Avalon Announces the Commencement of Feasibility Study at Lake Superior Lithium Project, Ontario
Avalon Announces the Commencement of
Feasibility Study at Lake Superior Lithium
Project, Ontario
Toronto, Ontario--(Newsfile Corp. - January 19, 2026) -
Avalon Advanced Materials Inc.
(TSX: AVL)
(OTCQB: AVLNF) ("
Avalon
" or the "
Company
") is pleased to announce the commencement of
Feasibility Study ("FS") engineering for its Lake Superior Lithium Inc. ("LSLi") lithium hydroxide
processing project in Thunder Bay, Ontario, Canada.
Following the successful completion of a Preliminary Economic Assessment ("PEA") in September
2024, Avalon has assembled a highly experienced and integrated engineering team to advance the
project through the FS phase. The contracting process included a comprehensive review of proposals
from multiple qualified firms, culminating in the selection of the most technically aligned and cost-
effective partners for the next stage of project development.
Nordmin Engineering Ltd. ("
Nordmin
") has been engaged as the lead FS consultant, responsible for the
overall project coordination as well as design of the processing plant and site infrastructure in
collaboration with Primero Americas Inc and Krech Ojard & Associates. Complementing Nordmin's role,
Avalon has retained
Metso Corporation,
which previously engaged during the PEA phase and is
already deeply familiar with the project's data and design basis.
Each discipline within the Feasibility Study will be overseen by Qualified Persons under NI 43-101,
ensuring technical continuity and regulatory rigor throughout the FS process. These firms were selected
following a rigorous evaluation and competitive review process, based on their demonstrated technical
excellence, team integration, and relevant experience on the Project. Together, they form a cohesive and
high-caliber engineering consortium with proven success delivering complex lithium projects.
"We are excited to move into the feasibility engineering phase for the Lake Superior Lithium, Project,"
stated Scott Monteith, President & CEO of Avalon. "The Feasibility Study builds on the technical and
commercial groundwork established in the PEA as the project advances toward partnership
engagement and financing readiness. With a strong technical foundation, a highly experienced and
capable in-house Owner's team and a solid funding position, Avalon is well-positioned to deliver the
Feasibility Study in the first half of 2027 and move decisively toward construction readiness. The LSLi
processing facility will position Avalon to play a key role in the emerging North American lithium supply
chain serving EV and energy-storage markets."
"Nordmin Engineering is very pleased to support Avalon in advancing the Feasibility Study for the LSLi
project," said Kurt Boyko, Director, Consulting Engineering of Nordmin Engineering. "This study
represents an important step in demonstrating the potential of a significant project at LSLi, and we're
proud to contribute our technical expertise to its development. We look forward to working closely with
Avalon's team to deliver a high-quality and comprehensive study."
North American electrification and energy-storage markets remain reliant on offshore lithium conversion
capacity, as commercial-scale refining of battery-grade lithium currently occurs largely outside of North
America. Avalon's decision to advance toward a feasibility study marks a meaningful step forward in
positioning LSLi as one of the first lithium refineries in Canada and a prospective contributor to a more
secure North American battery supply chain.
Notably, the feasibility study will include trade-off studies with a comprehensive evaluation of whether
battery-grade lithium hydroxide and/or lithium carbonate represents the optimal final product for the
facility, based on evolving market demand, customer qualification requirements, and downstream
engagement.
In October 2025 the Company closed a C$18.65 million financing and committed to advancing its core
rare earth and lithium assets through updating technical and economic studies. The initiation of a
Feasibility Study for its planned lithium refinery demonstrates the Company's execution on those
commitments, advancing project readiness and supporting ongoing strategic partnership and financing
discussions.
2024 PEA Demonstrated Strong Project Economics
The September 2024 PEA was prepared by DRA Americas Inc. and demonstrated the Project's
compelling economic viability. The PEA considered a design capacity for the annual production of
30,000 tonnes of battery-grade lithium hydroxide (LiOH).
