London-listed Alkemy Capital Investments and its subsidiary Port Hedland Lithium (PHL) released on Wednesday an early feasibility study for the proposed lithium sulphate processing facility in Australia.

According to the Class 4 study prepared by Wave International, the initial capital cost for Train 1 would be $322 million, delivering an internal rate of return of 18% and a post-tax net present value (NPV) for Train 1 of $293m. NPV on the four proposed trains would be $1 billion, Kallanish understands.

The project, being developed by PHL, is set to be Australia’s first stand-alone lithium sulphate processing facility. The plant will process around 180,000 tonnes/year of spodumene concentrate from third-party miners into 40,000 t/y of lithium sulphate monohydrate (LSM). The product will then be shipped to the UK to feed the proposed lithium hydroxide refinery Alkemy’s Tees Valley Lithium (TVL) is developing in Teesside, northeast England.

“The feasibility study has been produced ahead of schedule in response to the due diligence requirements of certain global OEMs looking to utilise and contract with Alkemy’s refineries,” the company says.

“We are moving quickly to establish a major independent and sustainable lithium sulphate producer at the Boodarie Strategic Industrial Area in Port Hedland and are pleased with the validation that this independent feasibility study brings to our project,” adds Alkemy’s director Sam Quinn.

By conducting the first part of the refining process in Australia, powered by renewable energy, Alkemy is minimising the volume of waste material exported and reducing both the shipping cost and the embedded carbon of the resulting lithium products. The new “Pilbara to Teesside supply chain” is enabled by the free trade agreement between Australia and the UK.

Discussions with both potential feedstock suppliers and customers are progressing well, Alkemy says, noting it will update the market “in due course as these discussions conclude.”