SMM3, March 25-Australian lithium and tantalum producer Pilbara Minerals Limited (Pilbara Mineral) announced that Pilbara will set up a joint venture with Posco to produce lithium cathode materials in South Korea, with Pilbara holding up to 30 per cent. The project combines the raw material advantages of spodumene ore suppliers with the advantages of "PosLX" purification technology independently developed by Posco Iron, and aims to achieve an annual capacity of 40, 000 tons of lithium hydroxide and lithium carbonate.
He believes that it is not easy for Pilbara Minerals to have a strong and technologically capable partner like POSCO. It gives the company an exciting opportunity to work with them to enter the battery and cathode material supply market and become a fully vertically integrated global lithium raw material. The rapid growth in lithium chemical consumption in South Korea is not to be underestimated, and Pilbara believes that this partnership puts Pilbala Mining Company at the forefront of this emerging market, according to Benchmark Minerals Intelligence ('s forecast in October 2018. South Korean battery makers supply 25 per cent of global capacity by 2028.
It is reported that the plant, located in the Guangyang Free Economic Zone of South Korea, has a capacity of up to 40,000 tons of lithium carbonate and uses POSCO's patented PosLX purification process to treat spodumene from the Pilgangoora Lithium Tantalum Project (Pilgangoora Project). Since the fourth quarter of 2018, Pilbara Minerals has been conducting technical due diligence to assess the proposed chemical plant development, and the work to date has yielded gratifying results. Due diligence includes visits by technicians and evaluation of POSCO's existing commercial operating plants, using their PosLX technology, spodumene delivered by the Pilbora Minerals-based Pilgangoora project.
POSCO developed its first commercial-scale operation (after the initial development of a pilot plant), producing up to 2500 tons of lithium chemicals based on lithium carbonate equivalent. Based on the chemical conversion of spodumene, the plant has the ability and flexibility to produce advanced lithium hydroxide or alternative lithium carbonate products (that is, the plant has dual-purpose capabilities) and has low impurities in the final products produced. So far, the production of battery-grade lithium hydroxide has been tested by major cathode manufacturers in South Korea, and has passed its certification process. With PosLX technology, POSCO has proven the production of high-purity lithium hydroxide, which is expected to be highly sought after by Korean battery manufacturers.
Studies conducted by POSCO have determined that the capital development costs of the proposed chemical conversion and purification facilities are broadly in line with the recently established / built and operated lithium chemical facilities elsewhere. The operating costs of chemical conversion and purification are also expected to meet the industry standards for the production of high-purity products. There are still some outstanding conditions that need to be met before the board of directors of Pilbara Minerals makes a final investment decision on its full participation in DJV. These conditions include the completion of further due diligence on the proposed chemical conversion plant, the finalization of financing and the final binding joint venture, as well as the terms of the technology license, which are in line with the key commercial principles previously agreed between the parties.
