Lithium Universe Limited (ASX:LU7) Preliminary Feasibility Study Results

Lithium Universe Limited (ASX:LU7) has announced the results of its Preliminary Feasibility Study (PFS) for the Bécancour Lithium Carbonate Refinery in Québec, Canada. The study confirms the viability of a strong lithium conversion project, even within a below-average pricing environment. The company plans to build a reliable, low-risk lithium conversion refinery with an annual capacity of up to 18,270 tonnes, utilizing proven expertise from the Jiangsu processing model.

Executive Commentary on Strategic Positioning and Market Opportunities

The project demonstrates strong financial viability with a pre-tax Net Present Value (NPV) of approximately US$779 million, an Internal Rate of Return (IRR) of around 23.5%, and a payback period of 3.5 years, even with conservative price assumptions. We are strategically positioning ourselves to address the lack of operational converters in North America and the growing demand for lithium conversion in the region. Québec's advantages in terms of low-cost, green energy and proximity to major electric vehicle and energy storage manufacturers make it an ideal location for our refinery.

Strategic Outlook and Project Progression

Lithium Universe Limited's Bécancour Lithium Refinery project in Quebec, Canada, aims to bridge the 'Lithium Conversion Gap' in North America. The company plans to develop a mine-to-battery-grade lithium carbonate strategy, contributing to the local economy and addressing the growing demand for lithium conversion. With strong financial viability, a counter-cyclical strategy, and a focus on strategic positioning, the company is actively engaging with stakeholders, seeking financing, and ensuring regulatory compliance as it progresses towards the Definitive Feasibility Study (DFS) phase.