Olaroz II will increase the production capacity of the highest purity lithium carbonate by an additional 25,000 tonnes per year. In turn, it will raise total production capacity to 42,500 tonnes per year. The initiative involved a total investment of US$ 425 million.
Australian company Allkem, majority shareholder of Sales de Jujuy, announced the first production from its Olaroz II expansion project. The initiative involved a total investment of US$425 million and was financed by a combination of operating cash flow, shareholder loans and a US$180 million loan from Japan’s Mizuho Bank Ltd. and guaranteed by Japan Oil, Gas and Metals National Corporation (JOGMEC).
The expansion of the plant, which is jointly managed by Allkem, Toyota Tsusho Corporation and the Jujuy state-owned company JEMSE, will increase the production capacity of the highest purity lithium carbonate by an additional 25,000 tonnes per year. In turn, it will raise total production capacity to 42,500 tonnes per year.
Of the total production at Olaroz, 9,500 tonnes of technical grade lithium carbonate will be used as feedstock for the production of battery grade lithium hydroxide at Allkem and Toyota Tsusho Corporation’s Naraha plant in Japan.
The project
The Olaroz II expansion project began in late 2019. For its start-up, 480 suppliers of inputs, services and works were contracted, with a turnover of US$ 425 million, of which US$ 120 million corresponds to companies from Jujuy and US$ 30 million to companies from the local communities; and the direct and indirect hiring of more than 3,500 employees, 60% of whom are from Jujuy.
The expansion work involved the construction of 15 new brine extraction wells, 31 evaporation pools, three lime plants, the expansion of the electric power generation area, and a reverse osmosis water plant. Also, a chemical discharge plant, a 47-kilometer aqueduct with pumps, a soda ash plant and a carbonation plant.
In addition, during the construction of the project, accommodation and service spaces were built, such as medical services, canteens, administrative offices, recreational spaces and housing modules for the more than 900 permanent employees who worked on the expansion’s plant.
Commenting on the impact of the project on the entire value chain, Martín Pérez de Solay, CEO and global director of Allkem, said: “We are very proud to have reached the milestone of the first production of Olaroz II that proves the operational viability of the carbonation process.
Pérez de Solay added: “Olaroz’s successful expansion reflects our growth strategy and commitment to ensuring long-term social and economic sustainability for customers and stakeholders. This achievement demonstrates the expertise of our team who will now focus on completing the commissioning to reach full capacity.
Allkem said: “With this launch, the company reaffirms its commitment to being a sustainable supplier of high quality lithium chemicals aimed at changing the global energy system to promote the transition to a low-carbon economy.
SOURCE: econojournal.com.ar