One in all northwestern Ontario’s main lithium exploration gamers delivered an replace on how its idea for a lithium refinery in Thunder Bay is shaping up.
Avalon Superior Supplies posted a preliminary financial evaluation (PEA), Sept. 3, on a lithium hydroxide processing facility undertaking within the metropolis’s north finish.
In forecasting the beginning manufacturing in late 2028, the Toronto firm mentioned its proposed $4.1-billion plant would have the design capability to supply 30,000 tonnes of lithium hydroxide, a cloth used predominately within the manufacturing of electrical automobile automobile batteries, its supposed buyer base.
The plant would deal with spodumene focus that arrives from a mine and converts it right into a lithium hydroxide monohydrate product.
The fee to construct the refinery is available in at $1.3 billion.
To finance this, Avalon mentioned it is persevering with discussions with the Canadian and U.S. governments and with “conventional debt and equity groups.”
Timeline-wise, Avalon expects to begin manufacturing of lithium hydroxide in Thunder Bay by the fourth quarter of 2028 and is relying on the Ontario authorities to assist make it occur by expediting the allowing approvals course of. The corporate mentioned it will want to attract water from Lake Superior.
Avalon is selling the ability as a regional hub processing plant, dealing with feed from its personal proposed mine at Separation Rapids, north of Kenora, and from different lithium mines in northwestern Ontario which may enter manufacturing within the years to come back.
A yr in the past, Avalon introduced aboard a expertise companion in Metso Corp. of Finland to deploy its progressive and environmentally pleasant conversion course of. Avalon mentioned within the information launch that this course of is presently within the check section.
General, Avalon mentioned the PEA makes a compelling financial and monetary case to maneuver to the following stage of analysis by diving extra into the small print by beginning a feasibility examine.
The examine relies on a spodumene focus worth of $1,360 per tonne over the estimated 30-year lifetime of the undertaking.
“These results reaffirm our view of the project’s robustness and substantial economic potential for the company, province and the country,” mentioned Avalon CEO Scott Monteith in a press release.
“The project is poised to provide high-quality, battery-grade lithium hydroxide to supply Canada’s projected demand from the rapidly growing EV industry.”
The refinery can be located on the waterfront web site of a former pulp and paper mill as soon as owned by Smurfit-Stone, on Strathcona Avenue within the metropolis’s north finish. Avalon acquired the property final yr.
There, the corporate has 374 acres the place it has entry to the Trans-Canada Freeway, energy connections, a CN Rail connection, and port entry.
Rail would be the major means to ship spodumene focus from its mine and others within the area to the location, in addition to ship reagents utilized in processing.
The completed lithium hydroxide materials will exit by truck and rail to battery manufacturing crops in southern Ontario and elsewhere, Avalon mentioned.
Apart from beginning the feasibility examine, the plan forward is to begin area work for the environmental baseline research and early engineering work, start web site geotechnical exercise, work with Metso on the plant design, safe clients by means of offtake agreements, and maintain the conversations going with First Nation teams, communities, post-secondary establishments and with authorities.
