Avalon's PEA underway for Thunder Bay-based lithium project
"The forecasted battery manufacturing capacity is expected to increase over the coming years as world EV and battery utilization becomes more mainstream," said Avalon Chief Executive Officer Scott Monteith.
"The decision to pursue production of battery grade lithium hydroxide and lithium carbonate is driven by continued strength in lithium battery demand and North American supply chain needs for high-quality product produced in North America."
Avalon Advanced Materials Inc. has engaged DRA Americas Inc., to commence a Preliminary Economic Assessment of a lithium hydroxide conversion facility.
The project will be administered under AVL's wholly-owned subsidiary Lake Superior Lithium Inc. The PEA will consider feed sourcing of high-grade lithium concentrates from various sources. The lithium conversion facility will feature the environmentally friendly Metso lithium conversion technology. This study will include lithium concentrate reagent receiving and storage, processing, and site infrastructure as well as shipping/handling of product and byproduct off site.
The Metso lithium conversion technology is being deployed globally with two currently under construction and expected to be operational from 2025. The Metso innovative technology is an acid-free lithium conversion approach that eliminates the use of hazardous reagents and produces a byproduct that is a mixture of sand and limestone. The byproduct material can be used in the production of construction materials.
In June of 2023, Avalon purchased "a crown jewel" brown field industrial site within Canada located at 965 Strathcona Avenue in the heart of Thunder Bay, Ontario. The 100% owned site is a 383 Acre site and has direct access to all infrastructure needs including access to 80-100 MW of electrical power, natural gas, town water and sewer, rail and two on site rail spurs, road access near the Trans Canada Highway, and an open water port on the shore of Lake Superior.
The proposed production level of the facility would be based on similarly designed units and is anticipated to be in the order of 30,000 tonne per year lithium hydroxide (LiOH) production with an operating life of over 20-years. The facility would be designed to produce both lithium hydroxide and lithium carbonate to address demand for the down stream consumers.
Avalon has engaged DRA as the lead consultant to work closely with the Company, its technology partner Metso and all subcontractors and concentrate supply partners. DRA will provide overall coordination of the PEA pulling together and integrating all aspects of the project.
About DRA Global
DRA Global Limited is an international multi-disciplinary engineering, project delivery and operations management group, predominantly focused on the mining, minerals, and metals industry.
The Group has an extensive track record spanning almost four decades across a wide range of commodities. Our teams have deep expertise in the mining, minerals, and metals processing industries, as well as related non-process infrastructure such as, water, and energy solutions.
DRA covers all major mining centres with offices across Africa and the Middle East, North and South America, and the Asia-Pacific.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian advanced manufacturing company focused on vertically integrating the Ontario lithium supply chain. The Company, through its joint venture with SCR-Sibelco NV, is currently developing its Separation Rapids lithium deposit near Kenora, ON, while also continuing to advance the Snowbank lithium and Lilypad lithium-caesium projects. Avalon is also working to develop its Nechalacho rare earths and zirconium project located in the Northwest Territories. This deposit contains critical minerals for use in advanced technologies in the communications and defense industries among other sectors.
In addition to these upstream activities, Avalon is executing on a key initiative to develop Ontario's first midstream lithium hydroxide processing facility in Thunder Bay, ON, a vital link bridging the lithium resources of the north with the downstream EV battery manufacturing base in the south.
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