All dollar values in this news release are expressed in Canadian Dollars unless indicated. (USD:CAD =
1.36)
Key Highlights of PEA include:
After-tax Net Present Value ("NPV") of $4.1 billion at 8% discount rate
After-tax Internal Rate of Return ("IRR") of 48% for the 30-year period
Initial Capital Cost $1.2 billion and Total Capital Cost $1.3 billion
All-in Life-of-Project Operating Costs of $13,029/tonne (includes spod. purchased)
Innovative Metso Technology provides an environmentally clean process over conventional lithium
hydroxide processes
Strategically located in historical industrial land with well-established infrastructure
The basis of the PEA is built on the utilization of the innovative Metso lithium hydroxide conversion
technology that is currently being tested. This technology allows for a clean zero-discharge process with
no acid roasting and the production of a by-product that can be used as an industrial building material.
LAKE SUPERIOR LITHIUM HYDROXIDE FACILITY OVERVIEW
Avalon Advanced Materials Inc. owns 100% of the property situated on the north shore of Lake Superior
approximately 13 km northeast of Thunder Bay, at 965 Strathcona Avenue. It was formerly a pulp and
paper facility last owned by Smurfit-Stone.
Figure 1: Location of Lake Superior Lithium Facility
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3386/280763_54af9d7a648f4af3_001full.jpg
METSO PROCESS DESIGN
The plant will utilize Metso's proprietary technologies, which includes calcination, pressure leaching,
conversion, purification through ion exchange (IX), and crystallization before the drying and packaging
processes to ensure the production of high-quality lithium hydroxide monohydrate. Metso's technologies
will enable the creation of a compact, energy-efficient lithium hydroxide production plant with minimal
chemical usage, aiming to produce 30,000 tpa of battery-grade lithium hydroxide monohydrate (LHM).
Infrastructure
The Project benefits from having significant existing infrastructure, enabling accelerated development of
the project.
Roads
The property is accessed via Shipyard Road which intersects Strathcona Avenue. Strathcona Avenue is
linked to the Trans-Canada Highway (Highway 11 / 17) by Spruce River Road just East of the property.
Internal roads for the property will be developed to access all buildings for personnel movement and
commercial deliveries.
Port
An existing deep-water port will provide access to the property via Lake Superior, enabling the products
to reach customers in Ontario and beyond. Plans are in place to refurbish the existing port. An existing
warehouse adjacent to the deep-water port will be utilized for offloading spodumene concentrate from
the Great Lakes freighters. The warehouse will be refurbished and retrofitted with material handling
equipment to receive the spodumene concentrate.
Rail
A CN Rail line runs along the property dead ending just east of the property. A spur from the rail line
currently enters from the northeast corner. The rail spur splits into multiple spurs and enters the existing
warehouse adjacent to the deep-water port. Additional spurs will be added to allow for spodumene
concentrate offload and analcime load out. The existing spurs entering the warehouse will require
refurbishment. Rail will be the primary method used for the delivery of spodumene concentrate when the
lithium mines in the region come online in the years to come. Rail will also be utilized to transport
reagents to site and byproducts from site.
Spodumene Concentrate Storage
After being offloaded the spodumene concentrate will be conveyed from the rail and deep water port
facilities to a spodumene concentrate storage building. The facility will provide dry storage feed buffering
for management of feed material and inventories, ensuring stable continuous operation of the process.
Fresh Water
Fresh water is required for the process, a freshwater intake is envisioned in Lake Superior.
Potable Water and Sewage
The property is serviced by Thunder Bay municipal sewage and potable water utilities.
Other Utilities
Two 115kVA power lines run adjacent to the property to the north. An electrical substation will be
installed to connect to the grid power and provide electricity to the process. Natural gas is available on
site and will be primarily used for heating in the calciner process, and for building area heating.
Analcime Storage
A by-product, mix of Analcime and calcium carbonate will be produced from the process. The by-product
material will be dried and conveyed to the analcime storage building. The Analcime material can be
loaded onto railcars and shipped externally to customers to be used in industrial applications and
construction material such as concrete additive.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian critical minerals company advancing the supply of
materials essential for Canada's future. The Company is focused on developing strategic assets that
support secure, domestic supply chains and long-term economic growth. Avalon is advancing the
Nechalacho Rare Earth Elements and Zirconium Project in the Northwest Territories, which contains all
light and heavy rare earth elements, as well as yttrium, zirconium, tantalum, and niobium-critical minerals
used in advanced technologies across the communications, defense, clean tech, and energy sectors.
