Lithium Universe confirms in a prefeasibility study (PFS) for the Brownsville Lithium Carbonate Refinery project, in Texas, strong viability for a lithium conversion project even within a below-average pricing environment.
Based on long-term pricing assumptions of $1 170/t for SC6 spodumene concentrate and $20 970/t for battery-grade lithium carbonate, Brownsville has a pre-tax net present value of $787-million and internal rate of return of 21%, with a payback period of 3.9 years.
For a capital investment of $607-million, the refinery can produce 18 270 t/y of battery-grade lithium carbonate at an operating cost of $3 566/t and generate yearly earnings before interest, taxes, depreciation and amortisation of $161-million.
Lithium Universe says the Brownsville project can close the North American lithium conversion gap by establishing domestic lithium chemical production capacity, which is positioned to benefit from growing electric vehicle and battery storage demand. Lithium chemical production in North America will also be supported by increasing regional lithium resource development.
The company will leverage proven Jiangsu lithium conversion technology and operating experience to reduce technical and execution risk.
Lithium Universe affirms that Brownsville offers a practical solution to lithium refinery start-up challenges by adopting proven technology rather than developing untested processes.
The company envisions a modular, manageable refinery scale designed to minimise operating complexity.
Lithium Universe will focus on publishing a definitive feasibility study (DFS) on the project next, as well as start with detailed engineering activities; secure the proposed refinery site through long-term lease arrangements with the Port of Brownsville; advance permitting, environmental and site investigation programmes; finalise long-term spodumene supply arrangements, including with suppliers in Brazil and Africa; and progress strategic financing and project partnership discussions.
For context, Lithium Universe‘s Bécancour Refinery in Québec is a flagship, advanced-stage project with a completed DFS, while the Brownsville Refinery in Texas is a complementary, early-stage secondary initiative designed as a direct replication of the Canadian plant.
Importantly, the Bécancour DFS was prepared in late 2024 and early 2025, which was a time when the lithium industry experienced the lowest point of a significant cyclical downturn. Battery-grade lithium carbonate prices had fallen to between $10 000 and $11 000/t as a result of global oversupply, elevated inventories, delayed purchasing activity and production curtailments in mining and conversion sectors.
Since then, lithium prices have recovered to levels above $25 000/t, which reflects a substantially improved pricing environment for lithium producers and downstream converters. Since Lithium Universe used a low price assumptions for the Brownsville PFS and Bécancour DFS, higher lithium carbonate prices have the potential to materially improve operating margins, cashflow generation and overall project economics for both projects.