Avalon Advanced Materials (TSX: AVL | OTCQB: AVLNF) has signed a memorandum of understanding (MOU) to create a strategic partnership with Metso, a global leader in clean, sustainable critical mineral processing technology.
The agreement, signed at Canada House in London, UK will immediately seek to establish terms to develop a lithium hydroxide production facility to process lithium mineral concentrates that are essential for the North American electric vehicle (EV) battery value chain.
Metso’s will construct and operate a full-service lithium processing facility at Avalon’s recently acquired Thunder Bay, Ontario industrial site. Upon completion of the project, Avalon will be the first vertically integrated lithium producer in Ontario, while ensuring Canada’s EV battery manufacturing base has a stable, proximate, and long-term supply of this strategically vital resource.
“Metso’s platform and technological solutions perfectly complement Avalon’s vision to complete an integrated lithium value chain in Ontario, predicated on innovative process solutions,” said Zeeshan Syed, president of Avalon.
“We view Metso as an integral part of this rapidly growing sector and a foundational partner in developing internationally best-in-class processing capabilities that are environmentally sustainable, allowing Avalon to meet the soaring demand for battery-grade lithium.”
The Non-Binding MOU stipulates:
- The pursuit of a definitive agreement to establish a lithium hydroxide processing facility in Thunder Bay, ON.
- Avalon to license Metso technology and solutions to produce lithium hydroxide cathode materials to serve the EV market.
- Allow Metso to conduct testing and engineering work across Avalon’s portfolio of critical mineral projects, including the Company’s flagship deposit at Separation Rapids near Kenora, ON.
- The two companies anticipate reaching a definitive agreement on or before 1 September 2023.
Avalon’s strategic partnership with Metso is a first in Canada and is a significant step towards helping Avalon execute on its vertically integrated business strategy, and in turn, entrench Ontario’s position as an advanced manufacturing hub.
