Lithium Universe teams up with Quebec supply company

A partnership with supply company Servitank is part of Lithium Universe’s wider vision for the Bécancour lithium refinery in Quebec.

Lithium Universe has partnered with Servitank for chemical products logistics related to Bécancour lithium refinery operations. Pic: Getty Images

• Lithium Universe signs MoU for a logistics partnership with Servitank

• Servitank is capable of sourcing multiple process chemicals

• Together, both parties aim to bridge the lithium conversion gap and ensure a robust and responsible supply chain in North America

Special Report: Lithium Universe has signed a memorandum of understanding (MoU) with chemical logistics company Servitank, enhancing the operational efficiency of both companies in the rapidly growing lithium sector.

As part of the agreement, Servitank will seek to leverage its expertise in supply chain management and multimodal logistics to support Lithium Universe's (ASX:LU7)development of the Bécancour lithium refinery.

While this MoU outlines the framework for partnership, it remains a non-binding document, paving the way for detailed discussions and the eventual drafting of definitive agreements.

Servitank is currently evaluating various storage solutions at the Bécancour Port terminal, which may facilitate the efficient trucking logistics required to deliver key liquid chemicals directly to Lithium Universe’s operational site.

It will also investigate the process of constructing dedicated storage tanks for specific process reagents, positioning itself to supply critical chemicals directly to Lithium Universe and others within the Bécancour Industrial Park.

Another element of the MoU sees Servitank assisting with procurement options within the local areas for other dry bulk reagents to meet Lithium Universe’s specific operational requirements.

LU7’s early entry advantage

LU7’s Bécancour refinery is projected to produce 18,270tpa of green battery-grade lithium carbonate and would help close a lithium conversion gap in North America, which has millions of tonnes of lithium carbonate equivalent resources but a yawning chasm when it comes to chemical conversion capacity.

Conversion to a lithium chemical is an essential step to take mined product and prepare it for lithium-ion battery production, but one almost entirely completed currently in China.

That’s an issue for US, Canadian and EU carmakers in need of domestic or friendly sources of supply for their emerging EV markets.

A quick turnaround on feasibility studies for the proposed processing plant will enable LU7 to make the most of this opportunity.

Bécancour will use proven operating technology from the Jiangsu refinery in China, itself designed and constructed following strict Australian and international standards to mitigate technology risks.

LU7 is currently finalising capital cost estimates for the DFS.

While major engineering activities such as finalisation of the plant layout and key tasks like creating the main power distribution single-line diagram have been completed, the company still needs to obtain the remaining fixed priced quotations from vendors.

Secondary product management

Both parties will investigate storage opportunities and potential partnerships with cement companies within sister companies of Servitank in Groupe Somavrac’s client base.

This investigation aims to effectively utilise Lithium Universe's alumina silicate by-products, enhancing sustainability and resource management.

The two companies will also assess storage requirements for sodium sulphate, considering its potential placement within the pulp and paper industry in North America.

Servitank’s facilities in Bécancour will play a crucial role in the storage and transportation of spodumene.

The partnership will ensure the logistics and handling of spodumene sourced from transatlantic suppliers is managed efficiently.

Servitank’s sister company, Somavrac, will also provide access to advanced bagging machinery and bulk storage solutions at its Trois-Rivières location, optimising operational efficiency and supporting the needs of the refinery.

A ‘significant step’

“This partnership with Servitank is a significant step towards realising our vision for the Bécancour lithium refinery,” LU7 chairman Iggy Tan said.

“We are particularly focused on identifying a single logistic supplier capable of supporting us in sourcing most of our chemical reagents, which will simplify our supply chain and enhance operational efficiency.

“Together, we aim to bridge the lithium conversion gap and ensure a robust and responsible supply chain.”

This article was developed in collaboration with Lithium Universe, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Lithium Universe teams up with Quebec supply company