Australian company Pilbara Minerals has entered into a study agreement with Chinese customer Ganfeng Lithium to evaluate the potential construction of a 32,000 metric-ton-per-year lithium conversion facility, aimed at producing lithium carbonate or hydroxide. The feasibility study for this plant, expected to be completed by the first quarter of 2025, will assess various locations, including Australia, to enhance geographical diversification in the battery chemicals supply chain. Pilbara Minerals, the largest independent lithium miner in Australia, already has existing partnerships in the lithium sector and is exploring opportunities for midstream lithium chemicals production to optimize transportation volumes and reduce carbon emissions. The study will also explore potential economic incentives, taxation benefits, and funding opportunities offered by various countries interested in establishing lithium chemical production. In the event of a joint venture, Pilbara Minerals and Ganfeng Lithium plan to have equal ownership of the project, with Ganfeng open to adjusting its stake based on potential benefits from U.S. subsidy schemes with sourcing requirements. As Pilbara Minerals expands its spodumene production capacity to 1 million tonnes per year, the company remains committed to supplying 300,000 tonnes annually for this project and will assess further production capacity expansion beyond the initial target in the coming months.
Pilbara Minerals and Ganfeng Lithium to Explore Lithium Chemical Plant Development