project near Port Hedland.

According to the partners, the project aims to demonstrate the use of Calix’s patented electric kiln technology, which it says has the potential to reduce hard-rock lithium processing carbon emission intensity if powered by renewable energy.

Once the plant is online, Pilbara could use the electric calcination technology for its mid-stream or downstream commercial scale plants, potentially developed at Pilgangoora or other locations.

Pilbara Minerals will fund the majority of the $104.9 million construction cost, with the federal government contributing $20 million under the Modern Manufacturing Initiative.

The parties plan to start construction in the June quarter of 2024 after completing detailed engineering work in the prior quarter.

The plant is tipped to produce its first lithium salt in the June quarter of 2025, with ramp up to steady state production the following year.

“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 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 commercialization JV with Calix.

“This could in time open up an additional revenue stream for the company."