Full Circle Lithium Corp. (TSX-V: FCLI) has obtained full ownership of a lithium processing facility that the company was previously leasing for its operations.
On Wednesday, Full Circle said that it put a US$30,000 down payment on the processing facility in Nahunta, Georgia and has entered a binding agreement to purchase the plant for a total of US$500,000.
The company focuses on recycling end-of-life lithium-ion phosphate batteries to produce battery-grade lithium carbonate and processing other battery materials.
“Our Georgia facility is key to our business, and we wanted to crystallize the value and have full control of our assets,” said the company’s CEO Carlos Vicens.
The company has refurbished the plant in recent days following its temporary deactivation in 2012.
Georgia lithium processing plant. Photo via Full Circle Lithium
The Georgia facility is capable of processing 2 kilotons of lithium carbonate annually and the company currently has a portfolio of patent-pending lithium technology.
At the end of July, the company announced that it had developed a fire suppressant solution specifically designed to extinguish fires caused by lithium-ion batteries, which can be extremely dangerous and difficult to put out by conventional means.
An August report from Oregon’s market researcher Allied Market Research indicated that the market for lithium-ion batteries would be worth US$18.8 billion by 2032, ascending from its current value of approximately US$5 billion at a significant compound annual growth rate of 14.5 per cent.
Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) is another Toronto-headquartered company that is actively developing a lithium processing plant. The company recently acquired an industrial site in Thunder Bay to build the facility, which is expected to assist with the development of northwestern Ontario’s lithium assets by benefiting producers in the surrounding area.
Full Circle Lithium shares rose by 7.1 per cent Wednesday to $0.60 on the TSX Venture Exchange. As of July 31, the company had approximately $7.4 million in cash.
rowan@mugglehead.com
