Avalon Advanced Materials has commenced a Preliminary Economic Assessment (PEA) for a new lithium hydroxide conversion facility, which will be conducted by DRA Americas Inc., a wholly owned subsidiary of DRA Global. This facility, to be managed under Avalon’s subsidiary Lake Superior Lithium Inc., aims to process high-grade lithium concentrates from various sources using Metso’s environmentally friendly lithium conversion technology.
The planned facility, located at a 383-acre site in Thunder Bay, Ontario, benefits from existing infrastructure crucial for large-scale operations, including access to significant electrical power, natural gas, water, sewer services, rail connections, and a nearby open water port. This site was acquired by Avalon in June 2023 and is positioned to meet the growing demand for lithium products necessary for battery production in North America.
The Metso technology to be utilized in the facility avoids the use of hazardous reagents in the lithium conversion process, producing a non-hazardous sand and limestone byproduct that can be used in construction materials. This technology is currently under construction in other locations globally, with operations expected to commence in 2025.
The PEA will explore the viability of producing up to 30,000 tonnes per year of lithium hydroxide, with the facility designed to operate for more than 20 years. Additionally, the facility will have the capability to produce lithium carbonate, catering to varying demands within the battery manufacturing sector.
Scott Monteith, CEO of Avalon, expressed optimism about the project, highlighting the strategic response to the anticipated growth in battery manufacturing and the increasing adoption of electric vehicles. This facility is poised to strengthen North American supply chains by producing high-quality lithium compounds locally.
DRA Global, tasked with leading the PEA, brings extensive experience in project delivery and operations management in the mining and minerals sectors. This initiative represents a significant step in Avalon’s strategy to vertically integrate the Ontario lithium supply chain, linking its northern lithium resources with the burgeoning EV battery production in southern regions. Avalon continues to advance its other mineral projects, including the development of its Nechalacho rare earths project, which supports critical mineral supply for advanced technologies across various industries. 
