Quebec Lithium Refinery Seeks 140,000 Tonnes Annual Spodumene Supply

Lithium Universe (LU7)

Lithium Universe's Quebec lithium refinery targets 140,000 tonnes yearly spodumene concentrate feedstock agreements. The Becancour facility negotiates with operational and near-term developers for decade-long supply contracts. This ambitious Quebec lithium refinery project strengthens North America's battery materials processing capacity significantly.

Phased Production Ramp-Up Starting 2028

LU7 plans strategic production scaling beginning with 56,000 tonnes in 2028. The company increases intake to 98,000 tonnes by 2029 before reaching full capacity. Meanwhile, the Quebec lithium refinery maintains ownership of all produced battery-grade lithium carbonate. The processor will purchase spodumene at benchmark prices for market flexibility.

Domestic processing offers substantial economic advantages over Chinese refinement alternatives. Furthermore, Canadian production saves $1,000-1,100 per tonne in transportation costs alone. The 25% import tariff elimination provides additional competitive advantages for North American buyers.

Competitive Economics Support Project Viability

The feasibility study reveals operating costs of $3,931 per tonne for processing. Capital investment totals $549 million with breakeven at $14,000/t lithium carbonate pricing. Therefore, current market conditions support strong project economics and profitability potential. LU7 remains flexible on feedstock sources including Brazil and African suppliers.

The Quebec lithium refinery avoids tolling arrangements to maintain product control completely. Moreover, this strategy allows direct sales to customers or spot market opportunities. As a result, Becancour positions itself as a strategic Western lithium processing hub. The facility addresses critical supply chain gaps in North American battery manufacturing.

The Metalnomist Commentary

LU7's feedstock search highlights North America's lithium processing bottleneck despite abundant upstream projects in development. The $1,000+/t transportation savings versus Chinese processing creates a compelling value proposition, but securing 140,000 tonnes of spodumene annually remains challenging given limited operational North American mines. Success depends on synchronizing refinery startup with emerging Canadian spodumene producers like Nemaska and Sayona.