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Highlights
- Pilbara Minerals and Calix have received a grant of AU$20 million from the Australian Government
- The grant will be used for the development of the mid-stream project, which is a part of proposed joint venture between the parties
- Pilbara Minerals and calix expect to close joint venture deal by early 3QFY22
Shares of Australian lithium company, Pilbara Minerals Limited (ASX:PLS) rose nearly 5% on Tuesday after the company announced that the company along with its project partner Calix Limited (ASX:CXL) has received a grant of AU$20 million from the Australian Government has awarded a grant of AU$20 million under the Modern Manufacturing Initiative (MMI). Calix Limited is a technology development company.
Backed by the price-sensitive news, the shares of Pilbara Minerals were spotted trading 4.23% higher at AU$2.71 per share at 1:40 PM AEST. The shares of Calix Limited were up by 4.96% to AU$6.98 apiece.
About the AU$20M grant
Image source: © Vladwel | Megapixl.com
Through ASX-announcement, the lithium producer shared that it has received an AU$20M grant under the Modern Manufacturing Initiative (MMI) – manufacturing Translation Stream by the Australian government. The grant would be employed as part of the joint venture to be signed between Pilbara Minerals and Calix.
According to the media release, the parties would enter into a joint venture to develop the mid-stream project. The mid-stream project is a proposed demonstration plant at the Pilgangoora project.
The parties would support the commission, construction, procurement and designing of the mid-stream project. The aim would be to produce lithium salts for international distribution through an innovative midstream ‘value added’ refining process.
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Why is MMI grant a significant step for Pilbara and Calix?
The ASX-listed mineral company said that the MMI grant is a significant step toward the mid-stream project’s progression. The company has cited the following benefits:
- The downstream value addition would increase across the Australian economy.
- Achieving sustainability benefits in the lithium industry.
- Through enhanced lithium recovery, the parties would be able to maximise hard-rock lithium resources in Australia.
What is the objective of the mid-stream project?
The goal of the mid-stream project is to provide a ‘superior value-added lithium raw material’ that surpasses the key metrics of quality, product cost, waste reduction and carbon energy reduction.
Management commentary
Ken Brinsden, managing director and CEO of Pilbara Minerals, commented on the development that,
Phil Hodgson, managing director at Calix, said,
Road ahead!
Pilbara Minerals and Calix aim to close the joint venture agreement by the beginning of the third quarter of 2022. The companies are expected to decide the final investment decision by late 2022 or early 2023.
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