/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
Jiangsu Plant produces 99.9% Li2CO3 purity lithium carbonate (EV Grade®)
EV Grade® used in electrolytes solution in lithium-ion batteries
EV Grade® commands 20%-30% price premium to battery grade lithium carbonate
Provides potential to extend market base to electrolyte manufacturers
Battery Grade (99.5% purity) lithium carbonate will continue to make up
bulk of Galaxy's sales
PERTH, Australia, March 8, 2013 /CNW Telbec/ - Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the Company") is pleased to announce that it has achieved commercial production of
99.9% Li2CO3 purity lithium carbonate at its wholly-owned Jiangsu Lithium Carbonate
Plant ("Jiangsu Plant") in China.
The Jiangsu Plant was originally designed to produce 17,000 tpa of
battery grade (minimum 99.5% Li2CO3 purity) lithium carbonate product making it the largest battery grade
producer in the world. Recent adjustments and improvements to the
process have allowed the Jiangsu team to produce a higher specification
product of 99.9% purity.
Lithium carbonate of minimum 99.9% purity, registered by Galaxy as EV Grade®, is used specifically in the manufacture of electrolyte solution for
lithium-ion batteries. Up until now, the Jiangsu Plant has produced
battery grade (99.5% Li2CO3) lithium carbonate, which is used in the cathode part of the batteries.
Lithium-ion batteries are used in electric and hybrid vehicles and
electronics like PDAs, mobile phones and laptops.
EV Grade® currently accounts for 5-10% of the overall battery grade lithium
carbonate market but commands a price premium of 20%-30% to battery
grade (99.5% purity) lithium carbonate product due to the higher purity
specification and limited supply globally.
While the main future demand for lithium carbonate will come from
cathode producers seeking 99.5% purity product, Galaxy Managing
Director Iggy Tan said the capability to produce higher purity grades
gives the Company more marketing options.
"We wanted to become a market leader in EV Grade® production, so I'm very pleased to have achieved this quality beyond
the plant design. The ability to produce EV Grade® product extends Galaxy's potential customer base, allowing the Company
to tap into growth in both the cathode and electrolyte markets.
"Although it's a smaller market, the higher price EV Grade® makes it a valuable product to add to our mix, and we will determine
how much of each product to produce based on demand levels from our
customers," Mr Tan added.
About Galaxy (ASX: GXY)
Galaxy Resources Ltd ("Galaxy") is an Australian-based global lithium
company with lithium production facilities, hard rock mines and brine
assets in Australia, China, Canada and Argentina. The Company is an
integrated lithium mining, chemicals and battery company listed on the
Australian Securities Exchange (Code: GXY) and is a member of the
S&P/ASX 300 Index.
Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western
Australia where it mines lithium pegmatite ore and processes it on site
to produce a spodumene concentrate and tantalum by-product. At full
capacity, Galaxy will process 137,000 tpa of spodumene concentrate
which will feed the Company's wholly-owned Jiangsu Lithium Carbonate
Plant in China's Jiangsu province. The Jiangsu Plant has commenced
production and will produce 17,000 tpa of battery grade lithium
carbonate, the largest producer in the Asia Pacific region and the
fourth largest in the world.
Galaxy is also advancing plans to develop the Sal de Vida (70%) lithium
and potash brine project in Argentina situated in the lithium triangle
(where Chile, Argentina and Bolivia meet) which is currently the source
of 60% of global lithium production. Sal de Vida has excellent promise
as a future low cost brine mine and lithium carbonate processing
facility. The Company also owns the James Bay (100%) Lithium Pegmatite
Project in Quebec, Canada.
Lithium compounds are used in the manufacture of ceramics, glass,
electronics and are an essential cathode material for long life
lithium-ion batteries used to power e-bikes and hybrid and electric
vehicles. Galaxy is bullish about the global lithium demand outlook and
is positioning itself to achieve its goal of being involved in every
step of the lithium supply chain.
Caution Regarding Forward Looking Information.
This document contains forward looking statements concerning Galaxy.
Forward-looking statements are not statements of historical fact and
actual events and results may differ materially from those described in
the forward looking statements as a result of a variety of risks,
uncertainties and other factors. Forward-looking statements are
inherently subject to business, economic, competitive, political and
social uncertainties and contingencies. Many factors could cause the
Company's actual results to differ materially from those expressed or
implied in any forward-looking information provided by the Company, or
on behalf of, the Company. Such factors include, among other things,
risks relating to additional funding requirements, metal prices,
exploration, development and operating risks, competition, production
risks, regulatory restrictions, including environmental regulation and
liability and potential title disputes.
Forward looking statements in this document are based on Galaxy's
beliefs, opinions and estimates of Galaxy as of the dates the forward
looking statements are made, and no obligation is assumed to update
forward looking statements if these beliefs, opinions and estimates
should change or to reflect other future developments.
Not For Release in US
This announcement has been prepared for publication in Australia and may
not be released in the U.S. This announcement does not constitute an
offer of securities for sale in any jurisdiction, including the United
States, and any securities described in this announcement may not be
offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of
1933, as amended. Any public offering of securities to be made in the
United States will be made by means of a prospectus that may be
obtained from the issuer and that will contain detailed information
about the company and management, as well as financial statements.
EV Grade® is a registered trademark of Galaxy Resources Limited
SOURCE: Galaxy Resources Limited
For further information:
Galaxy Resources Ltd
Tel (office): +61 (0)8 9215 1700
Tel (office): +61 (0)8 9485 8888
Tel (mobile): + 61 (0)488 400 248