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Allkem Limited (TSX:AKE) successfully produces first lithium hydroxide product

Mining
TSX:AKE
15 November 2022 13:30 (EDT)

Source: Allkem Limited.

Allkem Limited (AKE) has produced lithium hydroxide together with Toyota Tsusho Corporation (TTC) at Naraha.

The Naraha lithium hydroxide plant in Japan has produced its first lithium hydroxide chemical product. While TTC manages the Naraha operation, Allkem has a 75 percent economic interest in Naraha.

TTC and contractor Veolia Jenets completed construction earlier this year, and commissioning activities have been progressing utilizing technical-grade lithium carbonate feedstock from Olaroz. The first production occurred less than a month ago, and the plant continues operation.

With the first lithium hydroxide production achieved, the focus will be on progressively increasing the product quality and consistency to reach the nameplate capacity of 10ktpa.

Progressive quality improvement to a battery-grade product is targeted for qualification by customers. It is expected that the majority of off-spec production during the next 12 months will be sold to chemical re-processors.

Allkem CEO and Managing Director Martin Perez de Solay commented on the news.

“With our partner TTC, we have achieved a major milestone in successfully producing lithium hydroxide, further delivering our vertical integration strategy and the diversification of our product offering. This facility is the first of its kind in the region, and we have proven the technology of converting Olaroz technical-grade lithium carbonate feedstock into lithium hydroxide. We have a first mover’s advantage and will ultimately be supplying the high-end battery and cathode market.”

TTC Chief Operating Officer for Metal Division, Masaharu Katayama, says:

“It is with great pleasure that we announce the completion of construction and first production at Naraha. I want to thank all of the Toyotsu Lithium Corporation team, and local and provincial authorities whose dedication has ensured this successful outcome. Finally, I want to acknowledge the Naraha operation is another valuable addition to the enduring and successful partnership with Allkem that started over a decade ago at Olaroz.”

The image below shows the finished Lithium hydroxide product at the Naraha operating facility.

Lithium Hydroxide Product
Source: Allkem Limited.

Allkem Limited (AKE) is an industrial chemical and mineral exploration company.

Allkem Limited (AKE) is trading at C$13.05 as of 1:20pm ET.


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