DECEMBER 2024 QUARTERLY REPORT HIGHLIGHTS Strong Preliminary Feasibility for Bécancour Lithium Refinery The Location The Lithium Universe Strategy • • • • • Positive, robust Bécancour Refinery PFS even in low pricing environment LU7 has a counter cyclical strategy – develop project, ready for price recovery Closing the Lithium Conversion Gap – growth in resource and end market projects The Financial Modelling • • • • • • Economically viable with excellent pre-tax NPV8% of approximately US$779M IRR (pre-tax) of approximately 23.5% and payback of 3.5 years based on; Price forecast of US$1,170/t SC6 and US$20,970/t for battery grade Li2CO3 Operating costs at around US$3,976/tonne; capital cost estimate of US$494 million Expected annual revenue of approx US$383 million and EBITDA of around US$147 million Project break even at around US$780 /t (SC6) and around US$14,000 per tonne Li2CO3 The Design • • • • • • LU7 offers a solution to worldwide lithium conversion failures and startup problems Using proven Jiangsu Refinery operating technology and lithium industry experience Producing up to 18,270 tonnes/year of green batterygrade lithium carbonate Smaller off-the-shelf style plant rather than large difficult-to-operate facilities Initial focus on lithium carbonate production – feed for LFP batteries Assumptions based on real operating data and experience – not new aspirant • • Québec ideal trans-Atlantic lithium conversion centre, comparable to China Feedstock from Canada, Brazil and Africa – end market North America Critical cost benefits – cheap green power, transport mine/end market savings, US/Canada tariffs 95% GHG emission reduction with Hydro Québec’s green energy Next Steps • • Offtake discussions with interested OEMs underway LU7 continues to progress full Definitive Feasibility Study LU7 Bécancour Lithium Refinery Definitive Feasibility Study On Track To Be Released Next Quarter • • • • • • • DFS is progressing and on track as expected Finalizing capital cost estimate for DFS 80% of supplier pricing program completed Procurement strategy and material take-offs being finalized Engineering design tailored to new site conditions Project led by John Loxton, Head of Refinery Overseen by Lithium expert, Dr Jingyuan Liu (NED) LU7 Partners With Quebec Chemical Logistics Supply Company • • • • • Strategic local chemical logistics partnership with Servitank Single logistics supplier capable of sourcing multiple process chemicals Reliable delivery of critical chemical inputs to Bécancour Lithium Refinery Investigation of secondary product management and sales Proven experience in spodumene logistics and storage Lithium Universe Limited | Quarterly Report | 1 Lithium Universe Limited | ASX: LU7 (NPV) of approximately US$779 million, using an 8% Strong Preliminary Feasibility ForLimited Bécancour Lithium Universe I Quarterly Report I September 2024 discount rate, and a pre-tax Internal Rate of Return (IRR) Lithium Refinery Lithium Universe Limited recently announced the Strong Preliminary for Bécancour results of its PreliminaryFeasibility Feasibility Study (PFS) for Lithium Refinery the Bécancour Lithium Carbonate Refinery in Québec, LithiumThe Universe recently announced results of its Canada. PFS Limited confirms the viability of a the strong lithium Preliminary Feasibility Study (PFS) for the Bécancour Lithium conversion project, even within a below-average pricing Carbonate Refinery in Québec, Canada. The PFS confirmslowthe environment. The Company plans to build a reliable, a strong lithium conversion project, even within a riskviability lithiumof conversion refinery with an annual capacity below-average pricing environment. The Company plans to of up to 18,270 tonnes, utilizing proven expertise from build a reliable, low-risk lithium conversion refinery with an the Jiangsu processing model. The facility will produce annual capacity of up to 18,270 tonnes, utilizing proven environmentally friendly, battery-grade lithium carbonate. expertise from the Jiangsu processing model. The facility will Theproduce Company aims to establish a Canadian-based environmentally friendly, battery-grade lithium lithium chemicals business, purchasing spodumene feedstock carbonate. The Company aims to establish a Canadian-based