NickelSearch Ltd (ASX:NIS)’s strategic partner Alpha Fine Chemicals (AFC) is advancing plans to build and operate a nickel sulphate plant in Rayong Province, Thailand, and has passed a funding milestone.
AFC is initially targeting the annual production of 40,000 tonnes of high purity nickel sulphate crystals to supply the lithium-ion battery market for electric vehicles and stationary storage.
To fund the development, AFC is working to secure a funding package of about US$100 million from a consortium of high calibre and globally significant investors, including German KfW-IPEX Bank, Traxys Group, CIGP and a ‘Tier 1 miner’.
Moving forward, this strategic relationship confirms a pathway to market for potential MHP (mixed hydroxide precipitate) from NickelSearch’s Carlingup Nickel Sulphide Project.
“Smallest environmental footprints”
NickelSearch managing director Nicole Duncan said: “The automotive industry is paying close attention to the environmental and social integrity of the raw material supply chain.
“The combination of NIS’s proposed bioleaching for Carlingup ores together with AFC’s CMN Processing Technology is intended to facilitate delivery of nickel sulphate into the lithium-ion battery market with one of the smallest environmental footprints.”
Growing market
With several new battery mega-factories being announced, AFC will be well-positioned to capture a share of this growing market opportunity by providing sustainably produced nickel sulphate together with by-products in cobalt carbonate and magnesium sulphate using its proprietary CMN Processing Technology.
The CMN Process allows AFC to refine various intermediate nickel products, such as Black Mass from the recycling of lithium-Ion batteries and MHP, while it is also exploring additional feed options.
It will also allow AFC’s Thailand plant to produce high-purity nickel sulphate with the lowest environmental impact to serve the growing EV market.
Potential synergies
This is an important development for NickelSearch because it is through AFC that the company’s Carlingup Nickel Sulphide Project is integrated into the lithium-ion battery supply chain.
AFC has a right of first refusal on the potential intermediate MHP product from Carlingup to supply feed to the proposed nickel sulphate plant.
Further, it also has a first right to purchase product from Carlingup on standard commercial terms.