Li-Metal Corp. announced the completion of its previously-announced concept study for a commercial North American lithium metal production facility with an annual capacity of up to 1,000 tonnes. Highlights: Competitive brownfield CAPEX: Upon reaching full capacity with an average production estimate of 1,000 tonnes per year, the total capital expenditures was estimated at USD 109 million.

The CAPEX estimates in this concept study aligned with Li-Metal expectations and encompasses bothindirect costs (35% of the direct costs) and contingency (30% of direct and indirect costs). Owners' costs and escalation were excluded from this estimate. The capital cost accuracy of this study was estimated to be between -25% and +50%.

F favorable Operating Costs: The study noted that the expected conversion cost for converting carbonate to lithium metal, excluding raw material costs, would be up to USD 31 per Kg including leasing costs for a brownfield facility. This compares favorably to the expected conversion cost for traditional chloride to lithium metal processes of USD 45-52 per Kg1 excluding OPEX required to convert carbonate to chloride. Feedstock Requirement: The study also highlighted the commercial plant would require approximately 5,600 tonnes of lithium carbonate per year.

Li-Metal is currently in discussions with several Inflation Reduction Act (IRA) compliant carbonate producers and battery OEMs to identify partners to commercially jointly scale the C2M technology. The envisioned 1,000 tonnes per year plant will leverage Li-Metal's patented and sustainable carbonate-to-metal (C2M) lithium metal technology. The concept study focused on a compact plant design and validates Li-Metal's asserting that the C2M technology holds promise for the development of a commercial lithium metal plant at a brownfield site.

The study showed potential for attractive plant-level economics, in line with the Company's expectations. Additionally, the ability to leverage a brownfield site would enable Li-Metal to benefit from significant cost-efficiencies in addition to being able to utilize existing infrastructure and potentially an existing workforce. The study noted that in addition to eliminating chlorine gas by-product, the conceptual plant's GHG emission footprint would be well below the required reporting levels under the relevant regulatory framework in Canada and USA.

As outlined in the recommendations for the study, Li-Metal will continue to develop its technology, equipment design and engineering. The concept study envisages completion of all piloting, scale-up, study, engineering, and construction activities in 48 months for a commercial-scale plant.