Australia Lithium Refining and Processing Plant Feasibility Study with Global Battery Supply Chain Outlook

Executive Viability Abstract

This feasibility study evaluates the establishment of a world-class Lithium Hydroxide (LiOH) Monohydrate refinery in Western Australia. The project aims to transition from spodumene concentrate export to high-value downstream processing, capitalizing on Australia's massive reserves and the accelerating global shift toward Electric Vehicles (EVs). The analysis indicates strong economic viability despite short-term price volatility, supported by the U.S. Inflation Reduction Act (IRA) and EU Critical Raw Materials Act which favor Australian-sourced battery materials.

## Market Analysis Global demand for lithium-ion batteries is projected to grow at a CAGR of 20% through 2030. Australia currently produces over 50% of the world's spodumene but lacks sufficient domestic refining capacity. The market is shifting from Lithium Carbonate to Lithium Hydroxide due to the dominance of high-nickel cathode chemistries (NCM 811) which offer higher energy density. ## Technical Feasibility The plant will utilize a conventional sulfate roasting process, the industry standard for hard-rock spodumene conversion. The process involves: 1) Decrepitation (Alpha to Beta phase), 2) Sulfating Roast, 3) Leaching and Purification, and 4) Crystallization. Proximity to the Kwinana or Kemerton industrial hubs provides access to necessary reagents, skilled labor, and port infrastructure. ## Financial Projections Total CAPEX is estimated at $750M USD for a 24,000 tpa (tonnes per annum) capacity. Revenue models are based on a conservative long-term LiOH price of $25,000/t. OPEX is projected at $7,500/t, providing a healthy margin. The project benefits from the 10% Critical Minerals Production Tax Incentive announced by the Australian Federal Government. ## Risk Assessment Key risks include lithium price volatility, technical commissioning delays (historically common in refinery projects), and rising energy costs. Mitigation strategies include long-term off-take agreements with Tier-1 battery manufacturers (e.g., Tesla, LG Energy Solution) and the integration of renewable energy sources to lower the carbon footprint.