LITHIUM CONVERTER


Rock Tech Lithium will construct its own chemical plants to become a fully integrated producer of battery-grade Lithium Hydroxide (LiOH) and strategic partner for the electric vehicle and battery storage industries in North America and Europe. These plants are usually referred to as “converters”, as they convert (refine) the Lithium Oxide (Li2O) in the hard rock spodumene deposits into lithium chemicals.

We are working on locations for the plants in Canada as well as in Europe/Germany, to be as closely as possible to the customer. As all Lithium Hydroxide (LiOH) converter capacity currently exists in China, our plants provide the opportunity for independent and stable supply chains to support the western world’s demand for Lithium Ion battery materials.

We have recently published a Preliminary Economic Assessment (PEA) study for the production of LiOH in the Great Lakes Region. Our plant will receive spodumene concentrate from our own hard rock mine in Georgia Lake/Ontario which will be converted to battery grade LiOH-a primary chemical for the manufacturing of lithium ion battery cathodes. Report without Annexure. For the full report, please visit our SEDAR profile.

 
Sustaining Capex
Average LoM Revenue/t
Average LoM Operating Cost/t (during LoM)
Average Annual Revenue
Average Annual Operating Cost
Average Annual EBITDA
LoM Revenue
LoM Operating Cost
LoM EBITDA
Pre-Tax NPV
Pre-Tax IRR
Post-Tax NPV
Post-Tax IRR
Initial capex
Unit
$US m
$US / t LiOH
$US / t LiOH
$US m/a
$US m/a
$US m/a
$US m
$US m
$US m
$US m
%
$US m
%
$US m
15,000 TPA Option
82
14,612
5,956
203
75
120
2,033
829
1,179
335
24%
270
22%
353
24,000 TPA Option
174
14,813
7,199
356
165
179
7,115
3,458
3,555
1,069
31%
875
28%
457

In November 2020 Rock Tech engaged Wave International to produce a Pre-Feasibility Study on a 24,000 tpa LiOH converter. Apart from the industry-standard processing route, the study will also carry out pilot testing of our proprietary Nitrate process for which we have filed a patent application with the European Patent Office. In case of successful pilot testwork, Rock Tech expects substantial cost savings due to lower energy consumption and higher by-product revenues.

The PEA also highlighted the significant value add potential of a scaled-up case with 24,000 tpa LiOH production. Rock Tech is currently assessing the technical feasibility of such a converter whereby Georgia Lake Mine feed is supplemented by third party spodumene feed and the converter is operating 20 years.