Pilbara Minerals and Calix make final investment decision for mid-stream demonstration plant

Lithium producer Pilbara Minerals (ASX:PLS) and environmental technology company Calix (ASX:CXL) have made a final investment decision to construct and operate a mid-stream demonstration plant at the Pilgangoora project.  

The project aims to demonstrate the potential to reduce carbon emissions intensity for the hard-rock lithium supply chain via the creation of a high-purity lithium-rich chemical salt using electric calcination that could be powered by renewable energy.

Life cycle assessment studies commissioned by Pilbara Minerals have calculated that when using 100% renewable electricity for electric calcination, the carbon emissions intensity of spodumene calcination can be reduced by more than 90% when compared to using coal.

Potential reductions in carbon emissions are also anticipated from producing a mid-stream product by avoiding the transport of waste associated with spodumene concentrate.

It aims to demonstrate the benefits of producing a mid-stream lithium enriched product using Calix’s patented electric kiln technology.

Calix chief executive and managing director Phil Hodgson said the company is delighted the project has passed final investment decision.

“We are delighted that the project has passed the final investment decision milestone,” he said.

“Together with Pilbara Minerals, we look forward to demonstrating the potential of our electric calcination technology to dramatically reduce the carbon footprint of Australian lithium.

“The success of the joint venture will also showcase the opportunity of combining Australian mineral and renewable energy resources with innovative Australian technology to enable the reliable and sustainable supply of value-added critical minerals to the world.”

As well as reducing calcination carbon emissions intensity, the project also aims to enable greater value extraction from hard-rock lithium assets. Potentially, this will enable more value to be captured onshore at the resource.

The strategy of producing a mid-stream product also has the potential to unlock remote hard-rock assets globally that have challenges such as long distances to export infrastructure or customers.

Pilbara Minerals chief executive and managing director Dale Henderson is excited to be taking the next step in the company’s mid-stream strategy.

“Following further studies and pilot test work, we are delighted to be taking the next step in our mid-stream strategy with the construction and operation of a mid-stream demonstration plant with our joint venture partner Calix,” he said.

“The mid-stream strategy has potential to materially improve the battery materials supply chain for lithium through reduction in carbon energy intensity, reduction in transport volumes and creating more value at the mine site.

“It has the potential to be a game changer compared to the traditional spodumene to chemicals processing route.”

At full production capacity, the project is estimated to produce more than 3000tpa of lithium phosphate.

As manager of the partnership, Pilbara Minerals will seek to sell all lithium phosphate produced from the demonstration plant on commercial terms.