from bothchemicals domesticbusiness, suppliers and international lithium purchasing spodumene markets, feedstock including Brazil and Africa and producing a battery grade from both domestic suppliers and international markets, lithium carbonate with the Company’s including Brazil product. and AfricaThis andaligns producing a battery grade lithiumvision carbonate product. This aligns withAtlantic the Company's broader of contributing to the North lithium broader vision contributing to the Conversion North Atlantic lithium supply chain andofclosing the Lithium Gap. supply chain and closing the Lithium Conversion Gap. The project’s economics are highly favourable, even project's economics are highly favourable, even with withTheconservative price assumptions. The refinery is conservative price assumptions. The refinery is economically economically viable with a pre-tax Net Present Value viable with a pre-tax Net Present Value (NPV) of approximately of around 23.5%. The payback period is estimated at 3.5 years. The financial model is built on cautious price forecasts US$779 million, per using tonne an 8% for discount rate, and concentrate a pre-tax of US$1,170 spodumene Internaland RateUS$20,970 of Return (IRR) around The payback (SC6) per oftonne for23.5%. battery-grade lithium period is estimated at 3.5(LCE). years. The financial modelbelieve is built onthey carbonate equivalent LU7’s directors cautious price forecastsbasis of US$1,170 per tonne for spodumene have a reasonable for using the assumed price in concentrate (SC6) and US$20,970 per tonne for battery-grade the study of US$20,970 per tonne for battery grade lithium lithium carbonate equivalent (LCE). LU7's directors believe carbonate. Key operational assumptions include 86% plant they have a reasonable basis for using the assumed price in availability and 88% lithium recovery. At full production the study of US$20,970 per tonne for battery grade lithium capacity, the project is expected to generate approximately carbonate. Key operational assumptions include 86% plant US$383 million in annual revenue, with costs totalling availability and 88% lithium recovery. At full production around million, leading an annual EBITDA of is expected to to generate approximately capacity,US$236 the project approximately US$147 million and a gross margin US$383 million in annual revenue, with costs totalling aroundof in the region of 38%. theEBITDA NPV atof approximately an 8% discount US$236 million, leadingPost-tax, to an annual rate is estimated at approximately US$501 US$147 million and a gross margin of in the regionmillion. of 38%.The capital theatproject estimated Post-tax,cost the for NPV an 8%isdiscount rateatisUS$494 estimatedmillion, at which includesUS$501 a contingency of capital US$68cost million. capital approximately million. The for theThe project is estimated at US$494 which includes a contingency cost estimate is basedmillion, on advanced design specifications of US$68 million. Lithium The capital cost estimate is based robust on from the Jiangsu Refinery model, ensuring advancedplanning design specifications from the factors Jiangsuhighlight Lithium the financial and projection. These Refinery strong model, financial ensuring viability, robust financial planning and project’s even under conservative projection. These factors highlight the project's strong financial pricing conditions. viability, even under conservative pricing conditions. 7000 100,000 6000 85,000 Price (USD$ / tonne) Price (USD$ / tonne) Figure 1: Lithium Universe Bécancour Refinery Estimated Pre-tax Cashflows 5000 4000 3000 1000 1000 70,000 55,000 40,000 25,000 15,000 Universe PFS Price: US$1,170 0 Universe PFS Price: US$20,970 0 Figure 2: Spodumene SC6 historical prices vs LU7 Forecast Figure 2: Spodumene SC6 historical prices vs LU7 Forecast Figure 3: BG Lithium Carbonate historical prices vs LU7 Forecast Figure 3: BG Lithium Carbonate historical prices vs LU7 Forecast Page 2 Quarterly Report | December 2024 | 2 Lithium Universe Limited | ASX: LU7 Figure 4: Model of the Lithium Universe Bécancour Lithium Refinery Counter-Cyclical Strategy Lithium Universe employs a counter-cyclical strategy, developing projects during market downturns to position for recovery. Despite