Jindalee Resources Ltd (ASX:JRL) has teamed up with major Korean lithium producer and NYSE-lister POSCO Holdings to investigate the McDermitt Lithium Project in Oregon, US.
Thanks to a binding memorandum of understanding (MoU), both parties have agreed to kick off joint metallurgical research, designed to optimise the ore processing flowsheet and get the most out of McDermitt’s 13.3 million tonnes lithium resource.
POSCO will exclusively fund test-work activities, which will use a large composite sample, focus on three separate metallurgical processes and cost around A$2 million to complete.
This isn’t the first time Jindalee and POSCO have worked together: in 2022, the companies conducted initial analysis on a small-scale sample, confirming McDermitt’s processing potential.
Accelerating McDermitt’s development
POSCO has an extensive resume: beyond its work as a Korean conglomerate and lithium producer, it also supplies cathode active materials to major US automaker General Motors.
Jindalee chairman Justin Mannolini said his company was delighted to reach the MoU with a multi-faceted partner.
“This arrangement will allow Jindalee to further examine the potential of the McDermitt Lithium Project in Oregon, a very large and strategically important domestic source of lithium for the US battery industry,” he explained.
“We look forward to receiving the results from POSCO’s test work as part of our efforts to accelerate development of McDermitt through 2023.”
Domestic supply opportunity
Jindalee brought McDermitt into the fold back in 2018, attracted to the project’s large-scale, long-life lithium potential.
Findings from an initial four-hole drill program became the impetus for a large-scale exploration target, which has since upscaled to a 13.3-million-tonne lithium resource.
As McDermitt continues to grow, Jindalee is developing an asset that could one day support the burgeoning US battery industry.
The States currently imports most of its lithium for li-ion battery construction, but Jindalee is focused on bringing a robust domestic alternative on stream to support nearby factories.
Location of Jindalee’s lithium projects and US battery factories (existing & proposed).