PERTH (miningweekly.com) – Lithium miner Pilbara Minerals and its joint venture (JV) partner Calix have given a A$20-million grant from the Australian government under the Modern Manufacturing Initiative (MMI) to help fund the Mid-Stream project.

Pilbara Minerals and Calix in May this year inked a memorandum of understanding over the Mid-Stream project, which would see the development of a demonstration-scale chemicals facility at the Pilgangoora project to produce lithium salts from fines flotation spodumene concentrate produced at the Pilgangoora project.

A recently completed scoping study into the Mid-Stream project provided preliminary support for the construction of this facility. The study, undertaken by ASX-listed Lycopodium Minerals, confirmed the technical viability of the Mid-Stream project to deploy a novel calcination technology and integrated chemical concentration process at the Pilgangoora operation to produce a new end-product, with the preferred product at this stage of study being lithium phosphate salt.

Pilbara Minerals told shareholders on Tuesday that the MMI grant represented a significant step forward in the progression of the Mid-Stream project.

“Pilbara Minerals is very pleased to be able to access the Australian government’s MMI grant funding, representing key backing for technology that we believe represents a giant leap forward for the hard-rock lithium raw materials supply chain,” said MD and CEO Ken Brinsden.

“The Mid-Stream project is expected to facilitate waste minimisation in key end-use markets, which decarbonises the hard-rock lithium supply chain and creates competitive “value-added” products that can serve global markets directly. We are pleased to be partnered with Calix and their fantastic team, to build on the technology and ultimately market it around the world.”

Calix MD Phil Hodgson said the company was grateful for the A$20-million grant to assist in its lithium salt demonstration project with Pilbara Minerals.

“This world-first project aims to develop a low carbon process for lithium salt production into a rapidly growing market that is increasingly demanding more sustainable practices. The Calix and Pilbara Minerals teams are working very well together on this joint development and we look forward to progressing this important technology.”

A formal JV is targeted for early in the third quarter of this year, and a final investment decision on the project is expected in late 2022 or early 2023.