recent price declines due to oversupply, the company remains confident in strong longterm lithium demand driven by EV and energy storage growth. Although LU7 demonstrates viability even in low price environments, LU7 aims to capitalize on future price recovery and market opportunities. Closing the Lithium Conversion Gap Over 90% of LFP battery manufacturing is concentrated outside North America, but the region is expanding rapidly. By 2028, nearly 1,000 GWh of capacity will be added, requiring 850,000t of LCE annually. With no current lithium converters, efforts are underway to reduce reliance on foreign supply chains. Quarterly Report | December 2024 | 3 Lithium Universe Limited I Quarterly Report I September 2024 Lithium Universe Limited | ASX: LU7 Quebec Trans Atlantic Lithium Conversion Centre Québec is emerging as a strategic trans-Atlantic hub for Quebecconversion, Trans Atlantic Lithium Conversion Centrelowlithium benefiting from local feedstock, cost green and proximityhub to key Québec is energy emerging(US$0.026/kWh), as a strategic trans-Atlantic for lithium regions. Thebenefiting US Inflation Act, European lithium conversion, fromReduction local feedstock, low-cost green energy (US$0.026/kWh), and proximity to key lithium Battery Passport, and significant tariffs placed on raw maregions. Thecreate US Inflation Reduction European Battery terial imports opportunities for Act, Québec to supply the Passport, and significant tariffs placed on raw material imports growing North American market. create opportunities for Québec to supply the growing North American market. Figure 5: Electricity prices in Trans-Atlantic Region Technology Challenges and Failures Technology Challenges and Failures Replicating Jiangsu Success LU7North addresses theLithium recurring issues by western The American project wentfaced bankrupt in 2015, lithium conversion projects worldwide, offering a robust producing only 109 tonnes of lithium carbonate despite solution the industry's common startup problems. The CAD 250tomillion invested. Nemaska Lithium also failed North American Lithium project went bankrupt in 2015, after spending CAD 411 million. The Tianqi Kwinana and producing Kemerton only 109 tonnes lithium carbonate despite Albemarle plants inofAustralia struggled with unCAD 250 million invested. Nemaska Lithium also failed proven technologies and design issues, leading to delays aftercost spending CADThe 411 million. Tianqileach Kwinana and and overruns. alkalineThe pressure process Albemarle Kemerton plants in Australia struggled with remains unreliable due to severe operational challenges. unproven technologies and design issues, leading to delays and cost overruns. The alkaline pressure leach process remains unreliable due to severe operational challenges. Replicating Jiangsu Success 2012,the the17,000 17,000tpa tpaJiangsu Jiangsu Lithium Lithium Carbonate Carbonate Plant, InIn2012, Plant, engineered by Hatch Ltd. under Iggy Tan and Dr. engineered by Hatch Ltd. under Iggy Tan and Dr. Jingyuan Jingyuan world's largest lithium refinery, Liu, becameLiu, thebecame world’s the largest lithium refinery, exceeding exceeding design capacity.The Company's strategy to design capacity. The Company’s strategy to mitigate techmitigate technology risks involves same flow nology risks involves using the sameusing flowthe sheet, equipsheet, equipment, and suppliers that were successfully ment, and suppliers that were successfully implemented at the Jiangsu Lithium Carbonate Plant.this By atimplemented the Jiangsu Lithium Carbonate Plant. By replicating replicating this proven approach, the Company proven approach, the Company minimizes operational unminimizesand operational and ensures reliable certainties ensures uncertainties reliable performance, leveraging performance, leveraging established processes and established processes and trusted suppliers to deliver contrusted suppliers deliver consistent results in new sistent results in newtoprojects. projects. Page 4 Quarterly Report | December 2024 | 4 Replicating Jiangsu Success In 2012, the 17,000 tpa Jiangsu Lithium Carbonate Plant, engineered by Hatch Ltd. under Iggy Tan and Dr. Jingyuan Liu, became the world's largest lithium refinery, exceeding design capacity.The