- Avalon Advanced Materials (TSX:AVL) produced clean lithium hydroxide using Metso’s proprietary Alkaline Leach Process, laying a foundational step towards a sustainable processing solution in North America’s lithium supply chain
- Avalon Advanced Materials is a Canadian critical minerals company focused on vertically integrating Ontario’s lithium supply chain
- The critical minerals stock is up by 20 per cent on the news trading at C$0.06 as of 9:43 am ET
Avalon Advanced Materials (TSX:AVL), market capitalization C$38.67 million, produced clean lithium hydroxide using Metso’s proprietary Alkaline Leach Process (ALP), laying a foundational step towards a sustainable processing solution in North America’s lithium supply chain.
The lithium hydroxide, a key component of cathode material in lithium-ion-batteries, was produced at Avalon’s Thunder Bay Lithium Processing Facility in Ontario, achieving high recovery and purity levels, as well as generating an analcime by-product of value in the cement business for its ability to replace conventional additives and reduce CO2 emissions.
Testing to date indicates that production will need up to 60 per cent less water and make a smaller carbon footprint compared to conventional acid leach or roasting technology, achieving a near-zero discharge.
Additionally, unlike legacy processes, Metso’s ALP requires no sulfuric acid or sulfate reagents, avoiding the production of corrosive effluents and reducing environmental risk.
The successful result aligns Avalon with Canada’s Critical Minerals Strategy, which includes a concerted effort to secure the country’s lithium supply chain against an expected shortage in refining capacity. According to Precedence Research, the global lithium hydroxide market will grow from US$29.15 billion in 2025 to US$106.22 billion in 2034, driven by rising demand for renewable energy technologies.
Avalon will now turn its attention to engineering scale-up, process optimization and commercialization for both analcime and lithium hydroxide products.
Management commentary
“This is an exciting breakthrough and transformational for Avalon,” Scott Monteith, chief executive officer of Avalon Advanced Materials, said in Thursday’s news release. “Successfully producing lithium hydroxide using Metso’s Alkaline Leach Process demonstrates that clean, efficient and scalable lithium processing can be achieved right here in Canada. This innovation supports Avalon’s commitment to building a truly sustainable battery materials supply chain for North America. Our team is most encouraged by these results, as they are a clear indication of the achievable final product once in commercial production. Importantly, this process sets a new benchmark for environmental responsibility across the industry, achieving near-zero discharge – a significant advancement over existing practices.”
“The environmental advantages of Metso’s Alkaline Leach Process are truly transformative. By eliminating strong acids and sulfates, the process produces neutral, stable residues, reduces water and energy consumption, and minimizes the overall environmental footprint,” added Mark N.J. Ashcroft, P.Eng, strategic consultant to Avalon Advanced Materials’ proposed Lake Superior lithium facility in Thunder Bay, which is slated to be Ontario’s first midstream lithium hydroxide processing facility. “It represents a step change towards responsible resource conversion aligned with the principles of circular mineral processing.”
About Avalon Advanced Materials
Avalon Advanced Materials is a Canadian critical minerals company focused on vertically integrating Ontario’s lithium supply chain. The company is also advancing the Nechalacho rare earths and zirconium project in the Northwest Territories, whose light and heavy rare earth elements, yttrium, zirconium, tantalum and niobium resource is positioned to fuel advanced technology supply chains across the communications, defense, clean tech and energy sectors.
Avalon Advanced Materials stock (TSX:AVL) is up by 20 per cent on the news trading at C$0.06 as of 9:43 am ET. The stock is unchanged year-over-year and down by 25 per cent since 2020.
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