Lithium Universe secures prime land in Quebec

  • Lithium Universe (ASX:LU7) secures an industrial site in Canada to build a lithium refinery
  • The company expects this project to form part of a predicted surge in battery manufacturing for North America
  • LU7 is intending to leverage a strategic decrease in reliance on Chinese suppliers from the Canadian government
  • Shares last traded at 2.2 cents

Lithium Universe (ASX:LU7) has shrugged off macro headwinds in the lithium sector, marching ahead with its strategy to build out a lithium refinery by securing the industrial land to do so.

The market is liking the news with shares witnessing a jump in the first hour of trades.

Located in Quebec’s Bécancour Waterfront Industrial Park (BWIP), the Canada-based asset is a linchpin in LU7’s long-term vision.

And shareholders needn’t look for a catch between the lines: the company says it doesn’t need to raise funds to acquire the land.

Notably, the BWIP lends itself to spodumene import facilities and ultimately has the parcel size to host three 16,000 tonnes per annum (tpa) lithium carbonate downstream processing plants.

“Québec’s low-cost hydroelectricity, high environmental standards, and educated workforce, as well as the location’s logistical advantages, including a deepwater port and easy rail access to the rest of North America, were key factors in the decision,” LU7 chief Iggy Tan said.

“One of the reasons we like the site is that it gives us the opportunity to expand. We have the ability to do that if necessary.”

What’s more – the BWIP is located within 1000 metres of an EV cathode factory jointly owned by General Motors and Korean giant POSCO.

This can only help bolster the overarching vision for the Quebec processing hub which ultimately intends to assist Canada (well, all of North America) reduce its reliance on China for downstream battery-ready lithium product.

“Chinese companies dominate the global market for lithium converters and refining capacity,” the company wrote.

“Similarly, Canada, acknowledging the significance of energy security, has intensified efforts to reduce Chinese involvement in the sector.”

Targeting what it calls the “conversion gap,” LU7 is in part banking that its Quebec hub success will be facilitated by the nature of such projects being an apparent rarity in the region.

The company sees the east coast of North America encountering a “surge in battery manufacturing” by 2028, with up to 900GW of capacity being built out a tangible possibility.

Shares last traded at 2.2 cents.

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