Lithium Universe Secures Prime Location for Québec Refinery to Boost North American EV Battery Supply Chain
Lithium Universe has announced the acquisition of a key industrial site in the Bécancour Waterfront Industrial Hub (BWIP) for its innovative multi-purpose battery-grade lithium carbonate refinery. This strategic move is part of the company's Québec Lithium Processing Hub (QLPH) strategy, aiming to capitalize on the growing demand for electric vehicle (EV) batteries in North America.
The choice of BWIP for the 16,000tpa lithium carbonate plant was made after a thorough location option study conducted by Hatch, highlighting the site's advantageous proximity to major battery and EV manufacturers. Notably, the BWIP site is located near the General Motors/POSCO Cathode factory, the Ford/EcoProBM Cathode factory, and within 140km of Northvolt's EV battery facility.
With over 20 large-scale battery manufacturers on the East Coast of North America and a clear preference for spodumene as feedstock, Lithium Universe (ASX:LU7) believes Québec is poised to become a central player in the EV battery ecosystem on the continent.
Closing the Lithium Conversion Gap
The North American market is expected to experience a significant boom in battery manufacturing, with more than 20 major battery manufacturers planning to deploy an estimated 900GW of battery capacity by 2028. States such as Georgia, Kentucky, and Michigan are projected to lead in EV battery production, contributing significantly to the expected annual production of 13 million "all-electric" vehicles in the US within the next six years.
Despite this anticipated growth, there is a notable scarcity of independent lithium converters in North America, leading to a significant gap in lithium conversion and processing capabilities. Lithium Universe estimates that approximately 800,000t of LCE (Lithium Carbonate Equivalent) per annum will be required to meet the demand, assuming the planned battery manufacturing capacity of 900GWh by 2028.
Strategic Advantages of the Bécancour Site
The decision to develop a lithium carbonate refinery, rather than a lithium hydroxide refinery, aligns with the increasing use of Lithium Iron Phosphate (LFP) batteries. The strategic location of the BWIP site offers numerous logistical advantages, including proximity to road, rail, and port facilities, as well as access to Québec's low-cost hydroelectricity and a skilled workforce.
LU7 Chairman Iggy Tan highlighted the importance of the site's logistical advantages and the potential for expansion, underscoring Québec's attractive environmental standards and the region's burgeoning role in the battery-focused jurisdiction.
This significant step forward for Lithium Universe not only strengthens its position in the lithium processing sector but also contributes to the broader effort to enhance the North American EV battery supply chain, ensuring a more sustainable and efficient future for electric vehicles.
