Lithium Universe (ASX: LU7) says engineering study progressing swiftly

Highlights

• Lithium Universe has reported ‘excellent progress’ in the engineering study on its QLPH lithium carbonate refinery.
• Hatch Ltd has completed a block flow diagram as well as process flow diagrams for the refinery.
• Based on the observations of the location study, LU7 chose to concentrate on the Bécancour Industrial Park situated between Québec City and Montreal.

Lithium Universe Limited (ASX: LU7) is steering ahead with ‘excellent progress’ of the engineering study on its Québec Lithium Processing Hub (QLPH) multi-purpose battery-grade lithium carbonate refinery.

Lauding the progress made by Hatch Ltd on the study, LU7 Chairman Iggy Tan, said “The progress of the engineering study for the QLPH Lithium Refinery by Hatch has been excellent, setting the stage for the Definitive Feasibility Study (DFS). Considering our listing in early August this year, the pace and quality of work demonstrated by Hatch, guided by the Company's Lithium Dream Team, has been pleasing”.

What has been done so far?

As part of the engineering study, Hatch Ltd has completed a block flow diagram (BFD) as well as process flow diagrams (PFD). Also, the engineering firm has submitted a mass balance and process design criteria (PDC), including mass flows, splits, and anticipated tonnages related to important equipment.

A location study for the optimal site selection for LU7’s proposed battery-grade lithium carbonate refinery has also been completed by Hatch. The study covered an evaluation of multiple potential locations, with over 20 municipalities contacted, and relied on recent site location benchmarks from both 2021 and 2023.

According to the observations of the location study, LU7 chose to concentrate on the Bécancour Industrial Park situated between Québec City and Montreal.

Lithium Universe has begun discussions with the Société du parc industriel et portuaire de Bécancour (SPIPB) about the Bécancour Industrial Park.

An insight into the refinery

Rated at 16,000 tpa, the refinery is a crucial part of the company’s QLPH strategy. The assumed feed grade of spodumene is about 5.5% Li₂O. The final lithium carbonate product should be minimum or equal to 99.5% and 99.9% grade. Target plant availability is 84% and target overall recovery rate for lithium is 85%.

The company plans to sell anhydrous sodium sulphate as a by-product, as it has applications in the textile industry, while the alumina silicate residue obtained from the leached spodumene would be sold to the cement industry.

The design of the plant holds resemblance with that of the Jiangsu Lithium Carbonate Plant. However, LU7 believes it to be stronger and better equipped to process different types of spodumene concentrate from Canada and around the world.

Process Flow Diagram, QLPH Lithium Refinery

Image source: company update

A draft overall site layout has been developed by Lithium Universe to remain upright against Canadian climate conditions. The draft also defines roads that would be essential to ensure smooth movement of raw materials and shipment of products and co-products.

LU7 shares traded at AU$0.033 apiece at the time of writing on 19 December 2023.