Century Lithium Corp. is moving ahead with plans for a commercial-scale chlor-alkali plant in the Western United States, a project the company says could strengthen the critical-minerals supply chain while creating a potential new source of reagents for its Angel Island lithium project in Nevada.

 

The company said Tuesday it is evaluating sites in Nevada and Utah and expects to select a preferred location shortly. It is targeting initial production of 300 short tons per day of chlorine, with the plant designed to potentially double capacity to 600 short tons per day as demand develops.

 

The proposed facility would produce chlorine, hydrochloric acid and sodium hydroxide using sodium chloride, water and electricity. Century Lithium said the products are widely used in lithium and battery-material processing, rare-earth separation and the production of precious and specialty metals.

 

"In the course of our work on Angel Island, Century Lithium identified chlor-alkali products as a fundamental component of the critical minerals supply chain," said Bill Willoughby, President and CEO of Century Lithium. 

 

"We also recognized a regional opportunity in the Western U.S. for a plant producing these products. The proposed CA Plant has the potential to generate revenue on its own, train an operating team and reduce future reagent supply risk to Angel Island. Century Lithium has evaluated a number of potential sites for the CA Plant in Nevada and Utah that could meet its criteria for proximity to infrastructure and resources and expects to finalize a selection shortly. The Company has obtained non-binding offtake interest for production from the CA Plant from a number of companies and is actively pursuing project-level financing."

 

Century Lithium said it has signed eight non-binding memoranda of understanding with companies in industrial and chemical sectors across the Western U.S. The agreements could collectively account for the full initial production of the proposed plant, although none is yet a definitive sales agreement.

 

The company said it is also negotiating with additional potential buyers.

 

Candidate sites have been assessed based on access to feedstock, electricity, rail, markets, land and permitting. The company said due diligence is continuing, including work on power supply, salt feedstock, transportation, water rights, land tenure, environmental conditions and the permitting process.

 

The proposed chlor-alkali plant would be developed separately from the chlor-alkali facility already included in the base case for Century Lithium's Angel Island feasibility study.

 

The company said the capital and operating estimates for Angel Island remain unchanged. Costs associated with the new proposed plant have not been added to the lithium project's economics.

 

Century Lithium said the proposed plant's economics are based solely on commercial sales to third-party customers and do not include revenue or cost savings from Angel Island.

 

Any future supply of chlor-alkali reagents from the new facility to Angel Island would depend on transportation economics.

 

The company described the plant as a potential standalone industrial project that could ultimately support its lithium strategy.

 

Century Lithium plans to pursue non-dilutive, project-level financing rather than fund the plant directly through its corporate balance sheet.

 

The financing structure under consideration could include vendor financing tied to site acquisition, institutional preferred equity, customer prepayments and other support from offtake partners, as well as U.S. government financing programs for domestic critical-minerals and industrial capacity.

 

The company has hired financial advisers and begun discussions with U.S. government financing agencies.

 

But Century Lithium stressed that financing has not been secured and that no definitive agreements have been signed.

 

The next stage is expected to include securing a site and project financing, followed by front-end engineering and design and permitting. Construction financing would be pursued after completion of FEED and definitive offtake agreements.