- A new pre-feasibility study for Nano One Materials’ (TSX:NANO) Candiac property in Quebec indicates a 10x increase in lithium iron phosphate (LFP) production capacity
- The facility could yield C$450 million in economic activity for Québec in its first five years
- Nano One Materials holds a patented, scalable and low-carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials
- Nano One Materials stock (TSX:NANO) has added 132.20 per cent over the past five years
A new pre-feasibility study for Nano One Materials’ (TSX:NANO) Candiac property in Quebec indicates a 10x increase in lithium iron phosphate (LFP) production capacity.
The company could add 25,000 tonnes per annum of LFP production, with potentially significant benefits in terms of size efficiency, footprint and capital cost.
According to Precedence Research, the global lithium iron phosphate battery market was valued at US$12.7 billion in 2022 and will surpass US$54.36 billion by 2032 thanks to the compound’s applications in electric vehicles, energy storage and consumer electronics.
The Candiac facility will employ the company’s streamlined One-Pot process for low-cost production of high-performance lithium-ion battery cathode materials.
The Front-End Loading (FEL) 2 pre-feasibility study defines:
- The potential production line size
- The optimal plant size for the Candiac property
- Operating cost estimates
The study, as well as a subsequent economic impact assessment by the Institut de la Statistique du Québec, also estimates that the facility has the potential to create 149 direct, full-time highly skilled jobs and 1,065 indirect jobs, which would generate tax revenues of approximately C$35 million during construction and over C$17 million annually at full capacity. The facility could yield C$450 million in economic activity for Québec in its first five years.
Numerous customers are currently evaluating LFP samples for potential offtake commitments, with the company planning to court gigafactories in the near future.
“The study anticipates that the optimal production line capacity for One-Pot LFP is 12,500 tonnes per year, and that two such lines may fit in a 167,000 square foot facility at our Candiac site,” Dan Blondal, CEO of Nano One Materials, said in a statement. “Capacity could be added in two stages to synchronize with demand, supporting about 12.5 gigawatt hours of LFP cell manufacturing and increasing our capacity by 10x with only a 2x increase in footprint, when compared to the existing 2,400-tonne facility. This is a leap forward for our One-Pot process made possible by fewer units of operation, high efficiency kilns and by eliminating all wastewaters, by-products and treatment thereof.”
Further potential cost reductions to the facility’s process design will be factored into an FEL 3 feasibility study slated for Q3 2024.
The news follows Nano One’s closing of a C$16.9 million investment from Sumitomo Metal Mining, a Japanese company with a production capacity of 60,000 tonnes of cathode materials (nickel and LFP) per year.
Nano One Materials is a clean technology company with a patented, scalable and low-carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials. The company boasts partnerships with the likes of BASF, Umicore and Rio Tinto.
Nano One Materials stock (TSX:NANO) last traded at $2.74 per share. The stock has added 132.20 per cent over the past five years.
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