Company's strategy to mitigate technology risks involves using the same flow sheet, equipment, and suppliers that were successfully implemented at the Jiangsu Lithium Carbonate Plant. By replicating this proven approach, the Company minimizes operational uncertainties ensures reliable Lithium Universeand Limited | ASX: LU7 performance, leveraging established processes and trusted suppliers to deliver consistent results in new projects. Figure 5: Galaxy Jiangsu Lithium Carbonate Plant Figure 6: Galaxy Jiangsu Lithium Carbonate Plant Page 5 Quarterly Report | December 2024 | 5 Lithium Lithium Universe Limited Quarterly Report September 2024 LithiumUniverse UniverseLimited LimitedI IIQuarterly QuarterlyReport ReportI IISeptember September2024 2024 Lithium Universe Limited | ASX: LU7 LithiumDream Dream Team Lithium Lithium Team LithiumDream DreamTeam Team The Company is comprised of lithium industry leaders The isisiscomprised ofoflithium industry leaders The Company comprised lithium industry leaders TheCompany Company comprised lithium industry leaders known for rapidly developingof and operating Australian known for rapidly developing and operating Australian known for rapidly developing operating Australian known forlithium rapidlyextraction developing and operating operations Australian hard rock andand downstream hard rock lithium extraction and downstream operations hard rock lithium extraction and downstream operations hard rock lithium extraction and downstream operations in China. In an emerging industry like lithium, where reinin InIn industry like where China. emerging industry like lithium, where inChina. China. Inanan anemerging emerging industry likelithium, lithium, where taining experienced personnel is increasingly challengretaining experienced personnel is increasingly retaining personnel retaining experienced personnela is is increasingly increasingly ing, Lithiumexperienced UniverseUniverse has assembled proven challenging, Lithium has assembled aexpertise challenging, Lithium Universe has assembled aaproven proven challenging, Lithium Universe has assembled proven team, including Mr. Iggy Tan (Executive Chairman), Mr. Iggy Tan, Iggy IggyTan, Tan, Chairman Chairman Chairman Ex Galaxy MD Ex ExGalaxy GalaxyMD MD Terry Stark Stark Terry Stark Head ofTerry Mining Head of Head ofMining Mining Ex Galaxy GM Ops Ex ExGalaxy GalaxyGM GMOps Ops Roger Pover Roger RogerPover Pover Head of Li Processing Head of Li Head of LiProcessing Processing Ex Galaxy Plant Manager Ex ExGalaxy GalaxyPlant PlantManager Manager expertise expertise team, including Mr. Iggy Tan (Executive expertiseteam, team,including includingMr. Mr.Iggy IggyTan Tan(Executive (Executive Patrick Scallan (Non-Executive Director), Dr. Jingyuan Liu Chairman), Mr. Patrick Scallan (Non-Executive Chairman), Director), Chairman),Mr. Mr.Patrick PatrickScallan Scallan(Non-Executive (Non-ExecutiveDirector), Director), (Non-Executive Director), Mr. John Loxton (Head of LithDr. Jingyuan Liu (Non-Executive Director), Mr. John Dr. Dr. Jingyuan Jingyuan Liu Liu (Non-Executive (Non-Executive Director), Director), Mr. Mr. John John ium Refinery), Terry Refinery), Stark (Head ofTerry Mining), and Mr. Loxton (Head Mr. Stark (Head Loxton (Head of Lithium Refinery), Mr. Terry Stark (Head Loxton (HeadofMr. ofLithium Lithium Refinery), Mr. Terry Stark (Head ofof Mining), and Mr. Roger Pover (Head of Processing), all Roger Pover (Head of Processing), all of whom bring exof Mining), Mining), and and Mr. Mr. Roger Roger Pover Pover (Head (Head of of Processing), Processing), all all ofof bring extensive lithium industry expertise tensive lithium industry expertise and experience. whom bring extensive lithium industry expertise and ofwhom whom bring extensive lithium industry expertiseand and experience. experience. experience. Dr Jingyuan Liu Dr DrJingyuan Jingyuan Liu DirectorLiu Director Director Ex Galaxy GM Technology Ex ExGalaxy GalaxyGM GMTechnology Technology Patrick Scallan Patrick Scallan Patrick Scallan Director Director Director EX Talison GM EX EXTalison TalisonGM GM John Loxton John Loxton John Loxton Head of Li Refinery Head Li Head of LiRefinery Refinery Ex Hatch Liof Carb Plant Ex ExHatch HatchLi LiCarb CarbPlant Plant John Sobolewski John