Zinnwald pivoting project to focus on battery-grade lithium

8th Mar 2022 13:49

(Sharecast News) - Germany-focussed developer Zinnwald Lithium said on Tuesday that production of battery-grade lithium hydroxide (LiOH) from Zinnwaldite concentrate had been found "technically and economically viable" at its Zinnwald Lithium Project, following a pilot-scale test work programme.

The AIM-traded firm said the work also confirmed the potential to produce "economically significant amounts" of commercially-saleable co-products, including high-purity potassium sulphate (SOP) and precipitated calcium carbonate (PCC).

It said it was pivoting the project to focus on battery-grade lithium hydroxide as a primary product, to better align with the requirements of European off-takers.

Economic, technical, and commercial analysis of the test work indicated that annual lithium hydroxide production above 10,000 tons could be viable from the core Zinnwald Project.

The results from the successful tests would be applied in basic engineering, and would be used in an updated feasibility study.

"I am delighted that we have completed the pilot scale test work necessary to demonstrate that the Zinnwald Lithium Project is capable of economically producing meaningful quantities of lithium hydroxide," said chief executive officer Anton du Plessis.

"This is consistent with our strategy of pivoting the Project to focus on the production of mainstream lithium products that are in increasingly high demand by the European electric vehicle and battery sectors.

"Notably, the ability of the project to deliver domestic European supply of important co-products such as potassium sulphate further strengthens our investment case, while equally importantly, the test work indicates that the process does not generate environmentally harmful side products."

At 1521 GMT, shares in Zinnwald Lithium were up 5.27% at 14.48p.