RGN | EV Metals Group

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EV METALS GROUP

Building a downstream battery chemicals processing


MINING | EV METALS GROUP

LS GROUP

g hub in Saudi Arabia for the global energy transition


Since visiting the Kingdom of Saudi Arabia in 2019, EV Metals Group (EVM) has been focused on developing the world’s first integrated Battery Chemicals Complex in the Middle Eastern country, after witnessing its ambitious plans to fully diversify the economy under Saudi Vision 2030. The opportunity to start a global battery chemicals and technology business in a region with easy access to key markets in Europe, Asia Africa and (to a lesser extent) North America was too good to ignore even then, as the global clean energy transition was just beginning to crank into gear. The COVID-19 pandemic has since provided fresh impetus for the low carbon economy, which is currently being built on the widespread electrification of the energy and transport sectors. In recent years, electric vehicle (EV) take-up has mostly trended in China, Europe and North America, however the latter two regions are sorely lacking key components along the entire EV manufacturing supply chain, but particularly at the downstream level. EVM aims to reduce Europe and North America’s reliance on China for battery materials processing by building the Battery Chemicals Complex in Saudi Arabia’s new Yanbu Industrial City. RGN’s editor sat down with EVM CEO Michael Naylor to find out more about the symbolic development.

Jacob Ambrose Willson: EVM is building a global battery chemicals and technology business. What were the key drivers behind this focus on the battery section of the global clean energy transition? Michael Naylor: We are witnessing government intervention at a global scale unprecedented in the history of humankind towards a clean energy future. This is propelling ambitious targets in the transformation to electrification globally. EVM’s strategic objective is to capture a growing share of the battery chemicals business as

stable and transparent supplies

structural deficits in supply

of high purity chemicals

emerge in markets worldwide

and cathode active materials

over the remainder of the

required in rechargeable

decade.

lithium-ion batteries used in electric vehicles (EVs) and

Our business model is based

renewable energy storage.

on the diversification and geopolitical alignment of

EVM is focused on delivering

supply chains for OEMs in

the world’s first integrated

growth markets in Europe

Battery Chemicals Complex

and North America. They are

comprising of a Lithium

looking to secure long-term,

Chemicals Plant, a Nickel


MINING | EV METALS GROUP

Chemicals Plant and a Cathode

MN: The infrastructure in Saudi Our journey to and in the

Active Materials Plant to meet

Arabia is first class and the

Kingdom began in 2019 and

this growing demand.

vast oil wealth means it has all

led us to Saudi Vision 2030, a

the elements needed to build

national initiative to transform

JAW: Why is Saudi Arabia

a successful battery chemicals

the economy of the Kingdom

the perfect location for the

industry. Yanbu Industrial City

from being a global leader in

company’s first integrated

is strategically located near the

energy based on fossil fuels

Battery Chemicals Complex,

largest port on that side of the

to a global leader in energy

and particularly Yanbu

country, with easy access to

based on renewables. The

Industrial City on the Western

Europe and North America for

breakthrough for EVM was

coast?

imports and exports.

found in the aspirations of Vision 2030 and led us to the development of midstream


and downstream processing

the Nickel Chemicals Plant to

energy density cathode active

facilities for the production of

produce 450,000 tpa of nickel

materials, as well as lower

cathode active materials.

sulphate. Construction of the

energy density cathode active

first two processing trains

materials at the Battery

We are fast tracking the

for production of LHM will

Chemicals Complex?

staged development and

start in Q1 2023. This will

expansions of the Battery

closely be followed by the

MN: Cathode active materials

Chemicals Complex to include

Nickel Chemicals Plant and

require high purity chemicals

four processing trains in the

the Cathode Active Materials

in the form of LHM and

Lithium Chemicals Plant

Plant.

nickel, cobalt and manganese

to produce 100,000 tonnes

(NCM) sulphate for high

per annum (tpa) of lithium

JAW: What has shaped the

energy density batteries.

hydroxide monohydrate (LHM)

decision for the company

High energy density cathode

and three processing trains in

to focus on producing high

active materials are required


MINING | EV METALS GROUP

for high performance with

demand growth. Ultimately, this

longer driving distances

leaves new OEMs completely

between recharges. Whereas

exposed to supply, pricing and

lower energy density cathode

cost risks.

active materials containing lithium ferrous phosphate

JAW: How will the company

(LFP) provide lower driving

ensure security of supply for

distances between recharges.

the raw materials (nickel, cobalt, manganese, lithium)

EVM will specialise in the

while the Saudi battery supply

Michael Naylor

production of high energy

chain lacks the upstream

density cathode active

element?

Managing director and CEO

materials but will also develop capacity for production of LFP.

MN: EVM is moving forward with the development of the

Benchmark Minerals

Battery Chemicals Complex

Intelligence forecasts

based on the upstream

structural deficits in the

integration of supply chains

supply of LHM and NCM, the

through production of and life

key chemicals required for

of mine offtake agreements

high energy density cathode

for intermediate products

active materials, commencing

containing lithium, nickel,

in 2024/25 and 2027/28

cobalt, manganese, aluminium

respectively.

and other metals from Western Australia.