JohnSobolewski Sobolewski Chief Financial Officer Chief Financial Officer Chief Financial Officer Ex Galaxy CFO & Company Secretary Ex ExGalaxy GalaxyCFO CFO&&Company CompanySecretary Secretary Bécancour Industrial Park Bécancour Park Bécancour Industrial Park BécancourIndustrial Industrial Park LithiumUniverse Universehas hasexecuted executedanan option agreement Lithium option agreement onon aonaa Lithium Universe has executed an option agreement Lithium Universe has executed an option agreement on a key property within the BécancourWaterfront WaterfrontIndustrial Industrial key within the Bécancour key property within the Bécancour Waterfront Industrial keyproperty property within the Bécancour Waterfront Industrial Park situated on the St Lawrence River between MontrePark situated on the St Lawrence River between Park situated on the St Lawrence River between Park situated on the St Lawrence River between al and Québec City. The site, strategically located near a Montreal and Québec City. The site, strategically located Montreal and Québec City. The site, strategically located Montreal and Québec City. The site, strategically located major highway and served by Canadian NationalNational Railway, near and served byby Canadian near major highway and served Canadian National nearaaamajor majorhighway highway and served by Canadian National offers year-round access to the Port of Bécancour, featurRailway, Railway, offers year-round access the Port Railway,offers offersyear-round year-roundaccess accesstoto tothe thePort Portofof of ing a deep-water pier and multiple berths, making it ideal Bécancour, featuring a deep-water pier and multiple Bécancour, Bécancour, featuring featuring aa deep-water deep-water pier pier and and multiple multiple for the proposed Lithium Carbonate Refinery. Lithium berths, berths, making ideal for the proposed berths,making makingitititideal idealfor forthe theproposed proposed Lithium Lithium Carbonate Refinery. Carbonate CarbonateRefinery. Refinery. Funding Strategy Funding Funding Strategy FundingStrategy Strategy Funding plans for the capital costs involve inviting one or Funding plans for involve two strategic partners to join costs as 49% equityinviting partners at or the Funding plans for the capital costs involve inviting one or Funding plans forthe thecapital capital costs involve invitingone one or two strategic partners to join as 49% equity partners at project level. The Company is also in the process of aptwo two strategic strategic partners partners to to join join as as 49% 49% equity equity partners partners at at the project level. The Company is also in the process of pointing a debt advisor and has already initiated discusthe project level. The Company is also in the process of the project level. The Company is also in the process of appointing aaadebt advisor already sions with financial Thehas Company willinitiated actively appointing debt advisor and has already initiated appointing debtinstitutions. advisorand and has already initiated discussions with financial institutions. The Company will engage with with financial institutions and government agendiscussions financial institutions. The will discussions with financial institutions. The Company Company will actively engage with financial institutions and cies to secure project financing by presenting the findings actively engage with financial institutions and actively engage with financial institutions and government agencies toto project financing from the Preliminary Feasibility Study (PFS). government agencies secure project financing government agencies tosecure secure project financingbyby by presenting presenting the findings from the Preliminary Feasibility presentingthe thefindings findingsfrom fromthe thePreliminary PreliminaryFeasibility Feasibility Study Study (PFS). Study(PFS). (PFS). Figure 6: The Company's refinery site within the Bécancour Industrial Facility situated Figure The Company's within the Bécancour Industrial Facility situated Figure7:6: 6:The TheCompany’s Company'srefinery refinery site within thethe Bécancour Industrial Facility situated Figure refinerysite site within Bécancour Industrial Facility between Montreal and Québec City. between Montreal and City. betweenbetween