Battery minerals developer Lithium Energy (ASX:LEL) has executed a binding framework agreement with Xi’an Lanshen New Material Technology to construct a demonstration plant at the Solaroz Lithium Brine Plant in Argentina.
The company reports the demonstration plant will be capable of producing up to 3,000 tonnes per annum of battery-grade lithium carbonate. The plant will include Lanshen’s proprietary sorbent-based direct lithium extraction (DLE) technology, which has already been proven on industrial and commercial scales.
Subject to the receipt of all environmental and other permits, the plant is planned to be built at the discrete stand-alone Mario Angel concession, located to the southwest of the main block of Solaroz concessions, with commissioning targeted for the second half of 2024.
Drilling at Mario Angel to date has encountered cumulative intersections of up to about 235m of lithium brine mineralisation across the upper and lower aquifers, with an average grade of 446 milligrams per litre (mg/l) of lithium in the upper aquifer and 501mg/l lithium in the lower aquifer.
Lithium Energy reports Mario Angel was selected as it is a relatively small, discrete stand-alone concession ideally suited for DLE test purposes. The testing and plant operation at Mario Angel will also not impact the development of the broader concession holding at Solaroz.
In this regard, the company is currently completing a Scoping Study, with Hatch to evaluate the use of both traditional pond evaporation and DLE technology for the broader Solaroz concession areas.
Under today’s agreement, Lanshen will supply, build, and initially operate the plant at its own cost, with Lithium Energy responsible for securing all necessary approvals and permits and establishing the necessary supporting site infrastructure.
Once the plant is completed, if it passes pre-agreed acceptance criteria, then Lithium Energy will buy the plant for either cash or a percentage of interest in the lithium rights associated with the Mario Angel concession.
The value of the plant, combined with detailed plant specifications and technical, engineering, and operating parameters, will be outlined in a more detailed agreement to be executed before September 2023.
If the plant does not meet the agreed acceptance criteria, then Lanshen may be required to remove the plant at its own costs. Both parties will now immediately begin to work together to complete the plant by November 2024, with initial activities focussing on the plant design and engineering and necessary approvals and permits.
Commenting on the agreement, Lithium Energy Executive Chairman William Johnson says: “This partnership with one of the world’s leading providers of DLE technology is a tremendously exciting initiative undertaken by the company. Whilst the location and size of the Solaroz Project as a whole are considered highly favourable for traditional pond evaporation, sorbent-based DLE technology offers a number of potential significant commercial and environmental benefits.
“The try before we buy commercial arrangements agreed under the framework agreement … are highly favourable for Lithium Energy”
During a recent trip to China, the company was highly impressed by the capabilities of Lanshen and their relatively mature sorbent-based technology that has been proven on industrial and commercial scales.
The try before we buy commercial arrangements agreed under the framework agreement, through which Lanshen has committed to fully fund the construction and initial operation of the plant, are highly favourable for Lithium Energy.
The development of this plant will enable the company to fully test the capabilities of the plant before making a purchase decision and will provide valuable information towards the development of the broader Solaroz Project as a whole.
The Mario Angel concession is ideally suited as a testbed for this DLE technology, being a stand-alone concession located next to an existing road and less than 15km from Allkem’s (ASX:AKE) existing production facility.”
Lithium Energy is an ASX-listed battery minerals company focused on developing its flagship Solaroz Lithium Brine Project in Argentina, along with the Burke and Corella Graphite projects in Queensland.
Xi’an Lanshen New Material Technology is a private company based in Xi’an, China, that specialises in its one-step molecular recognition technology for lithium extraction, which selectively extracts lithium directly from lithium-rich brines by using proprietary lithium adsorbent material.
Write to Harry Mulholland at Mining.com.au
Images: Lithium Energy Ltd
