TORONTO (miningweekly.com) – Quebec-focused lithium miner Canada Lithium has been awarded a grant of up to $6.5-million from the Canadian government, through Sustainable Development Technology Canada (SDTC).

The grant was awarded to Canada Lithium to construct a pilot plant to test the viability of refining lithium metal from the company's lithium products, soon to be produced from the new mine and process plant currently being commissioned near Val d'Or, Québec.

"Our government is doing its part to encourage innovation and the next wave of clean technologies to help protect our environment and create high-quality jobs. Investment in projects such as these demonstrate our leadership in driving a vibrant clean technology industry in Canada,” Natural Resources Minister Joe Oliver said on Friday.

"It is an honour to be chosen for the SDTC program, which funds projects aimed at creating jobs in Canada's dynamic cleantech sector. It also fits well with our strategic goal to broaden our product offering, the core of which will be lithium carbonate, but with higher-value downstream products such as lithium hydroxide and lithium metal," Canada Lithium president and CEO Peter Secker said in a statement.

SDTC CEO Vicky Sharpe added that as a component of electric vehicle (EV) batteries, lithium is in high demand worldwide and an important tool for the clean technology sector.

"The technology being developed in this project has the potential to reduce total EV battery costs, thereby increasing the rate of EV uptake. This represents an exciting development for Canada's cleantech sector and an opportunity to reach markets overseas," Sharpe said.

Lithium metal is used as the cathode material for primary lithium batteries, lithium metal polymer batteries and in the newly developed lithium-air battery designs. In addition, it is increasingly used in aluminium alloys in aerospace applications and for the production of butyl lithium products. The current market price for 99.9% lithium metal is quoted at over $60 000/t.

Canada Lithium said it would propose to start construction of a 200 t/y pilot plant on the Québec Lithium site towards the end of the third quarter.

The objective of the pilot plant is to produce battery-grade, 99.95% lithium metal for metallurgical acceptance testing in Québec and Asia. The production of lithium metal consumes significant quantities of electrical power; therefore, the location of a new plant in Québec relies upon utilising competitively priced electrical power from Hydro-Québec.

If the pilot plant proves a success, Canada Lithium could potentially start construction of a 2 000 t/y lithium metal plant as early as the end of 2014.

Canada Lithium said it was nearing the end of the commissioning phase of its $207-million openpit mine and process plant. The first shipment of lithium carbonate is expected at the end of March. The company has also completed designs for a lithium hydroxide circuit and sodium sulphate circuit at the plant.

The company’s stock lost 2.20% of its value on Friday to trade at 89 Canadian cents apiece on the Toronto bourse.