Avalon Signs MOU with Metso, a World Leader in Critical Minerals Technology, to Advance the Development of Ontario's First Lithium Processing Facility
Avalon Signs MOU with Metso, a World Leader
in Critical Minerals Technology, to Advance
the Development of Ontario's First Lithium
Processing Facility
Toronto, Ontario--(Newsfile Corp. - July 10, 2023) - Consistent with its strategy to become a leading
North American vertically integrated lithium producer,
Avalon Advanced Materials Inc.
(TSX: AVL)
(OTCQB: AVLNF) ("Avalon" or the "Company") is pleased to announce it has signed a memorandum of
understanding to create a strategic partnership with
Metso Corporation
("Metso"), a global leader in
clean, sustainable critical-mineral processing technology.
Zeeshan Syed, President of Avalon Advanced Materials Inc. (left), and Mikko Rantaharju, Vice-President
of Hydrometallurgy at Metso Corp. (right) sign at Canada House, London, UK a memorandum of
understanding to pursue the development of Ontario’s first lithium hydroxide processing facility.
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The agreement, signed at Canada House in London UK, will immediately see the parties seek to
establish terms to develop a lithium hydroxide production facility to process lithium mineral concentrates
that are essential for the North American electric vehicle (EV) battery value chain.
Avalon intends to deploy Metso's world-leading technology to construct and operationalize a full-service
lithium processing facility at the Company's recently acquired Thunder Bay, ON. industrial site. Upon
completion of the project, Avalon will be the first vertically integrated lithium producer in Ontario, while
ensuring Canada's EV battery manufacturing base has a stable, proximate and long-term supply of this
strategically vital resource.
"Metso's platform and technological solutions perfectly complement Avalon's vision to complete an
integrated lithium value chain in Ontario, predicated on innovative process solutions," said Zeeshan
Syed, President of Avalon. "We view Metso as an integral part of this rapidly growing sector, and a
foundational partner in developing internationally best-in-class processing capabilities that are
environmentally sustainable, allowing Avalon to meet the soaring demand for battery-grade lithium."
The Non-Binding Memorandum of Understanding stipulates:
The pursuit of a definitive agreement to establish a lithium hydroxide processing facility in Thunder
Bay, Ont.
Avalon to license Metso technology and solutions to produce lithium hydroxide cathode materials
to serve the EV market.
Allow Metso to conduct testing and engineering work across Avalon's portfolio of critical-mineral
projects, including the Company's flagship deposit at Separation Rapids near Kenora, ON.
The parties anticipate reaching a definitive agreement on or before Sept. 1, 2023.
Metso's sustainable next-generation production and processing technologies are being deployed
internationally by governments and clean-energy producers in order to address and deliver the
necessary supply required by the emerging EV battery industry. Avalon's strategic partnership with
Metso is a first in Canada, and is a significant step towards helping the Company execute on its
vertically-integrated business strategy-and in turn, entrench Ontario's position as an advanced
manufacturing hub serving not only North America, but the world.
"Metso is looking forward to partnering with Avalon and be part of its long-term vision to be a mid-stream
supplier in the lithium hydroxide space. We are aligned with Avalon's vision of the future and proud to
play a key role in technology supply and advancement into clean energy solutions," said Mikko
Rantaharju, Head of Hydrometallurgy at Metso. "We are also extremely excited to be partnering with the
first Ontario conversion facility with Metso's technology. The innovation advantages of the alkaline
process allow for elimination of the use of potentially harmful chemicals such as sulfuric acid and
comparatively reduces overall solid waste and emissions, making it environmentally friendlier and
overall, safer for workers and local surrounding communities."
Canada's Critical Minerals Strategy
This partnership complements Avalon's strategic business objectives, while also providing direct support
to the federal government's Critical Minerals Strategy to increase the supply of responsibly sourced
critical minerals and develop domestic supply chains for the green and digital economy, as announced
by Natural Resources Minister, the Honourable Jonathan Wilkinson, as well as the Honourable Francois-
Phillippe Champagne, Minister of Innovation, Science and Industry.
The planned Thunder Bay processing facility and upstream lithium project in the Kenora region will
create an estimated 500 jobs. It will also enable broader development of northwestern Ontario's regional
lithium assets by other producers seeking to utilize the proximity of Avalon's processing capacity. The
facility will also help foster new economic development opportunities for local and regional First Nations
communities.
"We're honoured to play a role in securing Canada's clean-energy future, and understand the important
work that's still required across both the public and private sectors to deliver on the Province of Ontario
and Ottawa's stated goals," Mr. Syed added.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development company focused on vertically
integrating the Ontario lithium value chain. The company is currently developing its Separation Rapids
lithium deposit near Kenora, ON. while continuing to advance other projects in its portfolio, including its
100%-owned Lilypad Spodumene-Cesium-Tantalum Project located near Fort Hope, ON.
In additional to extraction activities, Avalon is executing on its key strategic objective of developing
Ontario's first midstream lithium hydroxide processing facility, a vital link bridging the gap between
upstream lithium production and downstream EV battery manufacturing. Social responsibility and
environmental stewardship are corporate cornerstones. Avalon is listed on the TSX.
About Metso Corporation
Metso is a leader in providing sustainable technologies, end-to-end solutions and services for the
aggregates, minerals processing and metals refining industries globally. With process and product
expertise, Metso helps customers increase productivity, improve energy and water-use efficiency and
raise their overall environmental performance.
For battery minerals, Metso provides sustainable technology and equipment for the entire production
chain, from the mine to battery materials and black mass recycling with project scopes ranging from
equipment packages to plant deliveries.
Headquartered in Helsinki, Finland, Metso employs over 16,000 people in close to 50 countries with
sales in 2022 of EUR 5.3 billion. The company is listed on the Nasdaq Helsinki.
For investor relations and media inquiries, please e-mail the Company at
, or
phone Zeeshan Syed, President, at (647) 300-4706.
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States
Private
Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation. Forward-
looking statements include, but are not limited to, project work plans, new strategic goals and related
opportunities, that the Company's mission is to vertically integrate lithium processing within Ontario, and
that in the weeks ahead Mr. Monteith and the leadership team expect to implement key steps in their
Phase 1 strategy.
Generally, these forward-looking statements can be identified by the use of forward-
looking terminology such as "potential", "scheduled", "anticipates", "continues", "expects" or "does not
expect", "is expected", "scheduled", "targeted", "planned", or "believes", or variations of such words and
phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be" or "will
not be" taken, reached or result, "will occur" or "be achieved". Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Avalon to be materially different from those expressed or
implied by such forward-looking statements. Forward-looking statements are based on assumptions
management believes to be reasonable at the time such statements are made. Although Avalon has
attempted to identify important factors that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. Factors that may cause actual results to differ materially from
expected results described in forward-looking statements include, but are not limited to market
conditions, and the possibility of cost overruns or unanticipated costs and expenses as well as those risk
factors set out in the Company's current Annual Information Form, Management's Discussion and
Analysis and other disclosure documents available under the Company's profile at
www.SEDAR.com
.
There can be no assurance that such statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Such forward-looking
statements have been provided for the purpose of assisting investors in understanding the Company's
plans and objectives and may not be appropriate for other purposes. Accordingly, readers should not
place undue reliance on forward-looking statements. Avalon does not undertake to update any forward-
looking statements that are contained herein, except in accordance with applicable securities laws.
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