Lithium Universe Limited has taken a significant step forward in its North American lithium refining ambitions by confirming the suitability of a Brownsville, Texas site for its second refinery. This move supports a binational platform designed to meet surging demand for battery-grade lithium carbonate.
- Brownsville site confirmed suitable for second lithium refinery
- Plan to replicate proven Bécancour refinery design reduces risk and cost
- Project aligns with U.S. critical minerals policy and benefits from IRA incentives
- Supports supply chain resilience with spodumene feedstock from multiple regions
- Site also accommodates innovative PV solar panel silver recycling project
Strategic Expansion in North America
Lithium Universe Limited (ASX, LU7) has advanced its strategy to establish a second lithium refinery in the United States, following a detailed site visit to Brownsville, Texas. The visit confirmed the location’s potential to host a full-scale replication of the company’s flagship Bécancour Lithium Refinery Project in Québec, marking a key milestone in building a binational lithium refining platform across North America.
This platform aims to close the so-called "Lithium Conversion Gap" by providing much-needed processing capacity for battery-grade lithium carbonate, a critical component in electric vehicle batteries and energy storage systems. With demand forecast to outstrip existing North American refining capabilities, LU7’s approach to deploy multiple, modular refinery trains is designed to meet this growing market efficiently.
Site Suitability and Logistics Advantages
The Brownsville site offers several strategic advantages, including deep-water port access, multimodal transport corridors, and robust utilities infrastructure. These features are essential for handling spodumene concentrate imports from diverse sources such as Brazil, Africa, and the U.S., and for distributing lithium carbonate to gigafactories across the U.S. and Mexico. The site’s logistics flexibility reduces supply chain risks and supports the company’s goal of resilient, scalable operations.
Moreover, the region’s pro-industry policies, competitive labour market, and alignment with U.S. federal critical minerals initiatives; including incentives under the Inflation Reduction Act; create a favourable environment for lithium refining investments. LU7’s engagement with local stakeholders during the visit highlighted opportunities for workforce training and long-term collaboration, further strengthening the project’s foundation.
Engineering Replication and Risk Mitigation
A core element of LU7’s strategy is to replicate the proven engineering design from its Bécancour refinery. This “copy-and-paste” approach leverages validated process flows, equipment, and supplier relationships, enabling significant reductions in engineering capital expenditure, construction timelines, and operational risks. The Brownsville refinery will incorporate minor regional adaptations, such as hurricane resilience measures, but largely mirror the Québec design, facilitating predictable performance and financing readiness.
Complementary Silver Recycling Initiative
In addition to lithium refining, the Brownsville site offers space for LU7’s innovative PV Recycling Silver Extraction Project. This initiative utilises breakthrough technologies developed with Macquarie University to recover silver from end-of-life photovoltaic solar panels efficiently and sustainably. Given silver’s critical role in solar panels and electronics, this project complements the lithium refinery by contributing to circular clean-energy supply chains and addressing rising industrial demand for silver.
Next Steps and Market Positioning
Following the successful site assessment, Lithium Universe plans to proceed with a formal land lease application and initiate a scoping study for an 18,270 tonnes per annum lithium carbonate refinery at Brownsville. This development will run in parallel with the Bécancour project, positioning LU7 as a leading supplier of battery-grade lithium carbonate in North America. Executive Chairman Iggy Tan emphasised the strategic value of the U.S. site in complementing the Québec refinery and advancing the company’s vision of a robust, binational lithium refining network.
Bottom Line?
With Brownsville validated as a strategic hub, Lithium Universe is poised to accelerate its North American lithium refining footprint amid rising EV battery demand.
Questions in the middle?
- What is the expected timeline for final investment decisions and refinery commissioning at Brownsville?
- How will LU7 secure feedstock supply contracts from Brazil, Africa, and the U.S. to support the new refinery?
- What financing arrangements or partnerships will underpin the Brownsville project’s development?