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Avalon Announces Partnership Agreement to Establish Ontario's First Regional Lithium Battery Materials Refinery in Thunder Bay
Toronto, Ontario--(Newsfile Corp. - April 4, 2022) - Avalon Advanced Materials Inc. (TSX...
About this update from Avalon Advanced Materials Inc.
[{"type":"text","content":"Avalon Announces Partnership Agreement to Establish Ontario's First Regional Lithium Battery Materials Refinery in Thunder BayToronto, Ontario--(Newsfile Corp. - April 4, 2022) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) (\"Avalon\" or the \"Company\") is pleased to announce that it has signed a binding letter of intent with RenJoules International Ltd., an Essar Group Company (\"Essar\"), to become a strategic partner and co-developer in support of Avalon's plans to establish a regional lithium battery materials supply chain to serve the needs of future electric vehicle and battery manufacturers in Ontario and elsewhere.This agreement involves providing initial financial and development support for building a lithium refinery in Thunder Bay, Ontario that will be designed to accept lithium minerals concentrates, not only from Avalon's Separation Rapids Lithium Project north of Kenora, ON, but also from other aspiring new producers from the many lithium pegmatite resources that occur in northwestern Ontario. It will operate as a separate private business, called Avalon Lithium Inc., a newly established Avalon subsidiary in which Essar will become a co-owner.With the agreement announced today, the partners will immediately begin the key next steps including; finalizing initial commercial terms and completion of final feasibility studies for both the refinery operations and lithium mineral concentrate production at the Separation Rapids site that will provide the initial feed for the refinery until other new producers also get started. This will also include finalizing the exact location for the refinery in Thunder Bay and proceeding with initial site preparation work both at Separation Rapids and the Thunder Bay site. Present indications on demand for lithium battery materials produced in Ontario are supporting an initial production capacity for the refinery of 20,000 tonnes per annum of lithium hydroxide and/or lithium carbonate. This will require a capital investment in the order of C$500 million, which Essar and Avalon would jointly fund, with funding also anticipated from applicable Government programs and other private investors including Indigenous businesses in Northern Ontario. With construction planned to begin this year, it could be in operation by 2025. This will also create new economic development oppor...