Clean Teq (ASX:CLQ) completes Sunrise Project Execution Plan

• Clean TeQ (CLQ) has completed its Sunrise project execution plan (PEP), which updates its previous 2018 definitive feasibility study
• The Battery Materials Project in NSW aims to supply nickel and cobalt to the lithium-ion battery market, and scandium to the aerospace, electronics and automotive sectors
• The PEP estimates Sunrise can comfortably produce annual rates of 21,293 tonnes nickel and 4,366 tonnes cobalt in the initial years
• It also estimates scandium oxide supply of 10 to 15 tonnes per annum, before ramping up to 20 tonnes per annum from year three onwards
• Additionally, Sunrise’s average annual post-tax free cashflow is estimated at US$308 million (around A$436 million)
• Shares in CLQ are trading 6.6 per cent higher, worth 28.3 cents each

Metals recovery and water treatment specialist Clean TeQ (CLQ) has completed its Sunrise project execution plan (PEP), which updates its previous 2018 definitive feasibility study.

Clean TeQ said the recent PEP shows the Sunrise Battery Materials Project has the potential to be one of the world’s lowest cost, development-ready sources of critical battery raw materials.

The company plans said the project in NSW aims to supply nickel and cobalt to the lithium-ion battery market, and scandium to the aerospace, electronics and automotive sectors

In particular, Clean TeQ has designed Sunrise’s refinery to be capable of producing enough high-quality nickel to support the production of up to one million electric vehicles (EV) and enough cobalt to support two million EVs each year.

But the company is still working on actually getting the project off the ground and into production, with funding yet to be locked in.

“We cannot anticipate how long it will take to have the project funded and in development, but we can be patient with such a strategically important asset,” Clean TeQ Co-Chairman Robert Friedland said.

“We are fully committed to ensuring it is developed with partners who understand the value that responsible supply chain integration brings,” he added.

The PEP estimates Sunrise can comfortably produce annual rates of 21,293 tonnes nickel and 4366 tonnes cobalt in years two through to 11, before dropping slightly in years 12 through to 25.

The project is also forecast to deliver over US$16 billion (approximately A$22.6 billion) in revenue and an average annual post-tax free cashflow of US$308 million (around A$436 million) over the first 25 years of operations.

While supply of scandium oxide is estimated at approximately 10 to 15 tonnes per annum, before ramping up to 20 tonnes per annum from year three onwards.

CleanTeQ plans to walk shareholders through the entire project execution plan on October 1, when it hosts a Battery Metals Day event.

Shares in CLQ are trading up a slight 6.6 per cent at 23.8 cents per share at 3:44 pm AEST.