Lithium Universe (ASX:LU7) turns refining waste into a cement goldmine
February 10, 2025For a lithium company, entering the cement industry might seem like a detour, but for Lithium Universe (ASX:LU7), it’s a calculated move that speaks to the company’s broader strategy.
The emerging lithium refiner has just inked a Memorandum of Understanding (MOU) with Lafarge Canada Inc., a subsidiary of global building materials giant Holcim, for the exclusive supply of aluminosilicate secondary product (ASCR) from its Bécancour Lithium Refinery.
The deal underscores a growing trend among lithium companies: maximising the value of by-products to bolster revenue streams amid fluctuating lithium prices.
As Lithium Universe Chairman Iggy Tan puts it,
“This is great news for Lithium Universe as we partner with Lafarge Canada Inc. to enhance the North American battery materials supply chain and promote sustainable innovation in Canada’s cement industry”.
The Cement Connection
Aluminosilicate—a by-product of lithium refining—isn’t just waste material.
It has well-documented benefits in cement production, including enhancing compressive strength, reducing production costs, and improving durability.
According to research cited by Lithium Universe, cement containing 30% aluminosilicate showed a 132% increase in 28-day compressive strength compared to standard Portland cement.
Canada’s cement industry is experiencing steady growth, with production volumes reaching 13.8 million metric tonnes in 2022, a 6.2% increase from 2020.
This industry tailwind makes Lithium Universe’s move not just opportunistic, but strategic—providing a circular economy solution while simultaneously locking in a secondary revenue stream.
More Than Just Batteries
At its core, Lithium Universe is positioning itself as more than just a lithium refiner.
While the company’s primary focus remains on the Bécancour Lithium Refinery, its ability to monetise by-products could give it an edge over peers reliant solely on lithium carbonate sales.
The partnership with Lafarge also aligns with the global decarbonisation push, as Holcim aims to make the construction industry greener with low-carbon materials.
The question for investors is whether such deals can future-proof Lithium Universe’s earnings. While lithium demand remains the primary driver, particularly as North America builds out its battery supply chain, these alternative revenue streams could cushion the company from commodity price swings.
With negotiations now turning towards a definitive supply agreement, this deal could be the first of many for Lithium Universe as it leverages its industrial by-products to make a mark in sectors beyond batteries.
If anything, this move highlights the evolving business model of lithium refiners, where resource efficiency and sustainability could be as valuable as the lithium itself.
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