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Released May 16, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As automakers increase their production of electric vehicles (EVs), demand for lithium, a main component of EV batteries, is increasing, and lithium producers and automakers are stepping up their game to make more of the metal available for use while negotiating the world of international trade and politics. Among the events that have occurred in the lithium sector so far this month are Albemarle Corporation's (NYSE:ALB) (Charlotte, North Carolina) announcement that it would double the capacity of its lithium-processing operations in Western Australia, Lithium Americas Corporation's (NYSE:LAC) (Vancouver, British Columbia) pending split of its North America and South America operations, and EV maker Tesla Incorporated's (NASDAQ:TSLA) (Austin, Texas) breaking ground on a lithium-processing center in Texas.
Albemarle
Earlier this month, lithium producer Albemarle agreed to increase the capacity of its lithium processing operations in Western Australia to 100,000 tonnes by 2026, including the addition of two more processing trains at the facility. The plant is in the process of ramping up production of its three recently completed trains, which will have a combined processing capacity of 60,000 tonnes at full capacity. The expansion will add two 20,000-tonne-per-year trains at an approximate cost of US$1.5 billion, bringing the plant's total capacity to 100,000 tonnes per year. Construction is expected to begin immediately. The facility will source the spodumene ore concentrate from the Greenbushes mine, also in Western Australia.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Database can click here for the reports on the processing plant projects and click here for the profile of the Greenbushes mine.
Lithium Americas
Meanwhile, Lithium Americas' Executive Vice Chair John Kanellitsas shed more light on the company's splitting to separate its North American and South America operations. The move really comes down to one of receiving funding from both the U.S. public and corporate sectors for its Thacker Pass project in Nevada.
Lithium Americas' Thacker Pass project received attention in late January when General Motors Company (NYSE:GM) (GM) (Detroit, Michigan) agreed to purchase $650 million worth of Lithium Americas' shares and all of the mine's 40,000 tonnes per year of lithium output after Phase I construction is completed.
However, GM's funding came with some strings attached. The $650 million in share purchases are to come in two equal parts. The first tranche was contingent on Lithium Americas' prevailing in a federal courtroom in a legal suit filed by environmental groups, Native American groups and other landowners regarding the mine's effect on air, groundwater and sacred tribal sites. In late April, Judge Miranda Du ruled in favor of Lithium Americas going ahead with the mine, paving the way for the first half of GM's investment. The second tranche is contingent upon the separation of Lithium Americas' North American and South American operations.
But the split involves more than just funding from GM. Lithium Americas also has applied for funding from the U.S. Department of Energy, which has allocated hundreds of millions of dollars toward battery-metals projects. The problem? Lithium Americas has another shareholder in the form of China's Ganfeng Lithium Group (Xinyu), which partnered with Lithium Americas in 2017 to help advance a brine-extraction and lithium-processing project in Argentina. The facility initially will produce 40,000 tonnes per year of lithium carbonate over a 40-year mine life and is nearing completion. An expansion project is in the early planning stages, which could increase production to 60,000 tonnes per year. Subscribers can click here for related project reports.
As the U.S. moves to distance itself from reliance on China for battery metals, the dilemma of a company's having dual funding from both nations is apparent. At a recent metals and mining conference in Palm Desert, California, Kanellitsas discussed the situation. "What makes it problematic, optics wise... is when the beneficial owners of those Department of Energy funds are Chinese shareholders. You can only imagine a press release saying here, 'Lithium Americas and Ganfeng announce a new joint venture'--it just would not fly at all, especially given what we're trying to accomplish here in North America," he said.
Construction on Lithium Americas' Thacker Pass operation in Nevada began shortly after Judge Du's favorable courtroom decision. Phase I involves developing a 9,000-ton-per-day open pit mining operation that will produce 40,000 tons per year of battery-grade lithium carbonate from 3.3 million tons of mined ore for the first three years of the mine's life. After three years, Phase II construction would begin, aimed at doubling production capacity for the estimated 36 years of remaining mine life. In addition to the mine, the project includes construction of sulfuric acid plants, processing plants and cogeneration plants. Subscribers can click here for related reports.
