Avalon starts Lake Superior project feasibility study

Executive Summary

• Avalon Advanced Materials Inc. has commenced the feasibility study (FS) engineering for its Lake Superior Lithium Inc. (LSLi) lithium hydroxide processing project in Thunder Bay, Ontario.
• The FS builds on a September 2024 PEA that demonstrated strong project economics, including a $4.1B after-tax NPV, 48% IRR, and $1.2B initial capital cost for a 30,000-tonne/year battery-grade lithium hydroxide facility.
• Nordmin Engineering leads the FS team, with project completion targeted for the first half of 2027, advancing the company toward construction readiness and strategic partnership discussions.

Key Details

• FS Engineering Team: Nordmin Engineering Ltd. (lead consultant, overall coordination & design), Primero Americas Inc., Krech Ojard & Associates, and Metso Corp. (process design). All disciplines overseen by qualified persons under NI 43-101.
• Timeline: Feasibility study completion targeted for the first half of 2027.
• PEA Economic Highlights (Sept 2024, DRA Americas Inc.):
• Design capacity: 30,000 tonnes/year of battery-grade lithium hydroxide (LiOH).
• After-tax NPV: $4.1 billion at 8% discount rate.
• After-tax IRR: 48% over a 30-year period.
• Initial capital cost: $1.2 billion; Total capital cost: $1.3 billion.
• All-in life-of-project operating costs: $13,029/tonne (includes purchased spodumene).
• Financing: Closed a $18.65 million financing in October 2025 to fund technical and economic study updates.
• Processing Technology: Utilizes Metso's proprietary zero-discharge process (calcination, pressure leaching, conversion, ion exchange, crystallization) with no acid roasting; produces a byproduct usable as industrial building material.
• Site & Infrastructure: Located at 965 Strathcona Ave, Thunder Bay (former pulp/paper site). Benefits from existing deepwater port (to be refurbished), CN Rail line (spurs to be added/refurbished for spodumene and byproduct shipping), municipal water/sewage, two 115k VA power lines, and on-site natural gas.
• Logistics & Storage: Dedicated buildings for spodumene concentrate buffering and analcime (byproduct) storage. Rail and port will handle inbound spodumene and outbound lithium products/byproducts.
• Product Strategy: FS will include trade-off studies to determine optimal final product (battery-grade lithium hydroxide vs. lithium carbonate) based on market demand and customer qualifications.
• Strategic Positioning: Aims to be one of Canada's first commercial lithium refineries, supporting North American EV and energy storage supply chains.

Notable Quotes

• Scott Monteith, President & CEO: "We are excited to move into the feasibility engineering phase for the Lake Superior Lithium project... The feasibility study builds on the technical and commercial groundwork established in the PEA as the project advances toward partnership engagement and financing readiness. With a strong technical foundation, a highly experienced, and capable in-house owner's team and a solid funding position, Avalon is well positioned to deliver the feasibility study in the first half of 2027 and move decisively toward construction readiness."
• Kurt Boyko, Director, Consulting Engineering, Nordmin Engineering: "Nordmin Engineering is very pleased to support Avalon in advancing the feasibility study for the LSLi project... This study represents an important step in demonstrating the potential of a significant project at LSLi, and we're proud to contribute our technical expertise to its development."