Critical Elements complete Positive Engineering Study for a Lithium Hydroxide Monohydrate Plant
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PRESS RELEASE
Critical Elements complete Positive Engineering Study for
a Lithium Hydroxide Monohydrate Plant
August 11 th , 2022 - MONTRÉAL, QUÉBEC – Critical Elements Lithium Cor poration (TSX-V: CRE) (US
OTCQX: CRECF) (FSE: F12) ( "Critical Elements" or the "Corporation" ) is pleased to announce
completion of an Engineering Study for a Lithium Hy droxide Monohydrate plant. Consistent with the
Corporation’s conservative, phased approach, the st udy is based on a standalone conversion plant and
does not constitute a “mineral project” for the pur poses of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects . Furthermore, the plant does not form part of the Corporation’s Rose
Lithium-Tantalum project which consists solely of a mine to produce spodumene and tantalum
concentrates (for more details, see press release d ated June 13, 2022, announcing the results of a new
positive feasibility study on the Rose Lithium proj ect). As at the date hereof, notwithstanding today’ s
announcement, the Corporation is not in a position to confirm that a Lithium Hydroxide Monohydrate plant
will ever be implemented.
This strategic milestone could enable Critical Elem ents to become an important player in the North
American Lithium market. Generating separate, stand alone engineering studies for (i) the Rose Lithium-
Tantalum project and (ii) the Lithium Hydroxide Mon ohydrate plant may optimize the outcome of
discussions with potential strategic investors and end-users.
The Engineering Study for a Lithium Hydroxide Monoh ydrate plant is based on a yearly production of
30,670 tonnes of high-quality battery grade lithium hydroxide monohydrate from 220,587 tonnes of
spodumene concentrate purchased solely on the world market on long term contract basis. The study
does not rely on or is not based on any purchases o f spodumene concentrate from the Corporation’s
Rose Lithium-Tantalum project. The operating parameters for the Engineering Study were taken from the
joint Metso Outotec and Critical Elements Lithium Corporation piloting programs.
Lithium Hydroxide Plant
The lithium hydroxide plant design and technology w as developed by Metso Outotec. It consists of four
main areas; calcination, hydrometallurgy, reagent p reparation, and final product packaging. The site
infrastructure was designed to enable operation of the Process plant.
The Calcination Area consists of the conversion of the spodumene into a leachable concentrate. This
step is required prior to the hydrometallurgical process.
The calcination area includes drying and pre-heatin g the feed material in a preheating stage, calcinat ion
in a fluidized-bed calciner and product cooling in a cooling step and fluidized-bed cooler, respective ly.
The calciner would be fired with natural gas.
The Hydrometallurgical area includes the pressure leaching, conversion, ion exchange and crystallization
stages to produce battery grade lithium hydroxide monohydrate.
Metso Outotec technologies result in a compact footprint lithium hydroxide production plant with optimized
energy-efficiency and low chemical consumption to p roduce 27,000 metric tons per annum of Lithium
Carbonate Equivalent (LCE), which corresponds to 30,670 metric tons per annum of battery grade lithium
hydroxide monohydrate (LMH).
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Figure 1: Process flowsheet
Figure 2: View of the Lithium Hydroxide Conversion Plant
Infrastructure
The infrastructure supporting Metso Outotec’s lithium hydroxide process plant was designed by WSP and
includes the following areas:
Site Earthwork (road, industrial pad, buried servi ces, parking, etc.);
Administration building and warehouse;
Boiler, compressors, and cooling tower building;
Spodumene handling and storage;
Analcime sand handling and storage;
Electrical substation.
The location of the plant has not yet been identifi ed. There are several potential properties availab le in
the province of Québec, Canada, with the necessary amenities proximal to where the plant could be
constructed. Locating the plant on any of these pro perties is not expected to significantly impact the
capital and operating costs of this project. For th e purpose of the study, the plant was assumed to be
constructed in the Bécancour Industrial Park across the river from Trois-Rivières, an important region al
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hub on the Saint-Lawrence River offering a central access to Québec highways, railways and the Saint-
Lawrence Marine Corridor.
Figure 3: Property General Arrangement
As at the date hereof, the Corporation is not in a position to confirm that a Lithium Hydroxide
Monohydrate plant will ever be implemented or that it will be located in the Bécancour area.
