Avalon Announces the Commencement of Feasibility Study at Lake Superior Lithium Project, Ontario

Core Viewpoint - Avalon Advanced Materials Inc. has initiated the Feasibility Study for its Lake Superior Lithium Inc. lithium hydroxide processing project, marking a significant step towards establishing a lithium refinery in Canada to support the North American battery supply chain [1][5][6] Project Development - The company completed a Preliminary Economic Assessment (PEA) in September 2024, which laid the groundwork for the current Feasibility Study [2][8] - A highly experienced engineering team has been assembled, with Nordmin Engineering Ltd. as the lead consultant, supported by Primero Americas Inc. and Krech Ojard & Associates [3][4] - The Feasibility Study will be overseen by Qualified Persons under NI 43-101, ensuring technical and regulatory compliance [4] Economic Viability - The PEA demonstrated strong project economics, with a design capacity for annual production of 30,000 tonnes of battery-grade lithium hydroxide [8] - Key highlights from the PEA include an after-tax Net Present Value (NPV) of C$4.1 billion at an 8% discount rate and an Internal Rate of Return (IRR) of 48% over a 30-year period [15] Infrastructure and Location - The facility is strategically located on the north shore of Lake Superior, approximately 13 km northeast of Thunder Bay, utilizing existing industrial infrastructure [10][15] - The project will benefit from a deep-water port, rail access, and established road networks, facilitating efficient logistics for the delivery of spodumene concentrate and other materials [17][18][19] Environmental Considerations - The project will utilize Metso's innovative lithium hydroxide conversion technology, which allows for a clean zero-discharge process and produces a by-product suitable for industrial applications [9][15] Strategic Importance - The advancement of the Feasibility Study positions Avalon as a key player in the North American lithium supply chain, addressing the current reliance on offshore lithium conversion capacity [5][6] - The facility aims to support the growing electric vehicle (EV) and energy-storage markets in North America [5][26]