ABTC starts lithium production pilot plant in Nevada

American Battery Technology Co. has commissioned a lithium hydroxide production pilot plant at its Tonopah Lithium Flats claystone deposit project in Nevada that will allow it to provide qualification product samples to potential customers and assess the viability of commercial-scale operations, the company said April 22.

"Testing and validation of the lithium hydroxide from the hundreds of tonnes of claystone material processed at this plant will be performed by prospective customers such as automotive OEMs, battery manufacturers and cathode manufacturers," ABTC said in a statement. "Over a dozen prospective strategic customers have already toured this pilot facility in recent months, and ABTC is currently evaluating opportunities for the long-term offtake of its battery-grade lithium hydroxide."

The claystone deposit at Tonopah Lithium Flats represents an unconventional resource for lithium, which currently is produced primarily from either spodumene, lepidolite, or underground brine. Spodumene, lepidolite and brine production are largely concentrated in Australia, China and South America, respectively.

The US does host some viable spodumene resources in North Carolina and brine resources in the Arkansas Smackover formation. Both types of resources are also available in Canada. However, for the US, claystone deposits in the western states and recycling operations could provide new avenues of domestic lithium supply.

Nevada lithium prospects

At the Tonopah Lithium Flats, Reno, Nevada-based ABTC is targeting the potential construction of a commercial-scale 30,000 mt/year lithium hydroxide facility if its pilot plant is successful. This facility would complement its existing battery recycling facility(opens in a new tab) and planned second recycling facility, both in Nevada.

Lithium industry leader Albemarle already operates the US' only lithium mining asset in Nevada at its Silver Peak operation, where it is expanding lithium carbonate capacity(opens in a new tab) to 10,000 mt/year by 2025 from 5,000 mt/year.

Albemarle and ABTC have received federal funding for their Nevada operations, with both companies recently disclosing that they received about $9 million and $20 million, respectively, in tax credit allocations from the US Inflation Reduction Act under the Qualifying Advanced Energy Project Credit.

Lithium production prospects in Nevada have improved in 2024 with announcements from Lithium Americas(opens in a new tab) and Ioneer(opens in a new tab) that they may begin construction on their own respective lithium mining projects in the state by the end of the year.

Global lithium prices have also stabilized in recent months after plunging in 2023, allowing for more stable market outlook and investment plans. The Platts Lithium Hydroxide CIF North Asia assessment settled at $14,300/mt April 22, according to data from S&P Global Commodity Insights. The assessment has mostly remained above $14,000/mt since March 15 after falling throughout 2023 from about $80,000 /mt at the start of that year.