Pilbara Minerals Limited and Ganfeng Lithium Group Co have entered into a binding term sheet to conduct a joint feasibility study for a potential downstream conversion facility.
The feasibility study aims to assess the viability of establishing a conversion plant capable of producing approximately 32,000 tonnes of lithium carbonate equivalent of lithium chemicals annually.
Key considerations in the feasibility study include the selection of an optimal location, examination of fiscal incentives, development of a flowsheet, evaluation of sustainability aspects, and analysis of economic factors related to the potential lithium chemicals plant. Additionally, the study will include a qualitative assessment of other factors such as Environmental, Social, and Governance (ESG) criteria, permitting timeline, and supply chain logistics.
Dale Henderson, Managing Director and Chief Executive Officer of Pilbara Minerals, expressed enthusiasm about partnering with Ganfeng for this initiative, emphasizing the strategic objective of enhancing value through supply chain integration.
The completion of the feasibility study is anticipated by the first quarter of March 2025. Upon its conclusion, Pilbara Minerals and Ganfeng will have the option to proceed with a final investment decision for a jointly owned lithium chemical facility under a 50:50 joint venture arrangement.
Wang Xiaoshen, President and Vice Chairman of Ganfeng, expressed satisfaction in expanding their relationship with Pilbara Minerals and highlighted the significance of the feasibility study in pursuing growth opportunities. He underscored their joint effort to develop a globally competitive lithium chemicals joint venture to cater to leading customers in the lithium-ion supply chain.
