Shifting battery demand is drawing major investment in lithium hard-rock projectsThe global trend towards higher energy density rechargeable lithium-ion batteries is shifting chemical compositions towards nickel-heavy NMC 8:1:1 ratios which favour lithium hydroxide. The broad developed lithium workflow for hard-rock spodumene producers initially manufacturers lithium hydroxide with a subsequent phase (and cost) to lithium carbonate.Roskill recognise the technology trend, estimating global growth of battery-grade lithium hydroxide of 38.8% CAGR through 2031 compared to 13.1% CAGR for lithium carbonate. Total consumption for lithium hydroxide is expected to rise to more than 4x compared to lithium carbonate, with demand climbing to 1,605,500t and 460,100t respectively in 2031.As highlighted in Namaska Lithium’s unique Whabouchi process, the concentration of ore, calcination and roasting, impurity removal and upgrading outputs battery-grade lithium hydroxide directly for US$2,811/t. The addition of carbon dioxide generate a battery-grade lithium carbonate product for US$3,403/t (additional cost associated with carbon dioxide).In contrast, lithium brine producers which dominate the ‘Lithium Triangle’ in South America initially output lithium carbonate, with subsequent processing required for lithium hydroxide. As a result, producers including Albemarle, SQM, Tianqi, sit higher on the cost curve for the more desirable lithium hydroxide.To capture the growing trend, Albemarle Corp. have agreed to pay $1.15bn for a 50% stake in a potential JV with Mineral Resources Ltd. which owns and operates Wodgina hard-rock in Australia. The largest lithium producers will manage the marketing and sales of lithium hydroxide, and highlights the swift reaction towards shifting demand that has previously been concentrated on lithium carbonate.Albemarle had announced earlier this month it was halting expansion plans for its Chilean operation beyond 2021. Instead, the company will focus on expanding its Kemerton plant in Western Australia, which processes hard rock from the Greenbushes mine to produce lithium hydroxide.“We’re seeing a significant acceleration in demand of lithium hydroxide and so we need to address that”, announced CEO Luke Kissam.
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