Lithium Universe (ASX: LU7) has visited a number of lithium producing operations in China as it ramps up its Canadian battery metals development plans.
The company’s recent trip was conducted by key members of the Board and the CEO, to various Chinese lithium producers. The trip, led by Executive Chairman, Iggy Tan, along with Board directors Patrick Scallan and Dr. Jingyuan Liu, alongside CEO Alex Hanly, aimed to gather direct feedback from industry executives, validate LU7 process design, reaffirm construction philosophy, and assess market-induced strategic expansions. Inspections were undertaken at various lithium refinery facilities in the provinces of Shangdong, Hubei and Sichuan.
Discussions with lithium conversion executives highlighted the current market conditions and sustainability concerns. The consensus among industry players suggests that current market pricing represents the likely breakeven point for the production of battery-grade lithium hydroxide and carbonate. This reaffirms Lithium Universe’s commitment to navigating through lithium market dynamics and solidifying our pivotal role within the growing lithium supply chain in North America.
In anticipation of a strengthening lithium market, each of the Chinese lithium producers presented various strategic expansion plans within China and Asia. Most notably, the lithium producers that the Company met with, were expanding or modifying existing plants to have the ability to produce battery-grade lithium carbonate as opposed to expansion into lithium hydroxide. The significant increase in demand for lithium carbonate in China is due to the popularity of Lithium Iron Phosphate (LFP) batteries.
Lithium carbonate is the feedstock for LFP batteries whilst lithium hydroxide is used in the higher nickel, cobalt (NMC, LCO) type of batteries, a significant opportunity for Lithium Universe to leverage.
"The discussions had with various Chinese converters were essential and extremely valuable to the company’s understanding of the existing global conversion environment. The company has multiple points of difference that were validated on this excursion, including proven technology, demonstrated development experience, focus on lithium carbonate, and access to convert within the North American battery supply chain,” Chairman, Iggy Tan, said.
