Lithium Universe Limited (ASX: LU7) is pushing ahead with its second lithium refinery in Texas and a silver recycling plant amid a strong lithium price rebound. The company secured a decade-long spodumene supply deal to underpin its flagship Canadian refinery and appointed Iggy Tan as full-time CEO to steer growth.
- Port of Brownsville confirmed for second US lithium refinery
- 10-year binding spodumene supply agreement with Norah Mining
- Engineering phase started for silver extraction PV recycling plant
- Bécancour refinery project economics strengthened by lithium price recovery
- Management reshuffle appoints Iggy Tan full-time CEO
Second Lithium Refinery Site Secured in Texas
Lithium Universe has confirmed the Port of Brownsville, Texas, as the site for its second lithium refinery in the US, advancing its bi-national refining strategy alongside the Bécancour Lithium Refinery in Québec. The port’s deep-water access, proximity to the US-Mexico border, and multimodal transport infrastructure make it a strategic logistics hub. The company highlighted ongoing channel upgrades and competitive land and labour costs as key advantages over coastal alternatives.
This site offers the potential to replicate the Bécancour refinery’s proven design, aiming to reduce capital costs and construction timelines. LU7 is now proceeding with the land lease application and a Scoping Study to define project scale and integration with North American battery supply chains. The site also accommodates the planned photovoltaic (PV) recycling silver extraction project, signaling LU7’s intent to diversify its critical minerals footprint.
Bécancour Refinery Bolstered by Lithium Price Rally
LU7’s flagship Bécancour Lithium Refinery is benefiting from a sharp lithium price recovery, with battery-grade lithium carbonate prices doubling to around US$24,000 per tonne, well above the project’s Definitive Feasibility Study (DFS) forecast of US$20,970 per tonne. Completed during a market trough, the DFS outlined a robust project with a pre-tax net present value of US$718 million and a 21% internal rate of return.
With market confidence returning, LU7 has re-engaged stakeholders, including spodumene suppliers, customers, and financiers. The company secured a binding 10-year offtake agreement for 80,000 tonnes per annum of spodumene concentrate from Norah Mining Limited’s Nigerian project, underpinning feedstock supply for Bécancour. This deal aligns with LU7’s counter-cyclical approach to project development and supports Canadian government efforts to onshore critical minerals refining.
This supply agreement also allows LU7 to trade spodumene concentrate on the open market before refinery start-up, potentially generating early revenue streams. The company retains full ownership of the lithium carbonate produced, emphasizing control over its downstream product.
Silver Recycling Plant Engineering Underway
In parallel, Lithium Universe is commercialising its innovative silver extraction technology from photovoltaic panel waste. The company has commenced the engineering phase for a modular demonstration plant combining Microwave Joule Heating Technology (MJHT) for panel delamination and Jet Electrochemical Silver Extraction (JESE) for high-purity silver recovery.
The silver price reached all-time highs during the quarter, driven by structural supply-demand imbalances rather than speculative spikes, reinforcing the project’s commercial potential. LU7 is engaging with engineering firms to finalise design, equipment specifications, and costings, aiming to select a preferred partner in the coming quarter. This project promises to unlock a novel source of critical minerals while reducing environmental impact, building on recent findings that highlight significant carbon emission reductions and revenue uplift from the process.
Leadership Changes to Accelerate Growth
To support this expansion, LU7 appointed Iggy Tan as full-time CEO effective April 1, 2026, while he retains his role as Executive Chairman. Tan has been instrumental in shaping the company’s lithium conversion gap strategy and accelerating project development. Additionally, Dr Jingyuan Liu was promoted to part-time Executive Director to provide technical leadership, particularly on the Port of Brownsville refinery scoping study.
These leadership changes signal LU7’s commitment to advancing its critical minerals projects amid improving market conditions. The company reported cash outflows from operations and investing activities during the quarter, with $655,000 in cash reserves at period end. The board remains vigilant on funding needs and may pursue capital raises as required to support project milestones.
The recent binding spodumene supply agreement with Norah Mining underscores LU7’s strategic positioning in securing upstream resources essential for long-term refinery operations.
Bottom Line?
LU7's dual refinery and recycling projects position it well to capitalise on the lithium and silver market upswings, but significant funding and execution risks remain ahead.
Questions in the middle?
- How will LU7 finance the estimated US$500 million needed to develop its lithium refineries?
- What are the timelines and regulatory hurdles for the Port of Brownsville refinery project?
- Can LU7 successfully scale its silver extraction technology beyond demonstration to commercial production?