MontrealMontreal andQuébec Québec City. situated and Québec City. Page Page Page666 Quarterly Report | December 2024 | 6 The design of the Bécancour Lithium Carbonate Plant will be modelled afterRefinery the proven Jiangsu facility, with Bécancour Lithium primaryPlant targeted operational enhancements. The design of the Bécancour Lithium The Carbonate objective of this engineering studyJiangsu is to develop will be modelled after the proven facility,awith Bécancour Lithium Refinery comprehensive design and cost estimation for a targeted operational enhancements. The primary standalone lithium plant The designofofbattery-grade theengineering Bécancour Lithium Plant objective this studycarbonate isCarbonate to develop a withwill an annual capacity of up to 18,270 tons per annum be modelled after the proven Jiangsu facility, with targeted comprehensive design and cost estimation for a (tpa). This facility will be engineered to process operational enhancements. The primary objective of this standalone battery-grade lithium carbonate plant with spodumene concentrate sourced globally. The required engineering study isoftoup develop a comprehensive design an annual capacity to 18,270 tons per annum feedstock for the plant will be approximately 140,000 and cost estimation for a standalone battery-grade (tpa). This facility will be engineered to process lithium tpa at 6% Li O grade however, the plant of has carbonate plant with an annual capacity upbeen torequired 18,270 2concentrate spodumene sourced globally. The designed to receive grades as low as 5% Li O. tons per annum (tpa). feedstock for the plant will be approximately2 140,000 Typically, spodumene tpa at 6% industry-supplied Li2O grade however, the plant averages has been around 5.5% Li O. 2 designed to receive grades as low as 5% 2O. Table 1.Bécancour Lithium Refinery KeyLiCriteria Typically, industry-supplied spodumene averages Bécancour Lithium Refinery Key Criteria around 5.5% Li2O. Inputs Bécancour Refinery Key Criteria EstimatedLithium Production Battery Grade Lithium Carbonate Inputs Assumed Spodumene Feedstock at 5.5% to 6% Li2O Estimated Production Steady State RecoveryBattery Grade Lithium Carbonate The design of the Bécancour Lithium Carbonate Plant will be modelled afterRefinery the proven Jiangsu facility, with Bécancour Lithium The primary targeted operational enhancements. Lithium Universe | ASX: LU7 The design of the Bécancour LithiumLimited Carbonate Plant objective of this engineering studyJiangsu is to develop will be modelled after the proven facility,awith comprehensive design and cost estimation for a targeted operational enhancements. The primary This facilityofwill engineered tocarbonate process spodumene standalone battery-grade lithium planta with objective this be engineering study is to develop concentrate sourced globally. The required feedstock for an annual capacity of up to 18,270 tons per annum comprehensive design and cost estimation for a (tpa). will be engineered to process the plantThis willfacility be approximately 140,000 tpa plant at 6%with Li2O standalone battery-grade lithium carbonate spodumene concentrate sourced globally. The required grade however, the plant been tons designed to receive an annual capacity of up has to 18,270 per annum feedstock for the plant will be approximately 140,000 grades as low as 5% Li2O. Typically, industry-supplied (tpa). This facility will be engineered to process tpa at 6% Li O gradearound however, theLi2O. plant has spodumene averages 5.5% 2concentrate spodumene sourced globally. Thebeen required designed to receive grades as low as 5% Li feedstock for the plant will be approximately2O. 140,000 Typically, spodumene tpa at 6% industry-supplied Li2O grade however, the plant averages has been around 5.5% Li O. 2 designed to receive grades as low as 5% Li O. 2 Typically, industry-supplied spodumene averages around 5.5%Approximate Li2O. Volume (t/year) Assumed Spodumene Feedstock at shutdowns) 5.5% to 6% Li2O Steady State Availability (inc annual Steady State Recovery Ramp up to full rate Steady State Availability (inc annual shutdowns) Ramp up to full rate 16,748 (5.5% Feed) - 18,270 (6% Feed) 140,000 Approximate Volume (t/year) 16,748 88% (5.5% Feed) - 18,270 (6% Feed) 