The complex will have a nominal capacity of 32,000 tonnes per year (t/a) of lithium carbonate equivalent.
Lithium company Rock Tech has confirmed the economic and operational viability of constructing a lithium conversion facility in Red Rock, Ontario, Canada, following the completion of a scoping study.
The proposed facility, with a nameplate capacity of 32,000 tonnes per annum (t/y) lithium carbonate equivalent (LCE), will source spodumene concentrate locally, including from the company’s Georgia Lake project.
Highlights of the study include an after-tax internal rate of return of 22.2%, a net present value of C$2.3 billion at an 8% discount rate, and a capital expenditure estimate of C$1.6 billion.
Conversion operating costs, excluding raw materials, are estimated at C$6,200/t.
Rock Tech CEO Dirk Harbecke said the company’s strategy was to replicate its European success in North America. The company’s proven experience in advancing its fully-permitted German plant will be instrumental in accelerating the Ontario project, which is expected to benefit from significant cost savings by transferring up to 80% of the basic engineering of the German converter.
Jennifer Main, chief operating officer of the Ontario converter project, noted that the project is well positioned to become a lithium refining hub, with the goal of delivering critical materials to the market by the end of the decade.
Rock Tech’s study indicates a strong business case, with long-term spodumene concentrate prices expected at US$1,800/t and LCE sales projected at US$31,000/t over the project life of 25 years.
