FPX Nickel (TSXV: FPX) has successfully marked a significant achievement in its pursuit of sustainable battery materials by completing pilot-scale hydrometallurgy tests at its nickel refinery, leading to the production of battery-grade nickel sulphate (NiSO4).

This milestone is part of the company’s ambitious plan to establish North America’s largest nickel sulphate refinery, which aims for a production capacity of 32,000 tonnes of nickel in sulphate form annually. This development is particularly crucial as demand for nickel, a vital component in electric vehicle (EV) batteries, continues to surge in response to the global shift toward sustainable transportation.

The successful pilot tests build upon a previous bench-scale testing program conducted last year, which demonstrated the viability of the process. FPX’s initiatives have received critical support, notably a grant from Natural Resources Canada, under the federal government's Critical Minerals Research, Development and Demonstration program. This backing underscore the importance of developing a domestic supply chain for essential minerals, particularly as nations worldwide seek to reduce reliance on foreign sources and bolster their own resource capabilities.

Andrew Osterloh, Senior Vice President of Projects and Operations at FPX, remarked on the significance of the pilot plant results. He stated that these outcomes confirm the technical advantages of utilizing awaruite nickel mineralization for producing battery-grade nickel sulphate. Awaruite, a naturally occurring nickel alloy, allows for a more efficient and environmentally friendly extraction process, which is crucial in meeting both economic and sustainability goals.

Osterloh highlighted that the Baptiste project has the potential to boost Canada’s current annual nickel production by nearly 50% without necessitating any expansion of existing nickel smelting or complex refining capacities. This innovative approach aims to create a streamlined, low-cost, low-carbon pathway connecting mining operations directly to EV battery production, a strategy that is gaining traction as the automotive industry pivots toward electrification.

The pilot-scale tests employed awaruite concentrate containing 60% nickel, sourced from the Baptiste nickel-iron concentrator in central British Columbia. The hydrometallurgical process involved several key steps, including atmospheric leaching, which allows for the extraction of nickel and cobalt from the ore. Following leaching, the process included the precipitation of cobalt and nickel sulphate and nickel scavenging using ammonium sulphate. This method not only optimizes resource recovery but also produces a copper concentrate, adding further economic value to the overall operation.

Remarkably, the pilot plant achieved outstanding overall leach extractions of 99.3% for nickel and 97.9% for cobalt, demonstrating the efficacy of the hydrometallurgical techniques employed. These high extraction rates are vital for ensuring the economic viability of the project and aligning with the increasing demand for high-purity nickel in the battery market.

FPX’s preliminary feasibility study for the Baptiste project, based on an assumed nickel price of $8.75 per pound, suggests an after-tax net present value (NPV) of $2.01 billion and an internal rate of return (IRR) of 18.6%. The project is expected to have a lifespan of 29 years, with average annual nickel production projected at 132 million pounds. The initial capital expenditure (capex) is estimated at $2.18 billion, with an additional $763 million earmarked for future expansions and sustaining costs totalling $1.18 billion.

Overall, FPX Nickel's commitment to advancing its projects reflects a broader trend in the mining sector toward sustainable practices. By developing local supply chains for battery materials, the company positions itself as a key player in the electric vehicle market and contributes to the ongoing transition to clean energy technologies. The successful completion of these pilot tests not only underscores the potential of FPX’s operations but also highlights the growing importance of sustainable practices in meeting the demands of a rapidly evolving global market.