Lithium Universe (ASX:LU7) advances U.S. refining ambitions with Brownsville site assessment

Lithium Universe has taken a further step in progressing its North American lithium refining strategy, completing a detailed executive site visit to Brownsville, Texas as part of plans for a second U.S. lithium refinery.

The visit builds on development work already underway at the company’s proposed Bécancour Lithium Refinery Project in Québec and reflects a broader strategy to establish a binational refining platform spanning Canada and the United States.

The Brownsville visit was framed as a technical and strategic assessment rather than a final investment decision, with the emphasis placed on due diligence rather than commitment.

Management focused on evaluating whether the proposed site could accommodate a near replication of the Bécancour refinery design, enabling expansion of the refining footprint while maintaining engineering consistency, capital discipline and operational predictability.

Highlights

• Executive site visit completed at Brownsville, Texas
• Proposed location assessed as potentially suitable for a second lithium refinery
• Strategy centred on replicating the Bécancour refinery design platform
• Logistics, utilities and long term expansion capacity reviewed
• Alignment identified with U.S. critical minerals policy settings
• Next steps include a land lease application and Scoping Study
• Targeted capacity of 18,270 tpa battery grade lithium carbonate

Lithium Universe’s second refinery concept is intended to operate in parallel with the proposed Bécancour project, creating a continental refining network capable of supporting lithium carbonate production across two jurisdictions.

The company plans to leverage engineering work completed during the Bécancour Definitive Feasibility Study, including a Jiangsu derived process flow that has already been optimised and validated.

By adopting a repeatable design, the company aims to reduce engineering costs, shorten construction timelines and limit execution risk through reuse of established equipment lists, suppliers and commissioning procedures.

Logistics formed a central part of the Brownsville assessment, with management reviewing deep water port infrastructure, road freight corridors and intermodal transport options to support spodumene concentrate imports from North America, Brazil and Africa.

The site was also evaluated for its ability to distribute battery grade lithium carbonate to U.S. and Mexican gigafactories, with multiple logistics pathways identified as a way to reduce reliance on any single transport route and improve the resilience of the overall refining platform.

Infrastructure and utilities were also examined in detail, with the site offering access to electricity, natural gas, process water and waste management services considered suitable for a commercial scale lithium refinery.

Management noted that existing industrial networks appear capable of supporting refinery operations without the need for significant upstream infrastructure upgrades.

The land configuration allows for placement of major processing components, including calcining, sulphation, leaching, purification and product handling facilities, while also providing space for potential future expansion.

The company also highlighted alignment between the Brownsville strategy and current U.S. critical minerals policy.

Federal initiatives focused on reshoring lithium conversion capacity, including incentives under the Inflation Reduction Act and funding activity through the Department of Energy, were identified as supportive of domestic lithium processing projects.

The announcement referenced recent U.S. Government investment activity in the Thacker Pass lithium project as an example of policy support for local lithium carbonate production.

Lithium Universe Executive Chairman Iggy Tan said,

“Our strategic site visit marks another major step in building a true binational lithium refining platform. The proposed Brownsville U.S. site has demonstrated all the critical characteristics we look for, land availability, logistics strength, industrial readiness and expansion capacity.”

Following completion of the site visit, Lithium Universe will progress to a formal land lease application and commence a Scoping Study for an 18,270 tpa battery grade lithium carbonate refinery at Brownsville.

Within the broader industry context, the company’s approach reflects a growing emphasis on repeatable refinery design and jurisdictional diversification as North American battery supply chains seek secure and scalable processing capacity.

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