In response to the prevailing market conditions, Australian environmental technology firm Calix Limited (ASX: CXL) and Pilbara Minerals Limited (ASX: PLS) have decided to defer any construction activities for the Mid-Stream Demonstration Plant Project ("the Project") that are not already under contract. This Project, developed as a Joint Venture (JV) between the two companies, is currently on track and remains within budget, with 60% completion reported as of September 2024. While ongoing construction will be finalized, the Project will be paused until market conditions become more favorable or until additional government support can be secured for its continuation.

Both Calix and Pilbara Minerals are steadfast in their commitment to advancing the Demonstration Plant Project. They are actively engaging with various government bodies to explore further funding options. The joint venture is dedicated to commercializing the Mid-Stream technology for the broader lithium processing industry and will continue to pursue opportunities to scale and implement this technology across other global lithium assets.

Phil Hodgson, CEO and Managing Director of Calix, emphasized the project’s progress, stating, “Despite current conditions necessitating a pause in construction of the Mid-Stream Demonstration Plant, the excellent progress to date means the Project can swiftly recommence and move into the commissioning phase once conditions permit.” He also noted that an update on the Project's status will be provided during the upcoming Annual General Meeting on November 22, 2024. Hodgson expressed enthusiasm about the potential of electric calcination to deliver lower-cost and lower-carbon solutions for lithium processing in the global market.

Dale Henderson, Managing Director and CEO of Pilbara Minerals, acknowledged the impact of the current lithium price environment on their decision to pause. He stated that this pause allows the joint venture to align its spending with improved market conditions. Henderson reaffirmed their full support for the midstream strategy and the joint venture, recognizing the Project's potential to revolutionize the lithium supply chain by lowering emissions and enhancing value-added processing. He reiterated their commitment to the partnership with Calix, indicating that they will work together to assess the right timing to resume the Project as market conditions improve or as further funding becomes available.

In summary, both companies remain dedicated to the long-term vision of the Mid-Stream Demonstration Plant Project and are prepared to adapt their plans in line with market developments.

Calix Limited (ASX: CXL) is an environmental technology firm addressing critical global issues related to industrial decarbonization and sustainability. The company's innovative patented core platform technology facilitates the indirect heating of raw materials, allowing for efficient, precise, and flexible mineral processing powered by renewable energy, as well as the capture of unavoidable industrial emissions. In response to the growing demand fueled by global decarbonization initiatives, Calix is leveraging its core technology across various sectors, including cement, steel, alumina, and critical minerals. The company is also focused on direct air capture of atmospheric carbon dioxide and the development of sustainable environmental products.