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EV METALS GROUP
Building a downstream battery chemicals processing
MINING | EV METALS GROUP
LS GROUP
g hub in Saudi Arabia for the global energy transition
Since visiting the Kingdom of Saudi Arabia in 2019, EV Metals Group (EVM) has been focused on developing the world’s first integrated Battery Chemicals Complex in the Middle Eastern country, after witnessing its ambitious plans to fully diversify the economy under Saudi Vision 2030. The opportunity to start a global battery chemicals and technology business in a region with easy access to key markets in Europe, Asia Africa and (to a lesser extent) North America was too good to ignore even then, as the global clean energy transition was just beginning to crank into gear. The COVID-19 pandemic has since provided fresh impetus for the low carbon economy, which is currently being built on the widespread electrification of the energy and transport sectors. In recent years, electric vehicle (EV) take-up has mostly trended in China, Europe and North America, however the latter two regions are sorely lacking key components along the entire EV manufacturing supply chain, but particularly at the downstream level. EVM aims to reduce Europe and North America’s reliance on China for battery materials processing by building the Battery Chemicals Complex in Saudi Arabia’s new Yanbu Industrial City. RGN’s editor sat down with EVM CEO Michael Naylor to find out more about the symbolic development.
Jacob Ambrose Willson: EVM is building a global battery chemicals and technology business. What were the key drivers behind this focus on the battery section of the global clean energy transition? Michael Naylor: We are witnessing government intervention at a global scale unprecedented in the history of humankind towards a clean energy future. This is propelling ambitious targets in the transformation to electrification globally. EVM’s strategic objective is to capture a growing share of the battery chemicals business as
stable and transparent supplies
structural deficits in supply
of high purity chemicals
emerge in markets worldwide
and cathode active materials
over the remainder of the
required in rechargeable
decade.
lithium-ion batteries used in electric vehicles (EVs) and
Our business model is based
renewable energy storage.
on the diversification and geopolitical alignment of
EVM is focused on delivering
supply chains for OEMs in
the world’s first integrated
growth markets in Europe
Battery Chemicals Complex
and North America. They are
comprising of a Lithium
looking to secure long-term,
Chemicals Plant, a Nickel
MINING | EV METALS GROUP
Chemicals Plant and a Cathode
MN: The infrastructure in Saudi Our journey to and in the
Active Materials Plant to meet
Arabia is first class and the
Kingdom began in 2019 and
this growing demand.
vast oil wealth means it has all
led us to Saudi Vision 2030, a
the elements needed to build
national initiative to transform
JAW: Why is Saudi Arabia
a successful battery chemicals
the economy of the Kingdom
the perfect location for the
industry. Yanbu Industrial City
from being a global leader in
company’s first integrated
is strategically located near the
energy based on fossil fuels
Battery Chemicals Complex,
largest port on that side of the
to a global leader in energy
and particularly Yanbu
country, with easy access to
based on renewables. The
Industrial City on the Western
Europe and North America for
breakthrough for EVM was
coast?
imports and exports.
found in the aspirations of Vision 2030 and led us to the development of midstream
and downstream processing
the Nickel Chemicals Plant to
energy density cathode active
facilities for the production of
produce 450,000 tpa of nickel
materials, as well as lower
cathode active materials.
sulphate. Construction of the
energy density cathode active
first two processing trains
materials at the Battery
We are fast tracking the
for production of LHM will
Chemicals Complex?
staged development and
start in Q1 2023. This will
expansions of the Battery
closely be followed by the
MN: Cathode active materials
Chemicals Complex to include
Nickel Chemicals Plant and
require high purity chemicals
four processing trains in the
the Cathode Active Materials
in the form of LHM and
Lithium Chemicals Plant
Plant.
nickel, cobalt and manganese
to produce 100,000 tonnes
(NCM) sulphate for high
per annum (tpa) of lithium
JAW: What has shaped the
energy density batteries.
hydroxide monohydrate (LHM)
decision for the company
High energy density cathode
and three processing trains in
to focus on producing high
active materials are required
MINING | EV METALS GROUP
for high performance with
demand growth. Ultimately, this
longer driving distances
leaves new OEMs completely
between recharges. Whereas
exposed to supply, pricing and
lower energy density cathode
cost risks.
active materials containing lithium ferrous phosphate
JAW: How will the company
(LFP) provide lower driving
ensure security of supply for
distances between recharges.
the raw materials (nickel, cobalt, manganese, lithium)
EVM will specialise in the
while the Saudi battery supply
Michael Naylor
production of high energy
chain lacks the upstream
density cathode active
element?
Managing director and CEO
materials but will also develop capacity for production of LFP.
