US-based chemical manufacturing company Albemarle (NYSE:ALB) has appointed privately owned mining services company Hatch to build 2 additional processing trains to double production at its Kemerton lithium hydroxide plant in Western Australia.
The company reports the additional trains will be wholly owned and operated by Albemarle, and will increase Kemerton’s production by 50,000 tonnes per annum. Operating at full capacity, Kemerton will produce up to 100,000 tonnes per annum of lithium hydroxide which will support the manufacture of about 2.4 million electric vehicles annually.
Hatch reports it will provide engineering, procurement, and construction management (EPCM) services for the execution phase of the project, which builds upon the concept and definition phase work undertaken in 2022 and early 2023.
The MARBL JV is 85% owned by Albemarle, while the remaining 15% interest is held by Western Australia mining services company Mineral Resources (ASX:MIN).
The deal with Hatch comes as Albemarle seeks to takeover Australian lithium explorer Liontown Resources (ASX:LTR) with the company sending a third non-indicative offer to Liontown on 28 March 2023. The company has been keen to get ahold of Liontown’s project at Kathleen Valley in Western Australia, which will be one of the world’s largest lithium mines supplying 500,000 tonnes of 6% lithium oxide (Li2O) concentrate per year when it comes on stream in 2024.
“Australia is essential to the global supply chain for energy storage and an important part of our diverse portfolio”
Commenting on the additional processing trains, Albemarle Chairman and Chief Executive Officer (CEO) Kent Masters says: “Australia is essential to the global supply chain for energy storage and an important part of our diverse portfolio.
Our decision to expand was driven by our confidence in future demand and allows us to offer customers additional supply from Greenbushes, well known as one of the world’s best lithium mines.”
Albemarle reports this investment combined with the existing 2 trains at Kemerton owned by Albemarle’s MARBL joint venture (JV) represents the largest investment by any company in downstream processing of lithium in Australia and notes it will make the company the largest lithium producer in the country.
Hatch Director, Metals, Australia-Asia, and Project Sponsor, Claude D’Cruz says: “We’re thrilled to be working alongside Albemarle on the expansion of its Kemerton lithium hydroxide plant.
We recognise the significance of this project in cementing Albemarle and Australia as a key producer of lithium, a crucial part of a sustainable future.”
Albemarle President of Energy Storage, Eric Norris says this decision leverages Albemarle’s technology and capability to design, build and operate lithium conversion plants.
Additionally, Albemarle Country Manager, Beverley East says the company created a specialised manufacturing industry in the southwest of Western Australia which will continue to deliver local economic benefits including jobs, and business opportunities for decades.
“Albemarle is already a significant employer in the region with more than 480 operational staff currently and about 370 more employees needed to operate the expanded project by 2026″
“Albemarle is already a significant employer in the region with more than 480 operational staff currently and about 370 more employees needed to operate the expanded project by 2026. Our construction workforce for the expansion project is predicted to be about 1,000 workers, with our preference being to recruit locally for construction and operations as much as we can.”
The company also notes the Kemerton expansion is part of Albemarle’s larger presence in Western Australia, which includes various interests and stakes in spodumene resources at Greenbushes and Wodgina.
Albemarle is a US-based chemical manufacturing company developing lithium and bromine resources across the globe for use in mobility, energy, connectivity, and health applications.
Hatch is a privately owned mining services company that specialises engineering, project construction work, business consulting, and operational services to the mining, metallurgical, energy, and infrastructure sectors.
Images: iStock
