Lithium Universe secures a prime location for its refinery in Quebec to fill the processing gap in North America

Lithium Universe Secures Prime Location for Its Refinery in Quebec to Address Processing Gap in North America

Lithium Universe Ltd (ASX:LU7, OTC:ESMAF) is preparing to acquire a commercial property in the Parc Industriel du Bord de l'Eau de Bécancour in Quebec, Canada, as part of its strategy to address the capacity gap of lithium conversion in the North American market.

In a world where demand for electric vehicle (EV) batteries is growing exponentially, Lithium Universe Ltd is taking proactive steps to strengthen its lithium conversion capabilities. The company recently announced its intention to acquire strategic land in Quebec, marking a significant step in its ambition to meet the growing need for lithium for EV batteries in North America.

A strategic location for the future

The site, known as Lot 22, covers an area of ​​276 square meters and offers considerable potential to host up to three lithium carbonate refineries, each with an annual capacity of 423 tonnes. This initiative is part of the strategy of the Quebec Lithium Processing Hub (QLPH), aimed at strengthening lithium conversion capacity in response to growing demand for EV batteries.

The site's proximity to major cathode plants, such as those of General Motors/POSCO and Ford/EcoPro BM, as well as Northvolt's EV battery facility, highlights its strategic importance. Additionally, its location near critical infrastructure, including hydropower, natural gas and spodumene import facilities, as well as road and rail networks, ideally positions the site to support necessary expansion in the field. of lithium conversion.

Advantages and perspectives

The acquisition of this site comes at a critical time when the continent is preparing for a substantial increase in battery manufacturing, with an estimated 900 GW of capacity expected to be deployed by 2028. Lithium Universe will benefit from favorable terms, including an option fee waiver until July 2024 and a three-year option. This acquisition is conditional on regulatory and shareholder approval, as well as the successful financing of the lithium refinery project, without immediately requiring fundraising for land acquisition.

The expansion capacity offered by the site is crucial to meet growing demand, which is expected to reach 800 tonnes of lithium carbonate equivalent (LCE) per year by 000 in North America. With the strategic advantages offered by the location, Lithium Universe is well positioned to play a key role in reducing North America's dependence on foreign lithium converters and refining capacity, thereby improving security commercial and national energy.

Why Quebec?

The choice of Quebec is not accidental. The province is known for its low-cost hydroelectricity, high environmental standards and skilled workforce. These factors, combined with the site's logistical advantages, including a deep-water port and easy rail access to the rest of North America, were instrumental in Lithium Universe's decision.

In conclusion, Lithium Universe's initiative to develop lithium conversion capacity in Quebec represents a significant step forward for the EV battery industry in North America. By leveraging available resources and infrastructure, the company positions itself as a key player in the lithium supply chain, contributing to the energy transition towards cleaner and more sustainable sources.

Lithium Universe Secures Prime Location for Its Refinery in Quebec to Address Processing Gap in North America

Virginie Majaux

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