CENTURY LITHIUM ADVANCES PLANS FOR CHLOR-ALKALI PLANT
Century signs non-binding chlor-alkali MOUs, though limited immediate upside restricts near-term value.
Century Lithium Corp. (LCE) announced plans to develop a commercial-scale chlor-alkali (CA) plant in the Western United States, targeting Nevada or Utah. The company has signed eight non-binding Memoranda of Understanding (MOUs) with third parties for the offtake of chlorine, hydrochloric acid, and sodium hydroxide, which could potentially cover initial production capacity.
Target production is set at 300 short tons per day of chlorine, with provision to double to 600 st/d. The CA Plant is intended to be a self-funding, project-level asset financed through non-dilutive means, including vendor financing, preferred equity, and government programs, separate from the Angel Island Feasibility Study. The plant does not replace the on-site chlor-alkali facility included in the January 3, 2026 Feasibility Study, and capital and operating estimates for Angel Island remain unchanged.
Next steps include securing a preferred site, obtaining project-level funding, completing Front-End Engineering and Design (FEED), and commencing permitting.
Century Lithium Corp. (LCE) announced the development of a commercial-scale chlor-alkali plant, a move described as an incremental, expected strategic step rather than a market-moving event. The feasibility study released in February 2026 already outlined an on-site chlor-alkali plant to produce reagents and sell surplus sodium hydroxide. This new facility serves as a logical extension to de-risk reagent supply and generate early revenue.
The associated memoranda of understanding (MOUs) are explicitly non-binding, meaning revenue commitments are not guaranteed. Financing is targeted to be non-dilutive and project-level, which mitigates immediate shareholder dilution risk, but no financing has been secured yet.
The Angel Island project economics ($4.01B NPV, $997M Phase 1 capex) remain unchanged. The market likely priced in the chlor-alkali component during the feasibility study release. Execution risk remains high for a pre-revenue company, and the standalone nature of the CA plant means it does not immediately accelerate the core lithium project timeline.
Century Lithium Corp. (LCE) is a pre-revenue exploration and development-stage company focused on the 100%-owned Angel Island Lithium Project in Esmeralda County, Nevada. The project utilizes a patent-pending chloride-based Direct Lithium Extraction (DLE) process that integrates alkaline leaching with on-site chlor-alkali generation of HCl and NaOH. This approach eliminates reliance on sulfuric acid by leveraging locally available salt and electricity.
The 2026 Feasibility Study outlines a mine life of more than 60 years, producing an average of 26,500 tpa of battery-grade lithium carbonate. Phase 1 capital is estimated at $997M, with Phase 2 expansion adding $660M. Average operating costs are projected at $4,389/t Li2CO3, with a sodium hydroxide co-product credit that could drive net operating costs below zero. The company is also exploring lithium hydroxide, lithium metal, and rare-earth element recovery as additional revenue streams.