Pilbara Minerals has signed a memorandum of understanding (MoU) with Sydney-based technology company Calix to develop a midstream lithium chemicals refinery in Western Australia.

Under the MoU, the companies have agreed to undertake a scoping study to assess a new refining process utilising Calix’s calcination technology.

The refining process is intended at producing a concentrated lithium salt from the Pilgangoora project for downstream lithium raw material demand.

Owned and operated by Pilbara Minerals, the Pilgangoora deposit is one of the world’s largest lithium resources. It is  located in Western Australia’s resource-rich Pilbara region.

The scoping study will be carried out until late 2021.

If the study is positive, Pilbara Minerals and Calix intend to form a joint venture to build a demonstration facility at Pilgangoora.

The joint venture will begin the development of the facility with a definitive feasibility study (DFS). The facility is expected to have a capacity of up to several thousand tonnes of lithium salt annual production capacity.

Utilising renewable energy, the proposed demonstration facility will process fine, lower-grade spodumene concentrate from the Pilgangoora project to create a low carbon, concentrated lithium salt.

The produced lithium salt is further refined by others into lithium battery materials.

The joint venture will also be responsible for exporting of the product from the demonstration facility.

Pilbara Minerals stated: “The development could cornerstone a full battery production supply chain in Australia.

“To achieve this, Pilbara Minerals and Calix have agreed that once the demonstration facility has established the process and the market, the process will be marketed by the JV to Pilbara Minerals and other spodumene producers under licensing arrangements.

“The project is in strong alignment with Government strategies to on-shore processing and manufacturing, more sustainable mining and processing, and critical minerals strategies for battery materials.”

In October last year, Pilbara Minerals announced the acquisition of Altura Lithium Project, which is owned and operated by Altura Lithium Operations (ALO), for around $175m.

ALO is a wholly owned subsidiary of Altura Mining.