EV Metals Group plc (EVM) launched the Australian Lithium Alliance, a strategic initiative to partner with Australian companies to accelerate exploration, development, mining, processing and production of lithium minerals.
The strategic initiative will be implemented by Australian Lithium Alliance Pty Limited (ALA), a wholly owned subsidiary of EVM, through joint ventures and off-take agreements as an alternative to Chinese companies that currently dominate the purchase of spodumene concentrate from Australia to supply chemicals processing companies in China.
EVM is building a global battery chemicals and technology business with the development of the world’s first integrated Battery Chemicals Complex (BCC) at Yanbu Industrial City in the Kingdom of Saudi Arabia. It will produce high-purity chemicals containing lithium, nickel, cobalt, manganese and other metals required for high energy density cathode active materials used in rechargeable lithium-ion batteries for electric vehicles and renewable energy storage.
EVM is in a unique position with the development of two processing trains requiring initially 330,000 tpa of spodumene concentrate containing 6% lithium oxide (SC6) to produce 50,000 tpa of lithium hydroxide monohydrate (LHM) in the Lithium Chemicals Plant at the Battery Chemicals Complex in the Kingdom of Saudi Arabia. The BCC has been designed for expansion with a further two trains requiring a further 330,000 tpa of SC6 for the production a further 50,000 tpa of LHM.
EVM launched the formation of the Australian Lithium Alliance with the release of details of an agreement in the form of an Earn-in Joint Venture and Lithium Rights Deed (Agreement) between EVM, ALA, Zenith Minerals Ltd (ZNC) and Black Dragon Energy (Aus) Pty Limited (BDE), a wholly subsidiary of ZNC.
The agreement will accelerate the exploration for and, if successful, the development, mining, processing and production of lithium minerals from the strategically located Split Rocks and Waratah Well Tenements under the Zenith Lithium Joint Venture. EVM will also enter into a life-of-mine offtake agreement for all production of SC6 from all lithium minerals projects developed by the Zenith Lithium Joint Venture.
Under the agreement, lithium minerals include “lithium (in any and all forms) and all other metals including tantalum, caesium, all rare earth elements, nickel, cobalt, copper and scandium in the Tenements but specifically excludes gold, silver and other precious minerals however they may occur”.
The aim is for the Australian Lithium Alliance to build the Zenith Lithium Joint Venture into the largest producer of Lithium Minerals in the form of spodumene in Australia. The Agreement with ZNC is an exemplary working model. Australian Lithium Alliance will fund all expenditure for completion of a feasibility study for the development of a Lithium Minerals Project to earn an interest of 60% in the Zenith Lithium Joint Venture and all lithium minerals projects acquired by the Lithium Joint Venture.—Michael Naylor, Managing Director of EVM