Australian lithium producer Mineral Resources intends converting all of its spodumene concentrate production to downstream lithium hydroxide within four years.
This will come from its joint venture interests in the Mount Marion and Wodgina lithium mines in Western Australia, the company said.
The firm's 50pc interest in Mount Marion is expected to translate into 42,000 t/yr of lithium hydroxide with its interest in the Wodgina mine being converted to 53,000 t/yr of lithium hydroxide. Wodgina is a joint venture with US-based Albemarle that has 60pc but the ownership structure is being renegotiated to 50:50.
Mineral Resources is expecting to have production capacity of around 115,000 t/yr of lithium hydroxide by 2026, with the addition of its 40pc interest in the Kemerton lithium hydroxide plant southwest of Perth adding 20,000 t/yr.
Spodumene production at Wodgina is being increased to 750,000 t/yr in three stages with consideration being given to a fourth stage to further increase output. All of Mineral Resources' attributable output from Wodgina will be converted to lithium hydroxide through buying or building conversion plants. Surplus spodumene during the ramp-up of lithium hydroxide production or conversion will be sold on the spot market, the firm said.
Mount Marion, jointly owned by Mineral Resources and China's Jiangxi Ganfeng, last month announced plans to increase its output to 900,000 t/yr of mixed-grade lithium concentrate from around 475,000t/yr of mainly high-grade concentrate. Mineral Resources has a third-party treatment agreement with Ganfeng to convert its share of output into lithium hydroxide in China.
