Infinity Lithium Corporation Ltd (ASX:INF) has successfully wrapped up its updated scoping study for the San José Lithium Project in Spain, which places a strong emphasis on reducing emissions and enhancing energy security.
This comprehensive study explores the potential for a significant expansion of battery-grade lithium hydroxide monohydrate (LHM) production at the project.
The key process under the microscope was the use of lithium-bearing hard rock mica as the primary feedstock, sourced from an underground mineral extraction operation.
Enhanced production and sustainability
The updated scoping study outlines several improvements in the project's production and sustainability aspects.
This includes the establishment of a fully integrated production facility on-site, which is aimed at delivering significant large-scale quantities of critical raw materials and conversion capacity.
Substantial advancements in research and development programs have revealed the potential for improved lithium recoveries and efficiencies using a new conversion process called Li-Stream RPKTM.
The study points to a 33,000-tonne-per-year production, in line with end-user requirements for large volumes.
This breakthrough is not limited to traditional sources of lithium-bearing materials and offers opportunities for other unconventional sources.
Long life span for consistent supply
The project promises a long life span of around 26 years, ensuring a consistent and sustainable supply for European lithium-ion battery and electric vehicle value chains.
A life-cycle assessment conducted by industry leaders Minviro reveals a low carbon footprint of 8.3 kilograms of carbon dioxide per tonne of lithium hydroxide monohydrate produced.
This is very low for the hard rock lithium production sector, where peers can be between 15 and 20 kilograms and higher.
On the economics front, the project boasts a low C1 cost and strong fundamentals, based on conservative assumptions, driven by increased volumes and innovative process efficiencies.
Financial highlights include:
- NPV8 pre-tax US$4,116 million, IRR pre-tax 25.8%; NPV8 post-tax US$2,870 million, IRR post-tax 21.3%;
- steady-state C1 costs (post ramp up) of US$5,723/t LHM after by-product credits; and
- LHM price forecast US$27,000 over the life of the project.
Importantly, the project aligns with the European Union's strategic objectives. It plays a pivotal role in securing critical raw materials and chemical conversion capacities within the local lithium-ion battery value chain.
INF CEO and managing director Ryan Parkin said: "The significant advancements in our R&D programs have demonstrated material upside potential for San José and present an opportunity for other non-traditional sources of lithium-bearing materials to utilise our intellectual property to maximise lithium recoveries while providing significant social and environmental upside."