$104m lithium demonstration plant set to be built at Pilgangoora mine

The Boards of Pilbara Minerals Limited and Calix Limited have made a final investment decision (FID) for the construction and operation of a new Mid-Stream Demonstration Plant at the Pilgangoora Project in Western Australia. 

The proposed mid-stream refining plant is estimated to have a delivery cost of $104.9 million, which will be partially funded by the Australian Government through a $20 million grant under the Modern Manufacturing Initiative (MMI). 

“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 JV partner Calix. 

“The demonstration plant with Calix is an important step to further the development of the technology with the aim of commercialising the technology for application at the Pilgangoora operation and across the lithium industry through our commercialisation JV with Calix. This could in time open up an additional revenue stream for the Company. 

“I would like to acknowledge the financial contribution of the Australian Government to the demonstration plant project through a $20M Modern Manufacturing Initiative Grant,” Pilbara Minerals Limited Managing Director and CEO Dale Henderson said. 

Mid-Stream Demonstration Plant layout (source: Pilbara Minerals Limited)

The Mid-Stream Demonstration Plant will process spodumene from the Pilgangoora mine. At full production capacity, the refining plant is projected to produce more than 3,000 tonnes a year of concentrated lithium-phosphate salt from a feedstock of approximately 27,000 tonnes a year of spodumene including lower grade fine spodumene concentrate. 

The facility will utilise Calix’s patented electric kiln technology to demonstrate the benefits of producing mid-stream lithium enriched products. The technology to be used has the potential to reduce hard-rock lithium processing carbon emission intensity when powered by renewable energy. 

This mid-stream strategy has the potential to materially improve the battery materials supply chain for lithium by reducing carbon energy intensity while lowering transport volumes and creating more value at the Pilgangoora mine. 

The Mid-Stream Demonstration Plant is set to be a game-changer in the processing of spodumene. 

“We are delighted that the Project has passed the FID milestone, and we thank the Australian Government for their support. 

“Together, 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 resources with innovative Australian technology to enable the reliable and sustainable supply of value-added critical minerals to the world,” Calix Limited CEO and Managing Director Phil Hodgson said. 

With FID reached, the joint venture partners are targeting to complete detailed engineering by March 2024 and commence construction of the demonstration plant in June of the same year. First lithium salt is anticipated to be produced by June 2025. 

Source: Calix Limited; Pilbara Minerals Limited; Reuters; Australian Mining; Mining Technology