Key commercial terms agreed
for a Joint Venture

Following award of A$20 million Federal Government
Modern Manufacturing Initiative Grant

Audrey Barucchi \ June 1, 2022

Pilbara Minerals and Calix have entered into an amended and binding Memorandum of Understanding, supporting the development of a “mid-stream” lithium chemicals opportunity at Pilgangoora.

KEY POINTS

  • Following the award of a $20 million grant from the Australian Government under the Modern Manufacturing Initiative (MMI) Manufacturing Translation Stream, Pilbara Minerals and Calix have agreed key commercial terms for a joint venture in an updated binding Memorandum of Understanding (MoU).
  • The MoU contemplates the JV will be established for the potential development of a demonstration plant at the Pilgangoora Project with the aim of producing lithium salts for global distribution via an innovative midstream “value added” refining process utilising Calix’s patented calcination technology, as well as for the potential future commercialisation of the
  • Upon formation of the JV, participating interests will be 55% Pilbara Minerals and 45% Calix with each party funding their share of operating and capital costs and licensing their technology into the JV.
  • Calix will have a 10% in-kind contribution recognised on budgeted estimated construction costs of the Demonstration Plant in return for Calix providing an exclusive, worldwide, royalty free licence for its innovative calciner technology to the Joint Venture for lithium processing applications.

Execution of the binding MoU with Calix further cements the great relationship developing between the two companies. Our common goal – to further decarbonise lithium raw material supply chains, is both an important overall objective and a key deliverable for the value in future mid-stream products.

Pilbara Minerals’ Managing Director and CEO, Ken Brinsden.

NEXT STEPS

  • Parties intend to finalise and execute the formal Joint Venture Agreement in Q3 2022;
  • Market Samples – a continuous Pilot Testwork Programme to produce lithium phosphate samples for a detailed market engagement program will be undertaken to help inform the project of the likely marketability and selling price outcomes of the lithium phosphate salt product being produced;
  • FEED Studies – progression of FEED Studies will be carried out to support a final investment decision to move forward with developing the Demonstration Plant and following it successful validation for the commercialisation of the technology across industry globally; and
  • MMI grant execution – the Parties will liaise with the Australian Government to finalise the execution of the MMI grant funding.

 

“Our work with Pilbara Minerals continues on great footing with key terms now agreed on the JV to develop, demonstrate, and ultimately commercialise, a new, low carbon lithium salt production process. I look forward to the next phases of the project, namely execution of a formal JV agreement during Q3 2022, and front-end engineering and design leading to a final investment decision in early 2023”.

Calix Managing Director and CEO, Phil Hodgson.

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