Neometals Ltd has released the results of an Engineering Cost Study (ECS) for a lithium chloride brine conversion operation employing Reed Advanced Materials Pty Ltd’s (RAM) unique ELi™ electrolysis technology.
The ECS is based on a plant capable of producing 25,000 tpa of battery-grade lithium hydroxide monohydrate (LHM). ELi™ employs traditional purification methods and chlor-alkali electrolysis cells.
The ECS was co-funded under a binding Co-operation Agreement with Bondalti Chemicals S.A., Portugal’s largest chemical producer. The parties will co-fund pilot trial and assessment studies to propose forming a 50:50 incorporated joint venture (JVCo). JVCo intends to build and manage a 25,000 tpa lithium refinery at Bondalti’s vast chlor-alkali plants in Estarreja, Portugal (Estarreja Lithium Refinery or ELR). Neometals anticipates that the plant will be commissioned and operational in the first quarter of 2027.
“Successful completion of the ECS has provided additional confidence in the operating and capital costs of the proposed Estarreja Lithium Refinery. The combination of Bondalti’s operating experience with RAM’s innovative Eli™ process for lithium brine concentrates can deliver a much needed domestic supply of lithium hydroxide in the EU. Furthermore, we are excited about the prospect of marketing a technology that can deliver a potential step-change in operating cost to developers of lithium brine sources. Lithium is the soft underbelly of the energy transition story, it is un-substitutable in EV batteries and the looming supply deficits appear permanent without innovation and government intervention. The US IRA and EU CRM Acts are evidence of the need to address this existential threat to car making in the West,” Neometals Managing Director Chris Reed said.
Primero Group assisted in the completion of the ECS. The ECS was performed with a 15% accuracy level to the AACE* Class 3 standard and was subjected to internal and external reviews.
Neometals is commercialising ELi™, which uses electrolysis to create lithium hydroxide from lithium chloride solutions. In 2016, a feasibility study found that the technology had the potential to dramatically lower the operational costs and carbon footprint associated with the consumption and transportation of carbon-intensive chemicals used in traditional lithium refining processes. The ECS results demonstrate the possibility of extraordinarily low operational costs and competitive capital intensity. Despite significant industry cost increases, the operating cost is similar to the 2016 Historical FS, and the operating cost advantage over the conventional method is maintained. The ECS verifies the economic benefits of ELi™, and Neometals anticipates the lifecycle evaluation to corroborate the process’s low carbon footprint.
