Lithium Universe announced that the Bécancour lithium carbonate refinery in Canada will require a total capital expenditure (capex) of $494m, based on the findings of a preliminary feasibility study (PFS).
The total costs include direct costs of $304m, project indirects and engineering, procurement and construction management (EPCM) of $98m, owner’s cost and land of $24m, and contingency of $68m.
Lithium Universe aims to set up a reliable and low-risk lithium conversion refinery with an annual capacity of up to 18,270 tonnes. The company expects to leverage expertise from the Jiangsu processing model.
The PFS projects a post-tax net present value (NPV) of $501m for the Canadian lithium carbonate refinery project. It also estimates an after-tax internal rate of return (IRR) of 23.5%, with a steady state payback period of 3.5 years.
In addition, the study reveals that the Bécancour lithium carbonate refinery will generate an estimated revenue of nearly $383m and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of about $147m.
Lithium Universe chairman Iggy Tan said: “The successful completion of our Preliminary Feasibility Study is a significant milestone for the company, especially given that we only launched in August of last year.
“Early on, we recognised that bridging the lithium conversion gap in North America, leveraging our accumulated lithium expertise and the proven technology from Jiangsu, was a clear and strategic path forward.”
“Our counter-cyclical strategy is centred on advancing projects during market downturns, allowing us to strategically position ourselves for growth as the market rebounds. We are dedicated to funding and constructing a proven, low-risk lithium conversion refinery in Québec, marking the first step toward establishing Québec as the lithium conversion hub for the Transatlantic region.”
Located in Bécancour, Québec, the lithium refinery is expected to play a significant role in reducing North America’s dependence on Chinese lithium converters. It is also anticipated to contribute to a more secure and sustainable supply chain for electric vehicles (EVs) and energy storage systems.
Lithium Universe is progressing towards completing a definitive feasibility study (DFS) for the Bécancour lithium carbonate refinery and securing offtake partnerships with interested original equipment manufacturers (OEMs).
