Canada-based Li-Metal Corp., a developer of lithium metal anode and lithium metal production technologies, has completed its previously-announced concept study for a commercial North American lithium metal production facility with an annual capacity of up to 1,000 tonnes. commercial-scale plant. Li-Metal produces lithium metal directly from lithium carbonate as opposed to traditional processes that use lithium chloride.

Highlights of the study include:

• Competitive brownfield CAPEX: Upon reaching full capacity with an average production estimate of 1,000 tonnes per year , the total capital expenditures was estimated at US$109 million. The CAPEX estimates in this concept study aligned with Li-Metal expectations and encompasses both indirect costs (35% of the direct costs) and contingency (30% of direct and indirect costs). Owners’ costs and escalation were excluded from this estimate. The capital cost accuracy of this study was estimated to be between -25% and +50%.

• Favorable Operating Costs: The study noted that the expected conversion cost for converting carbonate to lithium metal, excluding raw material costs, would be up to US$31 per kg including leasing costs for a brownfield facility. This compares favorably to the expected conversion cost for traditional chloride to lithium metal processes of US$ 45-52 per kg excluding OPEX required to convert carbonate to chloride.

• Feedstock Requirement: The study also highlighted the commercial plant would require approximately 5,600 tonnes of lithium carbonate per year. Li-Metal is currently in discussions with several Inflation Reduction Act (IRA) compliant carbonate producers and battery OEMs to identify partners to commercially jointly scale the C2M technology.

The envisioned 1,000 tonne per year plant will leverage Li-Metal’s patented and sustainable carbonate-to-metal (C2M) lithium metal technology. The concept study focused on a compact plant design and validates Li-Metal’s assertion that the C2M technology holds promise for the development of a commercial lithium metal plant at a brownfield site. The study showed potential for attractive plant-level economics, in line with the company’s expectations. Additionally, the ability to leverage a brownfield site would enable Li-Metal to benefit from significant cost-efficiencies in addition to being able to utilize existing infrastructure and potentially an existing workforce.

The study noted that in addition to eliminating chlorine gas by-product, the conceptual plant’s GHG emission footprint would be well below the required reporting levels under the relevant regulatory framework in Canada and US. As outlined in the recommendations for the study, Li-Metal will continue to develop its technology, equipment design and engineering.

The concept study envisages completion of all piloting, scale-up, study, engineering, and construction activities in 48 months for a commercial-scale plant. Currently, about 3,000 tonnes per year of battery-grade lithium metal are produced globally, with more than 95% of that production concentrated in China, according to Benchmark Mineral Intelligence.

According to McKinsey, by 2030 the demand for lithium metal will increase to between 21,000 - 40,000 tonnes per year to support the production of next-generation batteries. Li-Metal is closely working with customers to understand their demand and accelerate the timeline if necessary.