Lithium Universe (ASX: LU7) secures key land holding for Québec lithium refinery - Kalkine Media

Highlights

• Lithium Universe has reached an option agreement with SPIPB for the acquisition of a commercial property within the Bécancour Waterfront Industrial Park (BWIP).
• The purchase price is expected to be ~CAD 12.6 million.
• The BWIP property is slated to host LU7’s proposed 16,000 tpa battery-grade lithium carbonate refinery at its Québec Hub.
• The company views BWIP as a highly reliable centre for low-cost hydroelectric power in Québec.

Lithium Universe Limited (ASX: LU7) has signed an option agreement with the Société du Parc Industriel et Portuaire de Bécancour (SPIPB) for the acquisition of a commercial property within the Bécancour Waterfront Industrial Park (BWIP).

The acquisition is subject to regulatory and shareholder approvals. While the final acquisition price is pending a survey, it is expected to be around CAD 12.6 million. The two parties have agreed for an option term of 36 months from the date of signing of the option agreement. Under the terms of the agreement, LU7 will pay the first option fee of CAD 63,135 per month for 30 months from July 2024. The company has ensured that no capital raising would be necessary to complete this acquisition.

Previously, LU7 had announced that Hatch Ltd would conduct an engineering study for the design of a multi-purpose battery-grade lithium carbonate refinery at its Québec Lithium Processing Hub (QLPH). The BWIP is expected to serve as the preferred site for this proposed 16,000 tpa refinery.

The site has the capability for three 16,000 tpa lithium carbonate refineries, according to the company.  

What makes the BWIP property a strategic fit for LU7’s refinery? 

Spanning over 276,423m², BWIP represents Lot 22 of the Parc industriel et portuaire de Bécancour, Bécancour in Québec, Canada.

The property is located near a major highway and is well-connected to the extensive North American highway network. Also, the site has access to daily service by the Canadian National Railway (CN), which facilitates cross-continental transportation, connecting important ports on the Atlantic and Pacific coasts. The nearby Port of Bécancour offers another advantage to the site, ensuring seamless access to international spodumene supply, while the development of Canadian internal spodumene supply completes.

The company considers BWIP to be a highly reliable centre for low-cost hydroelectric power in Québec due to its location at the intersection of hydro-electrical distribution networks. It has easy access to potable and industrial water, along with advanced industrial waste facilities.

Moreover, the Bécancour Facility consists of a co-generation plant with a production of 550 MW, a 2400 kPa high-pressure line as well as an underground distribution network.

The site is located within 1km of General Motors/POSCO Cathode factory and Ford/EcoPro BM Cathode factory and 140km from Northvolt’s EV battery facility at Saint-Basile-le-Grand.

The development is in line with the company’s strategy to address the lithium conversion capacity gap in the North American market.