TORONTO (miningweekly.com) - Talison Lithium on Wednesday said it has started an expansion at its Western Australian operations that, once complete, will lift the TSX-listed company’s production to the same level as the entire market for the battery ingredient in 2010.

The growth project, aimed at more than doubling output at the Greenbushes mine to 740 000 t/y of lithium concentrate, will cost between A$65-million and A$70-million, with commissioning pencilled in for the second quarter of 2012.

“After completion of the expansion, Talison's production capacity will be broadly equivalent to the size of the total global lithium market in 2010,” CEO Peter Oliver said.

“[The project] enables Talison to provide its customers with security of supply to meet the expected future growth in demand for lithium-ion batteries in the years ahead.”

The company said that it had final board approval for the expansion, and that site works will begin in April.

The project follows hot on the heels of a previous expansion at Greenbushes, which Talison completed in December. At that point, the company said it was considering further boosting output, in response to continued strong demand.

Lithium is used in the batteries of many devices, including iPads, electric cars, and electric bicycles.

“Global demand for lithium is expected to accelerate significantly in coming years driven by demand for lithium-ion batteries for use in mobile technology, energy grid stabilisation and electric vehicles,” Talison said.

On Monday, competitor Canada Lithium announced it was conducting a review of its resources at its Quebec project, which might show a “material reduction”, precipitating a 34% drop in the company’s share price on Tuesday.
 

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