EV Metals Group Outlines Plans for Development of the Battery Chemicals Complex In Yanbu Industrial City, KSA

AL KHOBAR, 11 October 2021: EV Metals Group plc (EVM) today outlined plans for the development of the Battery Chemicals Complex in Yanbu Industrial City following the Conditional Investment Agreement signed between the Royal Commission for Jubail and Yanbu (RCJY) and EV Metals Arabia Co. for Industry (EVM Arabia).

EVM plans to develop and expand the Battery Chemicals Complex in stages comprising a Lithium Chemicals Plant, a Nickel Chemicals Plant and a Cathode Active Materials Plant strategically located in Yanbu Industrial City for domestic and international markets.

The Battery Chemicals Complex will produce high purity chemicals containing lithium, nickel, cobalt, manganese and other metals for high energy density cathode active materials required in rechargeable lithium-ion batteries for electric vehicles and renewable energy storage.

“The allocation and use of land at Yanbu under the Conditional Investment Agreement with RCJY is a major milestone for EVM and EVM Arabia”, states Eng. Abdullah S. Busfar, Chairman of EVM. “The development and expansion of the Battery Chemicals Complex will be a global first for the Kingdom of Saudi Arabia, creating a unique integrated processing facility.”

“This will position the Kingdom of Saudi Arabia as a strategic global hub for midstream and downstream processing of critical raw materials to produce high purity chemicals for high energy density cathode active materials for domestic and export sales to original equipment manufacturers and battery cell manufacturers in growth markets in Europe and North America seeking independent supply chains.”

“We have also advanced the development of the Saudi supply chain with applications for exploration licenses over areas with identified critical raw materials containing lithium, nickel, cobalt, copper, platinum group metals and rare earth elements.”

“The Battery Chemicals Complex is a strategic project enabler for the industrial clusters of Vision 2030 which provides development of manufacturing plants for production of battery cells and electric vehicles in the Kingdom.”

“Eng. Zaidan Yousef, Director General of Investment Development Division of Yanbu stated that “We are happy to host the Battery Chemicals Complex which will provide the strategic link between the minerals and chemicals industries in the City.”

“The localization of Battery Chemicals manufacturing in Yanbu Industrial City will supply the fast growing global demand of electric cars and renewable energy storage, while unlocking new opportunities for diversification of the petrochemical industry and petrochemicals companies, and thus achieve objectives of the Kingdom’s 2030 Vision.”

Michael Naylor, Managing Director of EVM, comments “The first stage of the Battery Chemicals Complex will comprise of two processing trains each with a capacity to produce 25,000 tonnes per annum (tpa) of high purity lithium hydroxide monohydrate (LHM). This represents a total production of 50,000 tpa of LHM from the processing of 330,000 tpa of spodumene concentrate containing 6% lithium oxide (SC6).”

“We are progressing discussions and negotiations to acquire SC6 under project and off take agreements with lithium companies in Western Australia, the largest producer of SC6 in the world and a politically stable jurisdiction with low sovereign risk.”

“EVM plans to invest over US$800 million (SAR3 billion) in the construction and commissioning of the first two trains for production of LHM in the Lithium Chemicals Plant.”

“Amec Foster Wheeler Australia, a subsidiary of Wood plc our engineering and technical partners, commenced front end engineering and design (FEED) for the first two trains of LHM in July. FEED is scheduled for completion in Q4 2022 to enable construction to commence in Q1 2023, creating employment for 750 personnel during construction and initially 450 permanent positions in operations.”

“Commissioning and ramp up are scheduled for 2024/25. Strategic market studies for EVM by Benchmark Minerals Intelligence report growing structural deficits in global supply of LHM from 2025/26.”

“The Conditional Investment Agreement provides for the allocation and use of 1,270,000 square meters (127 hectares) of land for the Battery Chemicals Plant, a larger area of land than first proposed. The initiative of the RCJY has enabled EVM to plan for the expansion of the Lithium Chemicals Plant with the addition of a further two trains to increase production to 100,000 tpa of LHM. It has also enabled EVM to provide for three processing trains in the Nickel Chemicals Plant each with a capacity to produce over 100,000 tpa of high purity nickel sulphate.”

“The development of Battery Chemicals Complex in the Kingdom of Saudi Arabia arises from the agreement between National Industrial Development Centre and EVM signed in December 2020 for the development of the Saudi supply chain for critical raw materials for rechargeable batteries for electric vehicles and renewable energy storage within the framework of Vision 2030.”

“We look forward to working with RCJY and NIDC to fast track the implementation of our plans.”

