India's Manikaran and Australia's Neometals look to set up lithium refinery JV in India

The partners will share test-work and evaluation costs for battery grade lithium chemical production for EVs, energy storage and other opportunities.

Autocar Professional BureauBy Autocar Professional Bureau calendar 25 Jun 2019 Views icon13944 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
India's Manikaran and Australia's Neometals look to set up lithium refinery JV in India

Neometals, Kalgoorlie lithium hydroxide refinery in Australia is part of the company's strategy to realise maximum value from its lithium feedstocks and targeted for applications in EVs and energy storage, among others. (Image courtesy - Neometals)

India's third largest power trading company, Manikaran Power has signed an MoU with Australia's Neometals to jointly fund the evaluation of developing the first lithium refinery in India.

The JV will see partners bring their respective skills, resources and know-how towards achieving a positive outcome from the evaluation activities and will also share costs equally. Upon completion of the feasibility analysis, and subject to agreement on terms, a final investment decision will be considered for a 50:50  JV to progress and develop the lithium refinery.

A final investment and formal JV commitment would see Neometals contributing to the venture its ‘life-of-mine’ offtake option volume (i.e. up to 57,000-tonne per annum of 6 percent spodumene concentrate) retained as part of its Mt Marion equity sale agreement. Additional spodumene feed would be sourced as required from external sources to meet the lithium refinery’s needs depending on its nameplate capacity.

As per the announcement, once the JV is formalised, Manikaran will take the lead role in procuring project financing for not less than 50 percent of the capital expenditure required, securing regulatory approvals and Indian government subsidies (as available), securing a suitable site for the lithium refinery, and securing necessary utility and reagent supplies. Neometals says this MoU is a significant step in its downstream lithium processing strategy, which allows the realisation of value from its offtake option to participate in higher value, higher margin lithium chemical production for electric vehicles, stationary energy storage and a more sustainable future.

The partners estimate that the feasibility analysis will be completed in about 18 to 24 months, with a formal announcement on whether to proceed with a potential JV likely in the first half of 2021. Neometals previously completed a capital cost study on a proposed lithium refinery operation in Kalgoorlie, Australia, which indicated a higher than anticipated capital intensity for the 10,000-tonne lithium-hydroxide capacity. 

RELATED ARTICLES
Bajaj Auto launches new Chetak 3503 at Rs 110,000

auther Autocar Professional Bureau calendar29 Apr 2025

The Chetak 3503, with a claimed range of 155km, 63kph top speed and a slower charging time than its 35 Series siblings, ...

Hyundai walks the eco talk with biogas plant, material recovery plant in Gurugram

auther Autocar Professional Bureau calendar22 Apr 2025

Operational since October 2022, the facility targets sustainable waste management in Gurugram by undertaking scientific ...

Rajiv Bajaj reappointed MD and CEO of Bajaj Auto for five-year term

auther Autocar India calendar19 Mar 2025

Bajaj Auto’s Board of Directors has approved the re-appointment of Rajiv Bajaj as the company’s MD and CEO for another f...