Lithium Universe (ASX: LU7): Aiming to bridge the North American lithium gap - Kalkine Media

Highlights

• LU7 is actively progressing the development of its Quebec Lithium Processing Hub (QLPH) to bridge the lithium conversion capacity gap in North America.
• It has acquired a strategic strategically positioned industrial property within BWIP.
• Hatch Ltd is conducting an engineering study for the refinery, aiming for a 16,000 tpa capacity with a feed grade of 5.5% Li_2.
• LU7 has begun metallurgical testing on various spodumene sources using the flow sheet designed for the QLPH refinery.

Lithium Universe Limited (ASX: LU7) is actively striving to establish itself as a prominent lithium project developer by advancing projects in Australia and Canada.

Currently, one of its prime missions is to build a spodumene-producing mine in Québec, Canada. The firm boasts a highly qualified ‘Lithium Dream Team’ with years of experience and expertise to operate profitable projects.

Image Source: Company PPT

The company states, “We are here to build a Lithium project in Canada as quick as we can.” But why Canada? According to Mr Lithium, Joe Lowry, “Canada wants to be the Australia to North America.” This is because Australia produced more than 2.3 mt spodumene in 2022, standing as the pillar of China’s lithium battery value chain. Moreover, there has been a lack of production from Canada, even with Quebec global resource estimates of around 500Mt @ +1% Li₂O.

In addition to its Canada endeavours, LU7 has access to major lithium opportunities under Tier 1 mining jurisdictions in Australia.

Image Source: Company PPT

LU7 Advances Quebec Lithium Processing Hub Strategy

Lithium Universe is actively developing its Quebec Lithium Processing Hub (QLPH) to address the lithium conversion capacity cap in North America. The company is focused on:

1. Building a Multi-Purpose Spodumene Concentrator:

• LU7 secured a strategic property within the Bécancour Waterfront Industrial Park (BWIP) to house the concentrator.
• Engineering studies by Primero Group are progressing well, targeting a 1 Mtpa processing capacity with a final concentrate grade of around 5.5% Li2O.
• The finalised design incorporates a four-stage crushing process to achieve optimal particle size for further processing.

2. Establishing a Battery-Grade Lithium Carbonate Refinery:

• LU7 has secured an option to acquire a suitable property for the refinery within the BWIP.
• Hatch Ltd is conducting an engineering study for the refinery, aiming for a 16,000 tpa capacity with a feed grade of 5.5% Li₂O.
• The target product is battery-grade lithium carbonate with a purity of at least 99.5% and 99.9%.
• Additionally, the refinery will produce co-products like anhydrous sodium sulphate and alumina-silicate residue for sale in bulk markets.

To complement these efforts, LU7 has begun metallurgical testing on various spodumene sources using the flow sheet designed for the QLPH refinery. This testing program is crucial for ensuring the effectiveness of the lithium carbonate production process within the refinery's specific parameters.

The Company estimates that there is approximately 900GW of planned battery/cathode factory capacity planned in North America. The Company believes this equates to roughly 800,000t of planned LCE demand within North America alone.

The Company states that there are no large-scale operational refineries in North America only a planned conversion capacity of around 100,000t LCE by 2028.

Overall, Lithium Universe's progress on the QLPH demonstrates its commitment to addressing this overlooked conversion capacity deficit within the North American lithium supply chain and contributing to the clean energy transition.