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Core Lithium (ASX:CXO) awarded $6M grant

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ASX:CXO      MCAP $299.1M
22 July 2021 12:00 (AEST)
Core Lithium (ASX:CXO) - Managing Director, Stephen Biggins

Source: Daily Mercury

Core Lithium (CXO) has been granted $6 million under the Federal Government’s modern manufacturing initiative.

The Australian Federal Government awarded the grant in recognition of the future commercial potential for Core to produce battery-grade lithium hydroxide near its Finniss Lithium Project in Darwin.

Core Lithium says it will use the funds to build a pilot processing facility for the production of battery-grade lithium hydroxide at Darwin Harbour’s Middle Arm Industrial Precinct.

Core says this is an encouraging early step in its path to assessing the longer-term potential of its project. The grant follows the Federal Government’s stamp of approval of major project status for the Finniss Project.

The Minister for Industry, Science and Technology, Christian Porter, says the $1.3 billion modern manufacturing initiative provides targeted support for projects that will deliver big rewards for the local economy in terms of export earnings and new job opportunities.

“Whether it’s building large-scale battery systems, adding value to critical minerals exports through new refining techniques, or driving the adoption of battery power in mining vehicles, these projects will increase Australia’s international competitiveness and help position us a future leader in this crucial sector,” said Christian Porter.

Core’s current goal is to export spodumene concentrate from the Finniss Project, which is on track to begin construction before the end of the year. As such, a scoping study is underway to examine the potential to capture more of the lithium value chain through downstream processing of this concentrate to product lithium hydroxide.

This scoping study will be followed up with a feasibility study, which will be supported by the grant.

The company predicts first production will commence by the end of 2022.

Core Lithium was up 6.12 per cent, trading at 26 cents at 12:55 pm AEST.

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