The Company is also focused on vertically integrating the Ontario lithium supply chain through the
development of Lake Superior Lithium Inc., Ontario's first midstream lithium processing facility, located
in Thunder Bay. This facility will serve as a vital link between northern Ontario's lithium resources and the
growing EV battery manufacturing base in southern Ontario and North America. Through a joint venture
with SCR Sibelco NV, Avalon is advancing the Separation Rapids Lithium Project near Kenora, Ontario,
as well as continuing exploration at its Snowbank lithium and Lilypad lithium-cesium deposits.
For further information regarding Avalon Advanced Materials Inc., please visit
www.avalonadvancedmaterials.com
, or call 416-364-4938.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, but is not limited to statements that the
Company's Board of Directors has approved the commission of a Feasibility Study for Lake Superior
Lithium Inc. Generally, forward-looking information can be identified by the use of forward-looking
terminology such as "add" or "additional", "advancing", "anticipates" or "does not anticipate",
"appears", "believes", "can be", "conceptual", "confidence", "continue", "convert" or "conversion",
"deliver", "demonstrating", "estimates", "encouraging", "expand" or "expanding" or "expansion",
"expect" or "expectations", "forecasts", "forward", "goal", "improves", "increase", "intends",
"justification", "plans", "potential" or "potentially", "promise", "prospective", "prioritize", "reflects",
"robust", "scheduled", "suggesting", "support", "top-tier", "updating", "upside", "will be" or "will
consider", "work towards", or variations of such words and phrases or state that certain actions, events
or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved".
Forward-looking information is subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or achievements of the Company to
be materially different from those expressed or implied by such forward-looking information, including
risks associated with mineral exploration and development operations such as: environmental
hazards and economic factors as they affect the cost and success of the Company's capital
expenditures, the ability of the Company to obtain required permits and approvals, the ability of the
Company to obtain financing, uncertainty in the estimation of mineral resources, uncertainty with
respect to the ability to successfully construct and develop the Company's lithium processing facility,
the price of lithium, no operating history, no operating revenue and negative cash flow, land title risk,
the market price of the Company's securities, the economic feasibility of the Company's mineral
resources and the Company's commercial viability, inflation and uncertain global economic
conditions, uncertain geo-political shifts and risks, successful collaboration with indigenous
communities, changes in technology and advancements in innovation may impact the development
of the Company's technology innovation centre and its lithium processing facility, future pandemics
and other health crises, dependence on management and other highly skilled personnel, title to the
Company's mineral properties, the ongoing war in Ukraine and Israel, extensive government and
environmental regulation, reliance on artificial intelligence technology to influence mining operations,
volatility in the financial markets, uninsured risks, climate change, threat of legal proceedings, as well
as those risk factors discussed or referred to in the annual information form of the Company dated
November 28, 2024 (the "AIF") under the heading "Description of the Business - Risk Factors".
Forward-looking information is based on the reasonable assumptions, estimates, analysis and
opinions of management made in light of its experience and perception of trends, current conditions
and expected developments, as well as other factors that management believes to be relevant and
reasonable in the circumstances at the date that such statements are made, but which may prove to
be incorrect. Although the Company believes that the assumptions and expectations reflected in such
forward-looking information are reasonable, undue reliance should not be placed on forward-looking
information because the Company can give no assurance that such expectations will prove to be
correct. In addition to other factors and assumptions identified in the AIF, assumptions have been
made regarding, among other things: management of certain of the Company's assets by other
companies or joint venture partners, the Company's ability to carry on its exploration and
development activities without undue delays or unbudgeted costs, the ability of the Company to obtain
sufficient qualified personnel, equipment and services in a timely and cost effective manner, the
ability of the Company to operate in a safe, efficient and effective manner, the ability of the Company
to obtain all necessary financing on acceptable terms and when needed, the accuracy of the
Company's resource estimates and geological, operational and price assumptions on which these are
based and the continuance of the regulatory framework regarding environmental manners. Readers
are cautioned that the foregoing list is not exhaustive of all factors and assumptions that may have
been used. Although the Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not undertake to update any forward-
looking information, except in accordance with applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/280763