Preliminary Feasibility Study Report for EVSX Battery Recycling Plant
Preliminary Feasibility Study Report for EVSX Battery Recycling Plant
-FOR IMMEDIATE RELEASE-
Montréal, June 24, 2021 – St-Georges Eco-Mining Corp. (CSE: SX) (OTC: SXOOF) (FSE: 85G1) is
pleased to disclose that last week it received a preliminary report from Globerpro, the group tasked with
coordinating its ongoing feasibility study for the EVSX proposed battery recycling operation in the city of
Baie-Comeau on the Québec North-Shore.
This press release outlines and summarizes some of the key findings of the study. Some elements have been
kept confidential to protect intellectual property and industrial secrets.
The preliminary report covers many topics in detail, allowing the Company to accelerate permitting and grant
requests as well as alternative financing. The in-depth research involved data obtained from governments,
industry operators, and car manufacturers.
Recent Model Development Evolving in Parallel with the Feasibility Study
The findings helped the Company negotiate with industrial equipment vendors and allowed management to
direct its engineering design and equipment acquisition. The preliminary report also convinced management
to design the plant as a scalable operation wit h the aim to deliver the lowest possible CAPEX costs. The
building and land identified should allow the Company to save months , if not years , of sourcing material,
eliminating construction timelines, and drastically reducing building reconfiguration and adaptation.
The Company’s currently adopted model that will be used for the final feasibility study in support of the
operation’s debt financing is based on four parallel processing circuits. This model allows a first phase of
10,000 tons of batteries per year from the first day of operation up to 90,000 tons of batteries to be recycled
per year using the initial four circuits. Additional capacity to be added in the future could allow for 70,000
tons of feedstock to be processed in the tech plant, representing approximately 225,000 tons of batteries per
year to be recycled at the plant.
• 10,000 tons of batteries entering the industrial process represent approximately 3,000 of mineral
feedstock or battery cells to be treated in the chemical plant portion of the operation.
• The Company expects to be able to process up to 20,000 tons of feedstock per year within the current
building. It aims to process up to 70,000 tons of feedstock per year within the confines of the plant
footprint and land with future expansion.
The Company is negotiating the acquisition of all the industrial equipment required for the first circuit. It
expects reception of these units during the third quarter of this year. The equipment to be delivered is
expected to allow the processing of up to 79,200 tons of gross batteries or approximately 20,000 tons of
feedstock available for the chemical tech plant portion of the EVSX operations in Baie-Comeau. By way of
comparison, Li-Cycle’s declared capacity in Ontario, Canada, is currently 5,000 tons per year with additional
capacities of 15,000 tons presently being planned and built in the United States and a planned plant with a
20,000 tons per year capacity with Redwood Materials also in the United States.
Key Elements of the Preliminary Report
Costs, Capex, Opex, Revenue Projections
Construction costs, equipment acquisitions, and financing are being kept confidential for now. However, the
Company’s management is comfortable to disclose that no large equity financing is being planned to finance
the operations and that cash on hands, grants, and debts, as well as equipment vendor lease-to-buy programs,
should finance the totality of the proposed operations . The Company will release cash flow projections
with excerpts from the final feasibility report expected later this summer.
Key Challenges Identified
Access to Used Batteries and Feedstock Material to be Processed
The main challenge identified by the preliminary report lies in accessing EV batteries to be recycled. The
current availability is severely limited. Projections based on different data sources and systematically
directed interviews with car manufacturers show that the Electric Vehicle battery recycling market is
currently microscopic in size and won’t take flight for another decade.
Table 4 of Report - Projection of electric vehicle batteries available for recycling (Plante, 2021 -05-31)
Figure 6 of Report - Quantity of recycled lithium batteries (in tons) (Flash Battery, 2021)
The Company’s phase 1 project design incorporates four processing circuits: three full-length circuits from
dismantling to purification and one circuit that only targets feedstock and concentrates. Over time this will
allow for easier shut down for maintenance or simply for reconfiguration for other types of batteries.
The current study confirms that the Company will be able to counter the limited availability of EV batteries to
be recycled in the first few years of operations by supplementing the availability of EV batteries with domestic
rechargeable batte ries, commercial ( power tool ) batteries , and feedstocks ( internal combustion vehicle
batteries (ICE)’s black mass, mineral concentrate, etc.).
Competition
The lack of sizeable availability of EV batteries will be exacerbated by a surge of recycling capacity coming
online in the short term. It was noted that EVSX would need to establish partnerships with governments and
industry aggregators if it wants to have access to a steady minimum supply. The preliminary report covers in
detail the partnerships and relationships currently being established. This portion of the report will be kept
confidential for the time being.
Table 7 - Summary of competitors in Canada and the United States (Plante, 2021-05-31)
Environmental Challenges
A preliminary environmental evaluation is detailed in this report. The initial conclusions of the consultants
point to the requirement of an environmental ministerial authorization and exclude the project from the
environmental impact evaluation and examination process (REEIE). This allows the Company to stay within
its projected timeline. In addition, the segregation of the tech plant circuit allows for scalability and ease of
maintenance and limits the size of the acid tanks to less than 10,000 m ³ allowing for simpler environmental
permitting process. The consultants otherwise note tha t phase 2 of the project would bring it within the
constraints of the full environmental review process.
Process Review
A good portion of the report covers the Company’s industrial and chemical processes. Some challenges are
mentioned, like the conversion of some of the process outputs and the disposition of the plastics and other
PVCs. Both aspects are being covered in a partnership with third parties who will remain confidential at this
point.
Some important aspects of the process, specific to the recycling of batteries, should otherwise be disclosed in
this release. One important aspect of recycling domestic and commercial batteries is the usually problematic
residual electric charge.
