Pilbara Minerals Limited and Ganfeng Lithium Group Co have signed a binding term sheet to complete a joint feasibility study for a potential downstream conversion facility.
The feasibility study will consider a conversion plant that could produce about 32,000 tonnes of lithium carbonate equivalent of lithium chemicals per annum.
The feasibility study will evaluate factors such as location, fiscal incentives, flowsheet, sustainability and economics of the potential lithium chemicals plant, alongside a qualitative assessment of other factors including ESG, permitting timeline and supply chain logistics.
“We are delighted to have selected our long-standing customer, Ganfeng, to join us in taking the next step towards a major downstream facility for lithium battery chemicals production,” Pilbara Minerals managing director and chief executive officer Dale Henderson said.
“This incremental move supports our strategic aim to capture greater value through the supply chain and realise the benefits of supply chain integration.
“The feasibility study provides an important first step, enabling our two companies to combine our efforts in exploring a preferred location and optimal flowsheet for a downstream lithium chemicals facility which will maximise project economics while meeting agreed sustainability standards.”
The feasibility study is expected to be completed in the March 2025 quarter.
Once completed, Pilbara Minerals and Ganfeng have the option to proceed to a final investment decision for a jointly owned lithium chemical facility through a 50:50 joint venture.
“We are very pleased to be growing our relationship further with Pilbara Minerals, a trusted partner which has proved to be a reliable and capable supplier of lithium concentrate over the last six years,” Ganfeng president and vice chairman Wang Xiaoshen said.
“This feasibility study marks an important step as we jointly pursue the best growth opportunities. We look forward to working with Pilbara Minerals to leverage our expertise in lithium chemical conversion to develop the investment case for a globally competitive lithium chemicals joint venture to service leading customers in the lithium-ion supply chain.”