Pilbara Minerals and Ganfeng Lithium Explore Joint Venture for Lithium Conversion Facility
Australia's Pilbara Minerals, in partnership with Chinese firm Ganfeng Lithium, has announced plans to conduct a feasibility study on the potential construction of a lithium conversion facility, capable of producing 32,000 metric tons of lithium carbonate or hydroxide annually. The study's completion is targeted for the March quarter of 2025, with the location of the plant yet to be determined. The collaboration aims to enhance geographical diversification within the battery chemicals supply chain, with Australia being considered among several potential sites.
Pilbara Minerals, Australia's largest independent lithium miner, is already engaged in several strategic partnerships, including a joint venture with South Korea's POSCO for a lithium hydroxide plant and a collaboration with Calix Limited for a midstream lithium chemicals demonstration plant in Western Australia.
The proposed facility is expected to not only bolster lithium production but also address environmental concerns by reducing transportation volumes and the carbon footprint associated with lithium supply. Preliminary discussions with multiple countries have showcased a keen interest in hosting the lithium chemical production facility, promising economic, tax, and funding incentives, as well as support for land acquisition, permitting, and approvals.
If the joint venture materializes, Pilbara Minerals and Ganfeng Lithium plan to equally share ownership. However, Ganfeng Lithium is open to reducing its stake to capitalize on the US Inflation Reduction Act's subsidy scheme, which favors projects with US sourcing requirements.
Amidst these developments, Pilbara Minerals is also considering expanding its spodumene production capacity beyond the current target of 1 million tonnes per year, with a decision expected in the June quarter. The company has pledged to supply 300,000 tonnes of spodumene annually for the project, should it proceed, underscoring its commitment to meeting the growing global demand for lithium, a critical component in the electric vehicle battery market.