One challenge mentioned by the report has a solution that is n ot being covered by the preliminary
report: The Company has designed a solution to discharge the batteries’ residual electric charge in bulk and
is working on the recuperation of this electricity to be sold to the private electric grid of the local municipality
in the context of the current project. This aspect of the process will generate new patent filings and, therefore,
will not be disclosed at this time.
Although the validation of the chemical technical process itself is handled by WSP in a “black box” and will
not be disclosed until the final feasibility report, the current report covers all aspects surrounding it.
Material Entering the Industrial Plant
The following table shows the estimated annual tonnage of materials coming into the EVSX battery recycling
plant.
Material Projected Annual Tonnage
Batteries Entering the process – UP1 (packs) 20 000 - 30 000
Batteries Cells entering the Tech Plant - UP5 10 000
Aluminum 2 000
Copper 2 500
Carbon 2 500
PVDF 250
Electrolytes 1500
Plastics 350
Active Cathode Material 4 500
Iron 250
Cooling Liquids To be determined
Electronics To be determined
Minimum Scenario used for Active Cathode Material Recuperation
Cathode active materials impact a battery’s capacity and voltage. Recycling these materials may prevent future
shortages. This table represents the minimum scenario used for Active Cathode Material (ACM) recuperation.
Element Min
t/an
Max
t/an
Li 55 112
Co - 287
Ni - 694
Mn - 863
Fe - 503
Al - 20
List of Material Expected to be Recycled in this Process
Traditional battery recycling focuses on removing expensive metals, leaving the balance of the materials to be
sold, exported, or incinerated in a waste -to-energy program. This is further complicated by the fact that each
battery has its own structure and composition, and manufacturers are not required to disclose battery contents.
The EVSX battery recycling plant will recover typical battery materials as well as metal processing by -
products.
Sub-System Recuperated Material
Cells
Active Cathode Material
Lithium
Cobalt
Nickel
Manganese
Fer
Aluminum
Black Mass
Graphite Particle (PVDF)-Copper
Aluminum
LiPF6 – Electrolyte
Ethylene carbonate- Electrolyte
Dimethyl carbonate- Electrolyte
Polypropylene – Plastic
Polyethylene - Plastic
Polyethylene terephthalate – Plastic
Modules (casings)
Copper
Aluminum
Polyethylene
Electronic
Packs
(global casing)
Copper
Aluminum
Steel
Isolation
Cooling Liquid
Electronic
Regional Logistics
Figure 16 of Report- Baie-Comeau industrial port zone (Ville Baie Comeau, 2018)
Figure 17 of Report - Map of the rail network around Baie-Comeau (ID Manicouagan, 2020-05a)
Local Economic Impact Benefits
The report outlines the advantages of choosing the Baie-Comeau area for the project’s first industrial plant
beyond the infrastructure and geographical location. In addition, the proximity of the Alcoa aluminum plant
is of additional positive merit identified . The research highlights that the level of support the project is
receiving from the City of Baie-Comeau and local governments, for what is overall a small $30 million phase
1 project, would not necessarily be received similarly in other markets. Baie-Comeau is orienting its future
development around battery metals , green energy, and the transport industry. The region sees the EVSX
project as a steppingstone capable of attracting complementary projects over time.
Conclusion of the Report, Excerpt translated from French
The battery recycling plant project presented by EVSX finds its strength in its:
• Original approach to the different stages of separation, distinct from the competition, and ongoing R&D
• Process flexibility to handle batteries with variable compositions
• Potential for upgrading acid residues
• Expertise in processing minerals in solution
Through its location, the project also leverages other assets:
• Strong logistics infrastructure (boats, trucks, trains) in the region
• Possibility of receiving materials from Europe and the USA
• Ongoing discussions with players who supply batteries to be recycled
• Ongoing discussions with potential customers of the materials that will be produced
EVSX's business plan for the coming months is to confirm these strengths, for example , by securing various
letters of intent, and to refine the elements of the project under review as of the publication date of this report.
Among these elements, we may quote:
• The detailed definition of the recycling process and its costing
• Establishing R&D partnerships to carry out this project
• The protection of the intellectual property created
• Establishing partnerships with battery collectors
• Consolidation of the economic and financial model of the pilot plant
• Finding financial resources to invest in the pilot installation
The first phase of this feasibility study highlighted the challenges to be t ackled in the coming weeks, as well
as the opportunities for competitive differentiation . It did not identify any barriers that would prevent the
continuation of the pilot-plant project business opportunity analysis.
About Globerpro
Founded in 1998 in Montreal, Globerpro International supports businesses in their transformation and
development projects. Globerpro’s mission is to support companies by addressing the strategic issues and
challenges they face and to help them stand out through innovation and the quality of their management. Over
the years, the team has earned an enviable reputation for its approach, its knowledge of the markets, the validity
of its actionable recommendations, and its ability to carry projects to concrete outcomes that benefit clients.
ON BEHALF OF THE BOARD OF DIRECTORS
“ Frank Dumas”
FRANCOIS (FRANK) DUMAS
Director & COO
A bout St-Georges
St-Georges is developing new technologies to solve some of the most common environmental problems in the
mining industry. The Company controls all the active mineral tenures in Iceland. It also explores for nickel &
PGEs on the Julie Nickel Project and the Manicougan Palladium Project on the Québec’s North Shore.
Headquartered in Montreal, St-Georges’ stock i s listed on the CSE under the symbol SX, on the US OTC
under the Symbol SXOOF and on the Frankfurt Stock Exchange under the symbol 85G1.
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy
or the accuracy of the contents of this release.