Battery Anode Plant Site Selection Raises Regulatory and Community Questions for Metals Australia
Metals Australia Ltd reports key milestones in its Lac Carheil Graphite Project, achieving battery-grade spherical graphite purity and selecting Sept-Îles as the preferred site for its Battery Anode Material plant.
- Battery-grade spherical graphite purified to 99.99% fixed carbon with 72% yield
- Preferred Battery Anode Material plant site selected at Sept-Îles, Quebec
- Project Economic Assessment underway with modular plant design targeting 75ktpa capacity
- Upstream Mineral Resource Estimate expanded to 50 Mt at 10.2% total graphitic carbon
- Ongoing electrochemical testing and community engagement in progress
Battery-Grade Graphite Breakthrough
Metals Australia Ltd, through its Canadian subsidiary Northern Resources Inc., has made significant progress on the Lac Carheil Graphite Project in Quebec. Recent metallurgical test work has successfully produced spherical graphite with an exceptional fixed carbon purity of 99.99%, surpassing the lithium-ion battery industry standard of 99.95%. Moreover, the process achieved a 72% yield in converting graphite concentrate into spherical graphite products, well above the typical industry recovery rate of around 50%.
This high-purity graphite is critical for electric vehicle (EV) battery anodes, and the company has developed a purification process that notably avoids the use of hydrofluoric acid, enhancing environmental and operational safety.
Preferred Plant Location and Modular Design
Metals Australia has provisionally selected Sept-Îles, Quebec, as the preferred location for its Battery Anode Material plant. Sept-Îles offers strategic advantages including deep-water port facilities, excellent rail connectivity to the upstream project site near Labrador City, and access to abundant industrial land. The location is well positioned to serve both North American and European battery markets.
The plant design, currently undergoing a Project Economic Assessment (PEA) led by Dorfner Anzaplan in the UK, features a modular approach with three production trains, each capable of processing 25,000 tonnes per annum. This scalable design allows for staged development and future expansion aligned with market demand.
Upstream Resource and Project Development
The upstream Lac Carheil project has seen a substantial resource upgrade, now estimated at 50 million tonnes grading 10.2% total graphitic carbon, tripling the initial resource base. A Pre-Feasibility Study (PFS) is underway, focusing on open-pit mining optimization and infrastructure design, with results expected in early 2026. The company is also advancing environmental and social impact assessments, emphasizing community engagement and First Nations participation.
Ongoing Testing and Market Positioning
Further electrochemical testing of the spherical graphite, including specialist coating applications conducted in China and Germany, aims to validate the product's performance in lithium-ion battery anodes. These tests will benchmark Metals Australia's product against market standards, informing pricing and marketing strategies.
Additionally, the company is pursuing Canadian government funding and tax incentives, including the Clean Technology Manufacturing Investment Tax Credit, which could significantly offset capital expenditures for both upstream and downstream facilities.
Community and Regulatory Engagement
Metals Australia is actively engaging with local communities and stakeholders in Sept-Îles and surrounding regions to address social acceptability and environmental concerns. The project emphasizes minimal waste production and sustainable practices, with no tailings generated in the Battery Anode Material plant and byproducts marketed for metallurgical uses.
Power allocation discussions with Quebec Hydro are ongoing, a critical factor for the plant's viability given the region's reliance on hydroelectric power.
Bottom Line?
With key technical milestones achieved and a strategic plant location chosen, Metals Australia is poised to advance its battery-grade graphite project into the next phase, but market and regulatory hurdles remain to be navigated.
Questions in the middle?
- How will the upcoming electrochemical test results impact the commercial viability of the spherical graphite products?
- What are the timelines and risks associated with securing power allocation from Quebec Hydro for the plant?
- How will community feedback and environmental assessments influence the final plant site approval and project schedule?