Costs
The costs prepared for the study are based on a Cla ss 3 type estimate as defined per the American
Association of Cost Engineers (AACE) International Practice 18R-97 (Cost estimate classification system
– As applied in Engineering, Procurement, and Const ruction in the Process industries). The capital cos t
estimate has an accuracy of +/-15% based on costs of Q2 2022.
Metso Outotec provided capital cost estimates for t he process equipment, electrification, instrumentation,
automation, piping, engineering, and technical assi stance during commissioning. WSP Canada
estimated the capital cost construction of the plan t building based on quantities provided by Metso
Outotec. WSP Canada estimated the capital cost for all site infrastructure and equipment outside the
plant’s battery limits.
The annual and unit process operating costs for the processing plant were determined for an annual
production of 30,670 metric tons per year of batter y grade lithium hydroxide monohydrate (LMH). The
estimated operating costs for the Lithium Hydroxide Plant include labour, electricity costs, natural g as
consumption, potable and industrial water costs, ma intenance materials, mobile equipment costs, and
reagents. Metso Outotec provided the consumption of reagents and services on which WSP Canada
based their respective costs.
Next Steps
Given the positive results of the study, Critical E lements will continue to evaluate possible site loc ations
for a potential future plant. The Corporation is en gaged in a process with its financial advisor, Cant or
Fitzgerald, to identify a strategic partner for the Rose Lithium-Tantalum project and has been working to
maintain strategic flexibility which explains the s tandalone nature of the Lithium Hydroxide Monohydra te
plant. At this time, the Corporation is not in a po sition to take a decision on implementation of the Lithium
Hydroxide Monohydrate plant. Until a definitive agr eement is in place with a strategic group, the
Corporation’s strategy is to maintain that flexibility.
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The primary focus of the Corporation continues to b e the development of the Rose Lithium-Tantalum
project, which has received approval from the Feder al Minister of Environment and Climate Change on
the recommendation of the Joint Assessment Committe e, comprised of representatives from the Impact
Assessment Agency of Canada and the Cree Nation Gov ernment. The Corporation remains confident in
receiving similar approval under the Québec environmental assessment process and believes that receipt
of Québec approval may be catalytic in concluding the aforementioned discussions.
Strategic Partner and Project Financing Discussion
Critical Elements continues to work closely with it s financial advisor, Cantor Fitzgerald, to evaluate
ongoing interest from global strategic partners that seek to accelerate the Rose Lithium-Tantalum proj ect
to production.
The process is organized and competitive and interest in the project is strong. In parallel, the Corporation
is working with banks and financial institutions to accelerate the debt financing portion of the project.
The Corporation has held discussions with several a utomobile manufacturers, cathode manufacturers,
trading houses and cell manufacturers. A substantial number of non-disclosure agreements with potential
strategic partners are now in place, illustrative o f the competitive tension in the lithium market. Th ese
parties are currently in the process of reviewing the Corporation’s extensive data set in the data room.
Given their track-record, end-users recognize the ability of Critical Elements’ management to successfully
deliver lithium products and our development strate gy provides the flexibility to meet all major end-u sers’
current and future needs.
Consultants
The study is the work of several consultants includ ing WSP Canada, Metso Outotec, and Gerrit Fuelling.
Metso Outotec was responsible for the spodumene cal cination and conversion to LiOH process design
and equipment. The calcination of the concentrates was designed by Outotec GmbH & Co. of Germany
and the hydrometallurgical conversion to LiOH was designed by Metso Outotec (Finland) Oy of Finland.
WSP Canada was responsible for the infrastructure n ecessary for the operation of the lithium hydroxide
plant and study integration. Gerrit Fuelling provid ed the market study giving guidance for the price
forecast for lithium hydrate monohydrate and spodumene concentrates.
The study is based on a standalone conversion plant and does not constitute a “mineral project” for th e
purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects . Furthermore, the
plant does not form part of the Corporation’s Rose Lithium project which consists solely of a mine to
produce spodumene and tantalum concentrates. As at the date hereof, notwithstanding the results
announced today, the Corporation is not in a positi on to confirm that a chemical plant to produce high
quality lithium hydroxide monohydrate will ever be implemented.
