Lithium Universe secures strategic footholds in Canadian cement and lithium processing sectors

Lithium Universe (ASX: LU7) is on track to achieve a number of targets in its strategy to grow electric vehicle (EV) supply chains in North America after a positive March quarter.

The highlight of the period was the company’s release of definitive study results for its Bécancour lithium refinery in Québec and the decision to take a positive financial investment decision for the project.

The refinery study identified a net present value of approximately $1.13 billion, with an estimated full-rate payback period of 3.9 years, forecasting the project would generate approximately $603 million in annual revenue at full production capacity, with costs totalling around $371m.

Offtake discussions

The period also included the company commencing negotiations with numerous original equipment manufacturers.

Lithium Universe’s strategy is to focus on the growing commitments to battery manufacturing by groups including Ford, General Motors, Stellantis, Toyota, LGES, SK Innovation and Samsung SDI.

The discussions will seek to establish strategic partnerships with customers for battery-grade lithium carbonate, with an emphasis on a customer base focused on EV demand growth in North America and Europe.

Strategic cement partner

Lithium Universe also signed a strategic memorandum of understanding with cement partner Lafarge Canada, which comes at a time of significant growth in the Canadian cement industry.

The deal with the Canadian cement producer is for the exclusive supply of all aluminosilicate product (ACSR) from Bécancour.

ACSR is used as an additive to cement products and improves cement durability, strength and production costs.

University partnership

Elsewhere, the company entered into a lithium processing collaboration with renowned local university Polytechnique Montréal to build local expertise in battery materials and enhance education, training and research in the Canadian critical minerals industry.

More than 90% of lithium iron phosphate battery manufacturing comes from outside North America, but the region is expanding rapidly.

The region is planning to add nearly 1,000 gigawatt-hours of capacity by 2028, requiring 850,000 tonnes of lithium carbonate equivalent per annum.

With no current lithium converters, efforts are underway to reduce reliance on foreign supply chains.