Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has updated the market on its lithium-centric spinout’s proposed lithium hydroxide plant.
NASDAQ-listed Snow Lake Resources (doing business as Snow Lake Lithium) has commissioned a scoping study that considers erecting plant in South Manitoba, Canada.
The study marks the next step in the company’s ambition to secure domestic lithium hydroxide supply to the North American electric vehicle industry.
Situated just 700 kilometres from Snow Lake Lithium’s mine, the proposed plant would be ideally located with direct access to North American automotive manufacturers by air, rail and road.
Snow Lake has teamed with Manitoba Province, CentrePort and Primero to deliver the scoping study.
“A remarkable investment”
Nova CEO Christopher Gerteisen said: “We are very pleased by Snow Lake’s progress and performance, and it appears that the market is recognising the strides that they have made in advancing the Thompson Brothers Lithium Project.
“Snow Lake has been a remarkable investment for us and we see the next 12 months as being an exciting and pivotal time for Snow Lake, as it delivers on its key value-creating milestones of advancing and expanding its resource, completing its economic and downstream processing studies.”
Manitoba positioned to electrify North America
Welcoming the study, Manitoba’s premier, the Hon. Heather Stefanson, said: “Manitoba has the opportunity to be at the vanguard of the global initiative of achieving a carbon-neutral economy.
With our bountiful natural resources and clean energy, we are in the perfect position to leverage the province into a strategic role in the North American electrification supply chain.
Snow Lake Lithium’s vision for developing a green ecosystem in our province will provide Manitoba with the platform for creating jobs and value with a focus on the future.
“With demand for electric vehicles growing rapidly, the global automotive and energy storage industries will be competing to access raw materials, especially lithium, that is a crucial component of batteries.
“The addition of a lithium hydroxide plant will enable the seamless integration of the domestic supply of this critical resource to the North America electric vehicle industry.”
“Critical opportunity”
Snow Lake Lithium CEO Philip Gross said of the development: “This is a critical opportunity for Manitoba to play a significant role in building out a full ecosystem to support the electrification of the North American automobile fleet.
“Now more than ever, we must commit ourselves to securing our domestic critical raw materials that will protect our jobs from geopolitical shocks and ensure the uninterrupted growth of our industries as we transition to a post-carbon economy.
“Lithium hydroxide is the foundation of the EV battery technology and, as of today, North America has no production on which to rely for the substantial industry commitments to electrification.
“Snow Lake is committed to being a part of the solution while at the same time ensuring the highest standards of carbon-neutral and fully renewable lithium.
Location, location, location
For Snow Lake, the proposed lithium hydroxide hub’s locality and access to infrastructure is paramount.
“The plant’s proposed location is CentrePort Canada, North America’s largest trimodal inland port and Foreign Trade Zone,” Gross explained.
“CentrePort Canada connects to major national and international trade gateways as well as being the only inland port in Canada with direct access to trimodal transportation – truck, rail and air cargo.
“This unique location means that Snow Lake Lithium is connected to all the major auto manufacturers across North America, reducing supply chain costs and emissions as well as delivering a secure and seamless lithium supply chain from rock to road.”
Next steps
Snow Lake has contracted Primero to deliver the scoping study, which is scheduled to kick off this month and conclude in Spring next year.
Primero’s general manager Americas, Alexandre Roy, said: “The roll out of lithium conversion facilities in North America is the first step towards establishing a domestic supply chain capable of supporting the electrification process that is currently underway.
“We look forward to working with Snow Lake and the Government of Manitoba in designing and developing this exciting project.”
In parallel with the scoping study, Snow Lake will continue its engineering evaluation and drilling programme across its Thompson Brothers Lithium Project site, with the expectation that the mine will transition to commercial production in late 2024.