About Critical Elements Lithium Corporation
Critical Elements aspires to become a large, respon sible supplier of lithium to the flourishing electr ic
vehicle and energy storage system industries. To th is end, Critical Elements is advancing the wholly
owned, high purity Rose lithium project in Québec. Rose is the Corporation’s first lithium project to be
advanced within a land portfolio of over 700 square kilometers. On June 13 th , 2022, the Corporation
announced results of a feasibility study on Rose fo r the production of spodumene concentrate. The afte r-
tax internal rate of return for the Project is esti mated at 82.4%, with an estimated after-tax net pre sent
value of US$1.9 B at an 8% discount rate. In the Co rporation’s view, Québec is strategically well-
positioned for US and EU markets and boasts good in frastructure including a low-cost, low-carbon power
grid featuring 93% hydroelectricity. The project ha s received approval from the Federal Minister of
Environment and Climate Change on the recommendatio n of the Joint Assessment Committee,
comprised of representatives from the Impact Assess ment Agency of Canada and the Cree Nation
Government; The Corporation is working to obtain si milar approval under the Québec environmental
assessment process. The Corporation also has a good, formalized relationship with the Cree Nation.
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For further information, please contact:
Patrick Laperrière
Director of Investor Relations and Corporate Development
514-817-1119
www.cecorp.ca
Jean-Sébastien Lavallée, P. Géo.
Chief Executive Officer
819-354-5146
www.cecorp.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is described in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary statement concerning forward-looking statements
This news release contains “forward-looking informa tion” within the meaning of Canadian Securities leg islation.
Generally, forward-looking information can be ident ified by the use of forward-looking terminology suc h as
“scheduled”, “anticipates”, “expects” or “does not expect”, “is expected”, “scheduled”, “targeted”, or “believes”, or
variations of such words and phrases or statements that certain actions, events or results “may”, “cou ld”, “would”,
“might” or “will be taken”, “occur” or “be achieved ”. Forward-looking information contained herein inc lude, without
limitation, statements regarding the Corporation's future plans relating to projected a Lithium Hydroxide Monohydrate
plant (the “Plant”); potential financing arrangements; the anticipated production of lithium hydroxide monohydrate and
related processing methods; the anticipated timing of a final investment decision, construction activities and potential
in-service date of the Plant; the anticipated featu res of the future site of the Plant and expected be nefits thereof;
Critical Elements’ opinions, beliefs and expectations regarding the Corporation's business strategy, development and
exploration opportunities and projects, and plans and objectives of management for the Corporation's operations and
properties.
Forward-looking information is based on certain est imates, expectations, analysis and opinions of the Corporation
and in certain cases, third party experts, that are believed by management of Critical to be reasonabl e at the time
they were made. This forward-looking information wa s derived utilizing numerous assumptions regarding, among
other things, the supply and demand for, deliveries of, and the level and volatility of prices of, int ermediate and final
lithium products, expected growth, performance and business operation, future commodity prices and exc hange
rates, prospects and opportunities, general busines s and economic conditions, results of development a nd
exploration, Critical Elements' ability to procure supplies and other equipment necessary for its busi ness. The
foregoing list is not exhaustive of all assumptions which may have been used in developing the forward -looking
information. While Critical considers these assumpt ions to be reasonable based on information currentl y available,
they may prove to be incorrect. Forward-looking information should not be read as a guarantee of future performance
or results.
Although Critical Elements has attempted to identif y 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. Factors that may cause actual results to differ materially from expected results
described in forward-looking information include, b ut are not limited to: the Corporation's ability to access funding
required to invest in available opportunities and projects (including the proposed Plant) and on satisfactory terms, the
current and potential adverse impacts of the COVID- 19 pandemic, including future outbreaks and any ass ociated
policies or restrictions on business, the risk that Critical will not be able to meet its financial ob ligations as they fall
due, changes in commodity and other prices, Critical Elements’ ability to retain and attract skilled staff and to secure
feedstock from third party suppliers, unanticipated events and other difficulties related to construct ion, development
and operation of the Plant, the cost of compliance with current and future environmental and other law s and
regulations, title defects, competition from existi ng and new competitors, changes in currency exchang e rates,
market prices of Critical Elements' securities, as well as those risk factors set out in the Corporati on’s Management
Discussion and Analysis for its most recent quarter ended May 31, 2022 and other disclosure documents available
under the Corporation’s SEDAR profile at www.sedar.com. Forward-looking information contained herein is made as
of the date of this news release and Critical Eleme nts disclaims any obligation to update any forward- looking
information, whether as a result of new information , future events or results or otherwise, except as required by
applicable securities laws.