Century Lithium Moves Forward with Plans for Chlor-Alkali Plant Development

Century Lithium Corp. (TSXV: LCE) (OTCQX: CYDVF) (Frankfurt: C1Z), an advanced-stage lithium development firm, has recently announced its ambitious plans to establish a chlor-alkali plant in the Western United States. This initiative is not merely a standalone project; it is pivotal for supporting the company’s ongoing Angel Island Lithium Project located in Esmeralda County, Nevada.

The Importance of the Chlor-Alkali Plant

The proposed chlor-alkali plant is envisioned as a crucial component of the critical minerals supply chain. Bill Willoughby, Century Lithium's President and CEO, emphasized that chlor-alkali products will play an essential role in the processing of lithium and battery materials, as well as in the separation of rare earth elements and the production of precious metals.

The proposed facility is designed to produce chlorine, hydrochloric acid, and sodium hydroxide from basic raw materials including sodium chloride, water, and electricity. The target commercial production rate is set at 300 short tons per day (st/d) of chlorine, with the potential to double production capacity based on regional demand and the supply needs of the Angel Island project.

Market Demand and Offtake Arrangements

Century Lithium has already made significant strides in securing its market position. The company secured eight non-binding Memoranda of Understanding (MOU) with various industrial partners for the offtake of its chlor-alkali products. This could potentially cover the entire initial production output of the chlor-alkali plant.

By establishing these agreements, Century Lithium is positioning itself favorably in a landscape where demand for chlor-alkali products continues to grow. The plant is expected to generate substantial revenue independently while simultaneously minimizing any supply risks related to reagents necessary for the Angel Island project.

Site Selection and Economic Considerations

The site selection process for the chlor-alkali plant has been thorough, considering critical factors such as proximity to infrastructure and resources, including power and transportation. Century Lithium is currently evaluating potential sites in both Nevada and Utah. The emphasis on infrastructure readiness is key to ensuring smooth operational development.

Importantly, this proposed development does not alter the existing plans for the Angel Island project. The chlor-alkali plant, while a separate facility, is seen as a financially self-sustaining step that aligns with the company’s overall lithium strategy rather than detracting from it. All economic assumptions regarding the plant are based on commercial sales to third parties, separate from any financial benefits that might arise from the Angel Island project itself.

Financing the Chlor-Alkali Plant

To fund the chlor-alkali plant, Century Lithium is exploring a non-dilutive financing structure at the project level. They are considering a blend of vendor financing, institutional preferred equity, and support from offtake partners, along with potential participation from U.S. government financing programs designed to bolster domestic critical minerals production. This lays the groundwork for a capital structure that aims to minimize shareholder dilution while advancing the project.

Due diligence for the chlor-alkali plant is currently underway, focusing on necessary negotiations, funding arrangements, power supply agreements, and more. As the company moves forward, it plans to engage qualified engineering, procurement, and construction contractors to kick-start the front-end engineering and design (FEED) phase.

Conclusion

The establishment of the chlor-alkali plant marks a significant development for Century Lithium Corp. and its Angel Island Lithium Project. This strategic move is set to enhance the reliability and efficiency of the company’s operations while simultaneously supporting the broader critical minerals supply chain in the Western United States. As Century Lithium continues through the permitting processes and site selection, the market will undoubtedly be watching closely to see how this ambitious project unfolds.

For more information on Century Lithium Corp. and its initiatives, you can visit their official website at centurylithium.com.