There is a massive investment at OEM level by EV

Western Australia is a politically

manufacturers and battery

stable jurisdiction with low

cell manufacturers. However,

sovereign risk and transparent

the level of investment in

supply chains. It is the largest

the upstream supply chain

producer of lithium in the form

for critical raw materials is

of spodumene concentrate for

not sufficient to supply the

global markets. It is also the

Mr Naylor has over 35 years of experience in the management and development of companies engaged in the business of mineral resources, mining finance and process technology in gold, nickel, cobalt, chromium and platinum group metals in Australia and South Africa. He led the acquisition and re-consolidation of the mineral rights and mining tenements covering the Weld Range Complex commencing in 2007. Naylor led and has managed the evaluation of Range Well Mineral Resources since 2009, the Ausinox Stainless Steel Alloy Project, the Range Well MHP Project and the Battery Chemicals Complex. He has been a director and CEO of EVM Nickel Pty Limited since 2010 and CEO of EV Metals Group since 2015. He was formerly a director and CEO of Podium Minerals Limited.

a

j


“The infrastructure in Saudi Arabia is first class and the vast oil wealth means it has all the elements needed to build a successful battery chemicals industry. Yanbu Industrial City is strategically located near a port with easy access to Europe and North America for imports and exports” Michael Naylor – EV Metals Group CEO

largest producer of nickel,

implemented by the Australian

cobalt and rare earth elements

Lithium Alliance Pty Limited

in Australia.

(ALA), a wholly owned subsidiary of EVM, through

EVM will bring world class,

joint ventures and offtake

leading technical capabilities,

agreements as an alternative

technology and know-how

to Chinese companies that

from Western Australia for

currently dominate the

the development of the Saudi

purchase of spodumene

supply chain and the Battery

concentrate from Australia to

Chemicals Complex.

supply chemicals processing companies in China.

We have recently launched the Australian Lithium Alliance, a

As part of ALA, EVM has

strategic initiative to partner

entered into an Earn-in Joint

with Australian companies

Venture agreement with

to accelerate exploration,

Zenith Minerals Limited (ZNC)

development, mining,

to accelerate the exploration

processing and production of

for, and production of

Lithium Minerals. This will be

spodumene concentrate


MINING | EV METALS GROUP

from Zenith’s Split Rocks and

located in the idwest of

containing nickel, cobalt and

Waratah Well Tenements. EVM

Western Australia. The Range

manganese at an MHP Plant

also owns 100% of the Range

Well Resource will produce

within the mining tenements

Well Nickel Cobalt Resource

mixed hydroxide precipitate

in Western Australia. The


MHP will be shipped to the

​RIWAQ Al Mawarid for Mining,

Ministry of Energy and the

Nickel Chemicals Plant for

a subsidiary of our company in

Ministry of Investment to

downstream processing to

the Kingdom, has applied for

accelerate the development

produce high purity chemicals

18 exploration licences in five

of the Battery Chemicals

in Saudi.

areas with potential critical

Complex and the Saudi supply

raw materials containing

chain in the Kingdom in line

JAW: How will EV Metals

lithium, nickel, copper,

with Vision 2030.

help Saudi Arabia develop its

cobalt, platinum group metals

own raw materials supply,

and rare earth elements for

JAW: How useful was the

via mineral exploration and

development of the Saudi

recent Future Minerals

the development of mining

supply chain for the Battery

Forum, in terms of

projects?

Chemicals Complex.

focusing conversations and investments on developing

MN: EVM has entered into an

NIDC is our lead agency in

the Saudi mining and battery

agreement with the National

the Kingdom. It guides EVM

materials supply chains?

Industrial Development Centre

in ongoing engagements

(NIDC) for the development of

with other lead agencies

MN: FMF was a strategic

a Saudi supply chain for raw

in the Kingdom including

platform for us to establish

materials in the Kingdom.

the Ministry of Industry

EVM as a frontrunner in the

and Mineral Resources, the

global battery chemicals


MINING | EV METALS GROUP

and technology industry. It

the bottleneck in slowing

feasibility studies for our

opened significant doors for

down the transformation to

unique Battery Chemicals

EVM with key stakeholders

electrification and a clean

Complex.

from the Kingdom, as well as

energy future.

investors and the media. We

The FEED agreement with

are grateful to the Ministers

JAW: How much of a big

Wood is for the first two

and their lead agencies for

step forward was the recent

processing trains of our

their efforts to recognise the

announcement of a FEED

Lithium Chemicals Plant at the

Battery Chemicals Complex as agreement with a subsidiary

Battery Chemicals Complex,

a project of national strategic

of Australia’s Wood Group,

producing 50,000 tpa of LHM.

importance for the Kingdom.

in terms of progressing the

It is designed to process

Battery Chemicals Complex to

spodumene concentrate

construction stage?

containing 6% lithium oxide

It was acutely apparent at FMF that there is a need to address the critical gap in the

imported from upstream MN: Wood Plc have world-

supply chain for raw materials. class technical capabilities and EVM was the only company

experience in delivering LHM

focusing on this issue and

plants in Western Australia

we are aware that further

and have been working with

dialogue needs to take place

us for the last two years on

to ensure it doesn’t become

spodumene concentrators in Western Australia.


Published by Anderson Murray Media Ltd

To tell the resource market your story, contact: editorial@resourceglobalnetwork.com

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