Lithium Universe Ltd (ESMAF) Procurement Strategy for Becancour Lithium Project
Lithium Universe Limited (ASX:LU7) (OTCMKTS:ESMAF) is pleased to announce that the Company's key lithium Board members and CEO visited Hatch Ltd's (Hatch) Shanghai procurement office to establish the procurement strategy for the Becancour Lithium Project.
Lithium Universe aims to replicate the procurement success in Jiangsu at the Becancour Lithium Refinery in Quebec. Jiangsu had 60-70% of its plant supplied by top-quality Chinese suppliers, with the remainder coming from worldwide suppliers. By implementing rigorous quality control measures at the supplier's manufacturing site, Galaxy was able to achieve top-quality equipment that aligned with international engineering standards.
Local fabricators have been servicing the Chinese lithium refinery industry for the last 15 years and key suppliers utilised for the Jiangsu project have become the backbone of the rapid expansion across the country. These same key suppliers utilised by the Galaxy team are well-known, reliable, and provide a known quality product. It is critical for Lithium Universe to reduce the number of unknowns when planning the construction of the Becancour Refinery and partner with vendors who have a proven track record of delivery of specific plant and equipment.
For Lithium Universe to be competitive and to build cost-effective lithium refineries, LU7 will be using the "same equipment, same supplier" procurement strategy. Firstly, utilising proven equipment designs, there will be reduced engineering work required for the Definitive Feasibility Study (DFS). Secondly, with the "same supplier" strategy, LU7 can tap into the original supplier's design and construction experience, minimising the cost and time associated with repeated detailed engineering.
Another key advantage is that the preferred suppliers will be able to provide LU7 with accurate quotations, as opposed to budget numbers. Alternative suppliers closer to Canada will be used if the original suppliers are no longer in business. Key Board members and the CEO reinforced this procurement strategy, design, and logistics with the Hatch procurement office in Shanghai last month. In addition, LU7 met with the key equipment providers in Shanghai to finalise the design for Becancour. In this instance, the kiln will be fabricated in China and shipped to Canada for installation. Using proven equipment from proven suppliers, this process aims to fast-track the DFS process.
Another advantage of utilizing established offshore suppliers is the mitigation of potential scheduling disruptions caused by the increased demand for construction materials and highly skilled tradespeople. This surge in demand is anticipated due to the numerous battery supply chain projects scheduled for construction over the next four years in Canada.
Lithium Universe is dedicated to bridging the lithium conversion gap in North America while supporting both provincial and federal governments in restoring the battery supply chain in Canada. The company's objective is to collaborate with local Canadian suppliers, providing training and facilitating knowledge transfer while utilising the Becancour Refinery as a blueprint for replication elsewhere in North America.
Chairman Iggy Tan said "A key aspect of our approach is to utilize equipment and top quality suppliers that we have used before. By sticking with what works, we aim to expedite the engineering process and ensure seamless coordination among all parties involved.
Building on the successes of past projects, such as Jiangsu where 60-70% of our suppliers were Chinese, we are confident in our ability to manage quality while optimizing efficiency. By fostering strong partnerships and implementing rigorous quality control measures, we are well-equipped to deliver a quicker, cheaper, and more reliable project. One of the most significant advantages of our approach is the reduction in lead times, allowing us to execute tasks with greater speed and precision".
Alex Hanly Chief Executive Officer Lithium Universe Limited Tel: +61 448 418 725 Email: info@lithiumuniverse.com Iggy Tan Chairman Lithium Universe Limited Email: info@lithiumuniverse.com
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