Lithium Universe signs key logistics agreement to support Bécancour lithium refinery in Quebec
Lithium Universe’s (ASX: LU7) mission to close the ‘Lithium Conversion Gap’ in North America has taken an important step with the signing of a key agreement to enhance its future access to markets and logistics.
The company has entered into a memorandum of understanding (MoU) with Servitank to support the logistics of essential chemical products for its Bécancour lithium refinery operations in Quebec.
Under the agreement, Servitank will leverage its expertise in supply chain management and multimodal logistics to support the Bécancour operation.
Supply chain optimisation
Quebec-based Servitank specialises in optimising supply chain processes and logistics solutions across various industries including chemicals and raw materials.
It has a strong focus on multimodal handling, employing innovative strategies to save time and reduce costs for its clients.
Notably, its parent company has extensive experience in the Bécancour and Trois-Rivières areas, having successfully managed logistics and moisture control for key players in the lithium sector in North America.
Detailed discussions
Lithium Universe is developing the Bécancour refinery to produce 18,270 tonnes per annum of green, battery-grade lithium carbonate.
Chair Iggy Tan said the MoU paves the way for detailed discussions and the eventual drafting of definitive agreements.
“This partnership with Servitank is a significant step towards realising our vision for the Bécancour lithium refinery,” Mr Tan said.
“We are particularly focused on identifying a single logistics supplier capable of supporting us in sourcing most of our chemical reagents, which will simplify our supply chain and enhance operational efficiency.
Storage solutions
Servitank is using its local experience to evaluate various storage solutions at its Bécancour Port terminal, which may facilitate the efficient trucking logistics required to deliver key liquid chemicals directly to Lithium Universe’s operational site.
It is investigating the construction of dedicated storage tanks for specific process reagents, positioning itself to supply critical chemicals directly to Lithium Universe and other companies within the Bécancour Industrial Park.
Servitank will also assist in exploring procurement options within the local area for other dry bulk reagents to meet Lithium Universe’s specific operational requirements.
Enhanced sustainability
Servitank’s facilities in Bécancour will play a key role in the storage and transportation of spodumene, with the company’s sister company Somavrac to provide advanced bagging machinery and bulk storage solutions at its Trois-Rivières location, optimising operational efficiency and supporting the needs of the refinery.
Lithium Universe and Servitank will also collaborate to investigate storage opportunities and potential partnerships with cement companies within the Somavrac group’s client base.
This investigation will seek to effectively utilise Lithium Universe’s alumina silicate by-products, enhancing sustainability and resource management.
Furthermore, the two companies will assess storage requirements for sodium sulphate, considering its potential use within the pulp and paper industry in North America.