Highlights

• Definitive feasibility study (DFS) advancing well for the Bécancour Lithium Refinery project.
• A 3D model and plot plan layout finalised, aiding in design visualisation.  .
• Significant milestones achieved include the completion of process flow sheets.
• Procurement efforts focus on sourcing equipment from reliable suppliers to ensure consistency and quality.
• LU7 shares rose by 5.882%, trading at AU$0.018 per share as of 4 June 2024.

Lithium Universe Limited (ASX: LU7) has provided a promising update on the DFS engineering work for its Bécancour Lithium Refinery project. Hatch Ltd, managing the study, has completed critical elements, including the process flow sheets and stream tables.

The company has developed a preliminary 3D model and plot plan layout, offering a detailed visual and spatial representation of the refinery’s design. The model assists in visualising the placement of infrastructure and equipment, ensuring efficient space utilisation while allowing for future modifications.

The refinery layout has been designed with the following factors in mind:

• Safety standards and best practices;
• Material compatibility;
• Effective process flow; and
• Adequate spacing for plant operation

Procurement efforts are advancing, focusing on sourcing the majority of equipment from suppliers used for the Jiangsu reference plant.

This strategy leverages existing relationships to ensure reliable and high-quality components, maintaining consistency and mitigating risks associated with scheduling disruptions due to increased demand for construction materials and skilled tradespeople in North America. Moreover, engagement with selected suppliers aims to secure firm pricing, mitigation of financial risks, and control costs.

Lithium Universe Bécancour Lithium Refinery 3D Model (Image source: Company update)

Progress of the engineering study

The engineering study, managed by Hatch Ltd, has achieved multiple milestones, with critical elements already finalised. Essential documents such as stream tables and process flow sheets, which manage material and energy flow through the refinery, detailing processing steps and interconnections within the plant, have been completed.  

To prepare a comprehensive capex estimate, material take-offs (MTOs) are being performed, ensuring a detailed financial plan for the construction and operational phases of the project.