Lepidico Limited has entered into a non-binding Letter of Intent (LOI) with Hubei Baijierui Advanced Materials Corporation (BJR) for the supply of lithium, caesium and rubidium chemicals from the Lepidico’s planned Phase 1 chemical plant in Abu Dhabi.
BJR successfully tested a caesium-rubidium intermediate product from Lepidico’s pilot plant in 2020 and further product evaluation is planned in parallel with consideration of commercial terms for offtake.
Lepidico’s Managing Director, Joe Walsh, said that the company looks forward to working with BJR and establishing a mutually rewarding long-term relationship.
“Lepidico’s Phase 1 Project provides a unique opportunity for the supply of caesium and rubidium sulphates for both industrial use and/or conversion to fine specialty chemicals,” he said.
“The company’s lithium marketing strategy is to supply both industrial users such as BJR and lithium-ion battery supply chain manufacturers via direct sales agreements, with a smaller proportion of output allocated to other industrial users and spot market sales via agency agreement to broaden the customer base.”
“This approach is designed to both manage offtake risk and establish a customer base that will support Lepidico’s longer-term growth plans for a Phase 2 Project. This strategy also contemplates a U.S. supply nexus to support the debt funding envisaged under the formal Mandate with International Development Finance Corporation.”
About the chemical plant
Lepidico has completed a Definitive Feasibility Study for a nominal 5,000 tonne per annum Lithium Hydroxide Monohydrate capacity Phase 1 lithium chemical plant, targeting commercial production for 2023.
The Project incorporates Lepidico’s proprietary L-Max® and LOH-Max® technologies into the chemical conversion plant design.
Feed to the Phase 1 Plant is planned to be sourced from the Karibib Project in Namibia, 80 per cent owned by Lepidico, where a predominantly Measured and Indicated Mineral Resource of 11.87 million tonnes grading 0.45 per cent lithium oxide (Li2O), (including Measured Resources of 2.20 million tonnes at 0.57 per cent Li2O, Indicated Resources of 6.73 million tonnes at 0.39 per cent Li2O and Inferred Resources of 2.94 million tonnes at 0.50 per cent, at a 0.15 per cent Li2O cut-off) is estimated (for more information see the company’s ASX announcement on 12 March 2021).
Ore Reserves total 6.72 million tonnes at 0.46 per cent Li2O, 2.26 per cent rubidium, 2.02 per cent potassium and 320ppm caesium (see the company’s announcement on 28 May 2020).
About BJR
BJR specialises in the manufacture of a broad range of high purity lithium, caesium and rubidium salts, supplied to both domestic Chinese and international customers.
It also has an active research and development capability to support specific customer needs, with its intellectual property protected by 14 proprietary innovation patents.
BJR has three manufacturing locations within Hubei Province, China.