A plan to redouble capacity at Talison Lithium’s Greenbushes mine was lodged with the federal government’s environmental regulator last week, while US-based Albemarle Corporation has updated its timeframe for a Kemerton refinery.
A plan to redouble capacity at Talison Lithium’s Greenbushes mine was lodged with the federal government’s environmental regulator last week, while US-based Albemarle Corporation has updated its timeframe for a Kemerton refinery.
Talison, which is jointly owned by Albemarle and Chinese company Tianqi Lithium, has a $320 million expansion at Greenbushes already under way.
That would increase production to be about 1.3 million tonnes of lithium concentrate per annum by building a new concentration plant, around double the existing level.
Documentation submitted to the federal Department of the Environment and Energy is for approval of a further doubling of production.
“The expansion will increase throughput at the Greenbushes operation from the current 4.7mtpa to 9.5mtpa of spodumene ore to produce up to 2.7mtpa of lithium mineral concentrate,” the environmental application said.
“Two new chemical grade processing plants ... will be established to the west of Maranup Ford Road (near Greenbushes townsite).
“A two-stage crushing circuit, Talison crusher three, will also be established to the east of the road to supply the plants.
“Each plant will have a design capacity of up to 2.4mtpa and will produce a combined total of up to 1.05mtpa of lithium mineral concentrate at approximately 6 per cent lithium oxide.
“The plants will be a near identical replication of (the plant) which is currently under construction.”
Business News has previously estimated the latter stage expansion at Greenbushes will cost upwards of $500 million, meaning the two expansion projects will involve a capital investment of nearly $1 billion.
Processing play
In the company’s quarterly earnings call with analysts, Albemarle chief executive Luke Kissam said that business would make capital investments of up to $675 million in 2018 alone.
Albemarle is planning a lithium hydroxide processing refinery at Kemerton, near Bunbury, one of four under consideration in WA to follow the Tianqi refinery being built in Kwinana.
“Engineering activities have commenced at Kemerton for a new lithium hydroxide plant with expectations to commission the first 40,000tpa (of capacity) in 2021,” Mr Kissam said.
The business has previously said it has achieved approval for up to 100,000tpa at Kemerton, with further capacity to be brought online in stages.
Mr Kissam said there were encouraging signs from two major automakers in recent months that implied big growth in electric vehicle manufacturing and, consequently, demand for lithium to make batteries.
“During the past few months, for example, both Volkswagen and Volvo made commitments to significant electrification of their vehicle fleet by 2025,” he said.
“These recent announcements are good indicators not only of the size of the investments … but also the timing.
“To reach their targeted sales of 2 million to 3 million electric vehicles by 2025, Volkswagen will convert nine production lines to electric vehicles by 2020 and a further seven lines by 2022.
“Volkswagen plans to contract for approximately 150 gigawatt hours of battery capacity per year to supply those lines.”
That was matched by a move towards longer-term contracts.
Automakers wanted secure supply to offer 10-year warranties on batteries, according to an Albemarle spokesperson.
“We see a strong pull from the leading providers of batteries and cathodes to go to as long as 10 year agreements,” the spokesperson said.
“The rationale … is security of supply.”
