Neometals delays Li hydroxide refinery plans

Australia-based lithium developer Neometals has delayed plans to set up a lithium hydroxide refinery at Kalgoorlie in Western Australia, citing higher-than-expected "capital intensity" and short- to medium-term "imbalances" in the lithium supply chain.

Feasibility plans for the refinery, which would produce 10,000 t/yr of lithium hydroxide, have been postponed. But the company will continue to advance engineering and approvals processes with an eye to longer-term options.

Neometals has received payment for the sale of its 13.8pc stake in the Mt Marion lithium mine and has also arranged binding life-of-mine access to 57,000 t/yr of lithium concentrate from the mine's owners Australia's Mineral Resources and China's Ganfeng Lithium.

The spodumene offtake option can be exercised annually, giving Neometals "the flexibility to adjust, optimise and align its downstream processing strategy and timing with more favourable lithium market and industry conditions," the company said.

Neometals is piloting mixed lithium-ion battery recycling in Canada, along with engineering and design studies, as part of a previously announced move into battery recycling. An investment decision on building a commercial plant is expected by the end of this year.

A feasibility study on the production of zeolite as a co-product with lithium hydroxide is expected to be completed in December, with samples to be produced for delivery to potential customers. The company is also considering a standalone processing operation or integration into the proposed lithium refinery.

An updated definitive feasibility study at the Barrambie project, which has one of the world's largest titanium and vanadium resources, is due to be completed in April and will form the basis for offtake and financing negotiations. A final investment decision is anticipated later this year.