Pilbara Minerals Achieves Status as Lithium Hydroxide Producer

Pilbara Minerals has taken a significant step forward in its mining endeavors by venturing into lithium chemicals, marking a strategic expansion of its portfolio. The company officially inaugurated its lithium hydroxide operation, symbolizing a noteworthy milestone in its collaboration with POSCO, a South Korean multinational corporation. The joint venture (JV) between Pilbara Minerals and POSCO operates the chemical facility, with Pilbara owning 18% of the plant, while POSCO holds the majority share of 82%.

The ceremonial ribbon-cutting event for Train 1 of the chemical facility took place in South Korea, signifying the official commencement of Pilbara Minerals' lithium hydroxide production. This foray into lithium chemicals underscores the company's commitment to diversifying its operations and engaging in the downstream value chain of the lithium sector.

The collaboration between Pilbara Minerals and POSCO on the lithium hydroxide monohydrate conversion facility has been years in the making, dating back to the initiation of discussions in 2018. The completion of the facility marks a momentous occasion for both entities, signifying progress in their shared strategy of expanding into the downstream aspects of the lithium industry.

Dale Henderson, the Managing Director and CEO of Pilbara Minerals, expressed his enthusiasm about the milestone, highlighting the collaborative efforts with POSCO. Henderson stated, “Today is a momentous occasion for both parties as we progress our strategy of diversifying into the downstream value chain.” He emphasized the shared vision of becoming a significant producer of lithium hydroxide, contributing to the global transition toward a more sustainable energy future.

Under the current ownership structure, Train 1 of the facility is designed to have an annual production capacity of 21,500 tonnes of lithium hydroxide when operating at nameplate capacity. Pilbara Minerals retains the option to increase its ownership stake from 18% to 30% within 18 months after the facility achieves 90% of its nameplate capacity.

Pilbara Minerals' exploration into downstream lithium opportunities extends beyond its POSCO JV. In August, the company made a final investment decision on its Calix JV, signaling its commitment to diversifying its lithium-related endeavors. The Calix JV involves the construction of a demonstration plant to assess the feasibility of producing midstream lithium phosphate through electric calcination.

The strategic move into midstream lithium phosphate aligns with market feedback and engagement with participants in the battery and chemicals supply chain. Pilbara Minerals acknowledged the strong potential of midstream lithium phosphate as an improved lithium feedstock for the lithium chemicals industry. This decision reflects the company's proactive approach in responding to industry dynamics and exploring innovative avenues within the lithium value chain.