Tesla
Also this month, Tesla held a groundbreaking ceremony for a lithium hydroxide refining plant in Robstown, Texas, near Corpus Christi. According to news media, the facility will be the largest lithium refinery in North America. The plant is expected to be completed next year and take about a year to reach full production. The move will make Tesla the only major automaker in North America to refine its own lithium. At the ceremony, Musk said the facility will produce enough lithium by 2025 to support the manufacture of 1 million vehicles per year. Subscribers can click here for more details.
Subscribers to Industrial Info's GMI Metals & Minerals Database can click here to see reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Albemarle
Earlier this month, lithium producer Albemarle agreed to increase the capacity of its lithium processing operations in Western Australia to 100,000 tonnes by 2026, including the addition of two more processing trains at the facility. The plant is in the process of ramping up production of its three recently completed trains, which will have a combined processing capacity of 60,000 tonnes at full capacity. The expansion will add two 20,000-tonne-per-year trains at an approximate cost of US$1.5 billion, bringing the plant's total capacity to 100,000 tonnes per year. Construction is expected to begin immediately. The facility will source the spodumene ore concentrate from the Greenbushes mine, also in Western Australia.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Database can click here for the reports on the processing plant projects and click here for the profile of the Greenbushes mine.
Lithium Americas
Meanwhile, Lithium Americas' Executive Vice Chair John Kanellitsas shed more light on the company's splitting to separate its North American and South America operations. The move really comes down to one of receiving funding from both the U.S. public and corporate sectors for its Thacker Pass project in Nevada.
Lithium Americas' Thacker Pass project received attention in late January when General Motors Company (NYSE:GM) (GM) (Detroit, Michigan) agreed to purchase $650 million worth of Lithium Americas' shares and all of the mine's 40,000 tonnes per year of lithium output after Phase I construction is completed.
However, GM's funding came with some strings attached. The $650 million in share purchases are to come in two equal parts. The first tranche was contingent on Lithium Americas' prevailing in a federal courtroom in a legal suit filed by environmental groups, Native American groups and other landowners regarding the mine's effect on air, groundwater and sacred tribal sites. In late April, Judge Miranda Du ruled in favor of Lithium Americas going ahead with the mine, paving the way for the first half of GM's investment. The second tranche is contingent upon the separation of Lithium Americas' North American and South American operations.
But the split involves more than just funding from GM. Lithium Americas also has applied for funding from the U.S. Department of Energy, which has allocated hundreds of millions of dollars toward battery-metals projects. The problem? Lithium Americas has another shareholder in the form of China's Ganfeng Lithium Group (Xinyu), which partnered with Lithium Americas in 2017 to help advance a brine-extraction and lithium-processing project in Argentina. The facility initially will produce 40,000 tonnes per year of lithium carbonate over a 40-year mine life and is nearing completion. An expansion project is in the early planning stages, which could increase production to 60,000 tonnes per year. Subscribers can click here for related project reports.
As the U.S. moves to distance itself from reliance on China for battery metals, the dilemma of a company's having dual funding from both nations is apparent. At a recent metals and mining conference in Palm Desert, California, Kanellitsas discussed the situation. "What makes it problematic, optics wise... is when the beneficial owners of those Department of Energy funds are Chinese shareholders. You can only imagine a press release saying here, 'Lithium Americas and Ganfeng announce a new joint venture'--it just would not fly at all, especially given what we're trying to accomplish here in North America," he said.
Construction on Lithium Americas' Thacker Pass operation in Nevada began shortly after Judge Du's favorable courtroom decision. Phase I involves developing a 9,000-ton-per-day open pit mining operation that will produce 40,000 tons per year of battery-grade lithium carbonate from 3.3 million tons of mined ore for the first three years of the mine's life. After three years, Phase II construction would begin, aimed at doubling production capacity for the estimated 36 years of remaining mine life. In addition to the mine, the project includes construction of sulfuric acid plants, processing plants and cogeneration plants. Subscribers can click here for related reports.
Tesla
Also this month, Tesla held a groundbreaking ceremony for a lithium hydroxide refining plant in Robstown, Texas, near Corpus Christi. According to news media, the facility will be the largest lithium refinery in North America. The plant is expected to be completed next year and take about a year to reach full production. The move will make Tesla the only major automaker in North America to refine its own lithium. At the ceremony, Musk said the facility will produce enough lithium by 2025 to support the manufacture of 1 million vehicles per year. Subscribers can click here for more details.
Subscribers to Industrial Info's GMI Metals & Minerals Database can click here to see reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