For media enquiries
Hannah Newberry, Communications and Media Manager:
E hannah.newberry@evmetalsgroup.com

For EVM enquiries
Michael Naylor, Managing Director, EV Metals Group
E michael.naylor@evmetalsgroup.com

The Conditional Investment Agreement was executed at a signing ceremony on 26th September 2021, attended by Eng. Zaidan Yousef, Director General of Investment Development Division, Eng. Faisal Al Seraihi, Industrial Investment Director, Eng. Malik Al Rashedi, Business Development Director and Eng. Ayman Al Mohammadi, Industrial Investment Specialist from Royal Commission for Yanbu, Eng. Mr Mohammed Bajba, Executive Director and Board Member of EV Metals Arabia Co for Industry, Mr Abdulrahman Al Alesayi, Director of EV Metals Group plc and Eng. Mahmoud Al-Asmari, Director of Minerals Metals, National Industrial Development Centre.

EV Metals Group plc (EVM) is building a global battery chemicals and technology business based on the development of the Battery Chemicals Complex in the Kingdom of Saudi Arabia.

EVM is focused on the development of the Battery Chemicals Complex to be become a global leader in the production high purity chemicals containing lithium, nickel, cobalt, manganese and other metals for high energy density cathode active materials required in rechargeable lithium-ion batteries for electric vehicles and renewable energy storage.

EV Metals Arabia Co. for Industry (EVM Arabia), the operating subsidiary of EVM in the Kingdom, will develop the Battery Chemicals Complex in stages comprising a Lithium Chemicals Plant, a Nickel Chemicals Plant and Cathode Active Materials Plant in Yanbu Industrial City as a strategic location for domestic and international markets.

Upstream integration of the of the supply chain through ownership of mineral resources containing critical raw materials for production of intermediate products containing lithium, nickel, cobalt, manganese and other metals for downstream processing at the Battery Chemicals Complex are integral to the global business model and strategy of EVM.

EVM has applications for exploration licenses in process under the new Mining Investment Law of the Kingdom of Saudi Arabia targeting areas with potential for critical raw materials containing lithium, nickel, cobalt, manganese, platinum group metals and rare earth elements. Several of the exploration licenses are close to being granted to RIWAQ Al Mawarid for Mining, a subsidiary of EVM in the Kingdom of Saudi Arabia.

The Battery Chemicals Complex will initially acquire intermediate feedstock such as spodumene concentrate containing lithium from established producers with transparent and ethical supply chains such as those in Western Australia, the world’s largest producer of spodumene, until the Saudi supply chain is developed.

EVM owns 100% of the Range Well Nickel Cobalt Resources through EVM Nickel in Western Australia for mining and processing to produce mixed hydroxide precipitate containing nickel, cobalt and manganese (MHP) at an MHP Plant in the Mid West Region of Western Australia for downstream processing at the Battery Chemicals Complex until the commencement of production from the Saudi supply chain.

EVM has completed engineering studies for the development of the Nickel Chemicals Plant in the Battery Chemicals Complex to produce high purity nickel sulphate, cobalt sulphate and manganese sulphate from on the downstream processing of MHP from the MHP Plant.

EVM has offices in Al Khobar, Saudi Arabia, Perth, Western Australia and London, United Kingdom. For further information on EVM please visit www.evmetalsgroup.com.

The Royal Commission for Jubail and Yanbu was established in 1975 to plan, promote and manage petrochemical and energy intensive industrial cities in the Kingdom of Saudi Arabia.

Yanbu Industrial City has become the third largest refinery centre in the world. It has also established the largest petroleum transportation port near the Red Sea.

On 22 December 2020 the National Industrial Development Centre (NIDC) and EV Metals Group plc (EVM) signed a non-binding Memorandum of Understanding (MoU) for the development of a Battery Chemicals Complex and a Saudi supply chain in the Kingdom of Saudi Arabia.

The MOU provides for up-stream integration through the development of a Saudi supply chain by exploration for and mining and processing of economic deposits of mineral resources containing critical raw materials including lithium, nickel, cobalt, copper, platinum group metals and rare earth elements for downstream processing at the Battery Chemicals Complex in KSA.

The National Industrial Development Centre (NIDC) is the specialized industrial investment attraction & industrial development organization at the center of the transformation of Saudi Arabia’s industrial sector, creating new industries to diversify the economy and meet vision 2030 ambitions.

The mission of NIDC is to facilitate the growth and diversification of the Kingdom’s manufacturing and industrial base by, among other activities, fostering partnerships between local Kingdom entities and international manufacturers to grow and diversify the Saudi Arabian economy.