140,000 86% 88% 3 years 86% 3 years Figure 7: Lithium Universe Bécancour Process Flow Sheet Page 7 Figure 7: Lithium Universe Bécancour Process Flow Sheet Figure 8: Lithium Universe Bécancour Process Flow Sheet Page 7 Quarterly Report | December 2024 | 7 Lithium Universe Limited I Quarterly Report I September 2024 Lithium Universe Limited | ASX: LU7 Plant Layout Plant Layout An overall overall site sitelayout layoutplan planwas wasdeveloped developedwhere wherethe themain facilities and major piecespieces of equipment are identified, main facilities and major of equipment are i.e. the spodumene stockpile,feed kilns, driers, cooler, identified, i.e. thefeed spodumene stockpile, kilns, ball driers, mill, belt process tanks andand mill, beltcooler, filters,ball process tanksfilters, and bins, reagent tanks reagent tanks and thickeners, Area 40 includand bins, thickeners, Area 40bins, and 60 process building 60 process building including amenities, laboratory ing amenities, laboratory and office, lithium product and storoffice,sodium lithiumsulphate product storage, main sodium sulphate air comage, substation, storage,building main substation, air compressor building and pressor and maintenance and stores. The layout maintenance and stores. The layout defines the roads required for delivery of raw materials and shipment of defines theand roads required The for delivery of raw materials products co-products. main piping racks for and of of products co-products. Thepiping mainand piptheshipment reticulation utilities,and reagents, process ing racks for the reticulation of utilities, reagents, process electrical cable trays have been defined on the layout. piping and electrical cablesuch traysashave definedare on the All gas fired equipment kilnsbeen and driers layout. Alloutside gas fired as kilns driers are located of equipment buildings tosuch reduce risksand associated located outside of buildings to reduce risks associated with use of natural gas. Most of the plant areas are inwith use of natural gas.asMost plant areas of arethe in heated heated buildings partofof the a winterization buildings as part of a winterization of the process. process. Figure 9: Lithium Universe Bécancour Refinery Plant Layout Figure 8: Lithium Universe Bécancour Refinery Plant Layout OPERATINGCost COST ESTIMATE Operating Estimate tonne of LC, compared to approximately US$3,976 per approximately US$3,976 per tonne in Bécancour. tonne in Bécancour. However, 25% tariffs tariffs However,with withthe theUS US and and Canada imposing 25% ononChinese-sourced 2024, Chinese-sourcedlithium lithium chemicals chemicals starting starting in 2024, the to around around theeffective effectiveconversion conversioncost costinin China China will rise to US$4,812(comparison (comparisonbasis) basis) tonne of LC, US$4,812 perper tonne of LC, whilewhile BéBécancour operational remain at cancour operational estimates estimates remain at approximately approximately This cost why advantage US$3,976. This costUS$3,976. advantage underscores the comunderscores why the company believes Québec hasa the pany believes Québec has the potential to emerge as key potential to emerge as a key conversion hub for the transconversion hub for the trans-Atlantic region. Atlantic region. The operating on the balancebalance The operatingcost costis based is based on mass the mass usage of electricity. natural gas, sulphuric usage of electricity, natural gas, sulphuricacid, acid,sodium sodium carbonate, neutralising agents, and various reagents carbonate, neutralising agents, and various reagents and consumables Jiangsu operating and consumablesextracted extractedfrom from Jiangsu operating experience. experience. The operating costs at the Bécancour site are approximately tonneBécancour of lithium carbonate The operatingUS$3,976 costs atper the site are (Li2CO3) benefiting from inexpensive power approximately US$3,976 per tonne ofrenewable lithium carbonate from Hydrobenefiting Québec, from costing approximately US$0.026 (Li2CO3) inexpensive renewable power per kWh. In comparison, the average operatingUS$0.026 costs from Hydro Québec, costing approximately in China are around US$3,250 per tonne of Li CO per kWh. In comparison, the average operating in 2 costs 3, Other wit