PERTH (miningweekly.com) – Lithium producer Pilbara Minerals has taken a step closer to develop downstream processing capabilities, exercising an option with Korean major Posco.
Pilbara will enter into an incorporated joint venture (JV) with Posco for the development of a 40 000 t/y lithium carbonate equivalent chemical conversion facility, in South Korea.
Pilbara would have up to a 30% participating interest in the downstream facility, which is expected to be the first large-scale chemical conversion plant in South Korea to deliver battery-ready lithium chemicals.
Pilbara MD and CEO Ken Brinsden said on Monday that since the fourth quarter of last year, Pilbara has been undertaking technical due diligence to assess the proposed chemical plant development, and work to date has delivered promising results.
“The significant investment by Posco into the PosLX technology has paid off and they have proven their ability to produce an industry leading, battery-ready lithium product through their innovative lithium purification process.”
Posco has developed its first commercial-scale operation producing up to 2 500 t/y of lithium chemicals.
“For Pilbara Minerals to have secured a strong and technically capable partner like Posco is no mean feat and gives us an exciting opportunity to partner with them to enter the battery grade and cathode material product supply market and become a fully vertically integrated global lithium raw materials company,” said Brinsden.
He noted that the rapid growth in lithium chemicals consumption in South Korea could not be underestimated, adding that the partnership with Posco positioned the company at the forefront of this market.
Prior to the Pilbara board making a final investment decision regarding its full participation in the JV, a number of outstanding conditions would need to be met on the proposed chemical conversion plant, financing, and the finalisation of the final binding JV and technology licensing terms.