Prospect Resources’ offtake partner and major shareholder, Sinomine Resource Group Co., has commenced construction of a battery grade lithium hydroxide plant and expansion of its existing battery grade lithium carbonate plant.
Zimbabwe – Dongpeng New Materials Co., Sinomine’s wholly-owned subsidiary, commenced phase 1 of its expansion plan focused on development of the 15 000 tpa battery grade lithium hydroxide plant at Dongpeng’s existing facility in Xinyu City, Jiangxi Province, with expected completion by August 2020.
The lithium carbonate equivalent (LCE) of this lithium hydroxide output is approximately 23 000 tpa.
Prospect’s offtake agreement with Sinomine makes up approximately 64% of the lithium hydroxide plant’s total annual LCE requirements to reach capacity.
Dongpeng’s existing plant is currently producing 5 000 tpa of high purity lithium carbonate, 6 000 tpa of battery grade lithium carbonate and 3 000 tpa of battery grade lithium fluoride. Once the battery grade lithium hydroxide plant is completed, Dongpeng plans to commence expansion of its existing battery grade lithium carbonate plant from 6 000 tpa to 16 000 tpa. This will deliver Sinomine a total annual capacity of approximately 47 000 LCE.
“Dongpeng’s investment to increase its battery grade lithium carbonate production and develop a battery grade lithium hydroxide plant further advances Dongpeng as a tier1 lithium chemical converter and high quality offtake partner for Prospect. This significantly strengthens our confidence in the development of our Arcadia lithium project in Zimbabwe, whilst also de-risking our supply chain,” says Prospect Resources MD Sam Hosack.
“With an experienced management team, strong project economics and a strategic offtake partner such as Sinomine, Prospect is well positioned to achieve its vision to become Africa’s leading battery mineral company,” Hosack concludes.