Calix and Pilbara Minerals have announced that they will defer any construction works not currently under contract for the Mid-Stream Demonstration Plant Project, citing current market conditions.
The project – which aims to produce a low-carbon energy intensity lithium salt and is being developed in a joint venture between Calix and Pilbara Minerals – remains on budget and is 60 per cent complete as of the end of September 2024.
Construction works in progress will be completed, after which the project will be paused until market conditions are supportive or further government support for the continuation of the project can be secured.
Both Pilbara Minerals and Calix have said that they remain committed to the progression of the Demonstration Plant Project and continue to work with various government bodies in relation to further funding options.
The joint venture remains committed to the commercialisation of the Mid-Stream technology to the broader lithium processing industry and will continue to pursue options to scale and deploy the technology at other global lithium assets.
Calix CEO and Managing Director, Phil Hodgson, said that despite current conditions requiring a pause in construction of the project, the excellent progress to date means it can rapidly recommence and progress to the commissioning phase once conditions allow.
“We will update the market again on the status of Pilbara Minerals to demonstrate the exciting potential of electric calcination for lower cost and lower carbon lithium processing for the global lithium industry,” Mr Hodgson said.
Pilbara Minerals CEO and Managing Director, Dale Henderson, said that given the current lithium price environment, this pause enables the joint venture to time expenditure with improved market conditions.
“We remain fully supportive of the Mid-Stream strategy and our joint venture, recognising the project’s potential to transform the lithium supply chain through lower emissions and value-added processing,” Mr Henderson said.
“Our commitment to our joint venture with Calix remains. Together with Calix we will assess resuming the project as market conditions improve or further government support is received.”