MN: EVM is moving forward with the development of the
Benchmark Minerals
Battery Chemicals Complex
Intelligence forecasts
based on the upstream
structural deficits in the
integration of supply chains
supply of LHM and NCM, the
through production of and life
key chemicals required for
of mine offtake agreements
high energy density cathode
for intermediate products
active materials, commencing
containing lithium, nickel,
in 2024/25 and 2027/28
cobalt, manganese, aluminium
respectively.
and other metals from Western Australia.
There is a massive investment at OEM level by EV
Western Australia is a politically
manufacturers and battery
stable jurisdiction with low
cell manufacturers. However,
sovereign risk and transparent
the level of investment in
supply chains. It is the largest
the upstream supply chain
producer of lithium in the form
for critical raw materials is
of spodumene concentrate for
not sufficient to supply the
global markets. It is also the
Mr Naylor has over 35 years of experience in the management and development of companies engaged in the business of mineral resources, mining finance and process technology in gold, nickel, cobalt, chromium and platinum group metals in Australia and South Africa. He led the acquisition and re-consolidation of the mineral rights and mining tenements covering the Weld Range Complex commencing in 2007. Naylor led and has managed the evaluation of Range Well Mineral Resources since 2009, the Ausinox Stainless Steel Alloy Project, the Range Well MHP Project and the Battery Chemicals Complex. He has been a director and CEO of EVM Nickel Pty Limited since 2010 and CEO of EV Metals Group since 2015. He was formerly a director and CEO of Podium Minerals Limited.
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“The infrastructure in Saudi Arabia is first class and the vast oil wealth means it has all the elements needed to build a successful battery chemicals industry. Yanbu Industrial City is strategically located near a port with easy access to Europe and North America for imports and exports” Michael Naylor – EV Metals Group CEO
largest producer of nickel,
implemented by the Australian
cobalt and rare earth elements
Lithium Alliance Pty Limited
in Australia.
(ALA), a wholly owned subsidiary of EVM, through
EVM will bring world class,
joint ventures and offtake
leading technical capabilities,
agreements as an alternative
technology and know-how
to Chinese companies that
from Western Australia for
currently dominate the
the development of the Saudi
purchase of spodumene
supply chain and the Battery
concentrate from Australia to
Chemicals Complex.
supply chemicals processing companies in China.
We have recently launched the Australian Lithium Alliance, a
As part of ALA, EVM has
strategic initiative to partner
entered into an Earn-in Joint
with Australian companies
Venture agreement with
to accelerate exploration,
Zenith Minerals Limited (ZNC)
development, mining,
to accelerate the exploration
processing and production of
for, and production of
Lithium Minerals. This will be
spodumene concentrate
MINING | EV METALS GROUP
from Zenith’s Split Rocks and
located in the idwest of
containing nickel, cobalt and
Waratah Well Tenements. EVM
Western Australia. The Range
manganese at an MHP Plant
also owns 100% of the Range
Well Resource will produce
within the mining tenements
Well Nickel Cobalt Resource
mixed hydroxide precipitate
in Western Australia. The
MHP will be shipped to the
RIWAQ Al Mawarid for Mining,
Ministry of Energy and the
Nickel Chemicals Plant for
a subsidiary of our company in
Ministry of Investment to
downstream processing to
the Kingdom, has applied for
accelerate the development
produce high purity chemicals
18 exploration licences in five
of the Battery Chemicals
in Saudi.
areas with potential critical
Complex and the Saudi supply
raw materials containing
chain in the Kingdom in line
JAW: How will EV Metals
lithium, nickel, copper,
with Vision 2030.
help Saudi Arabia develop its
cobalt, platinum group metals
own raw materials supply,
and rare earth elements for
JAW: How useful was the
via mineral exploration and
development of the Saudi
recent Future Minerals
the development of mining
supply chain for the Battery
Forum, in terms of
projects?
Chemicals Complex.
focusing conversations and investments on developing
MN: EVM has entered into an
NIDC is our lead agency in
the Saudi mining and battery
agreement with the National
the Kingdom. It guides EVM
materials supply chains?
Industrial Development Centre
in ongoing engagements
(NIDC) for the development of
with other lead agencies
MN: FMF was a strategic
a Saudi supply chain for raw
in the Kingdom including
platform for us to establish
materials in the Kingdom.
the Ministry of Industry
EVM as a frontrunner in the
and Mineral Resources, the
global battery chemicals
MINING | EV METALS GROUP
and technology industry. It
the bottleneck in slowing
feasibility studies for our
opened significant doors for
down the transformation to
unique Battery Chemicals
EVM with key stakeholders
electrification and a clean
Complex.
from the Kingdom, as well as
energy future.
investors and the media. We
The FEED agreement with
are grateful to the Ministers
JAW: How much of a big
Wood is for the first two
and their lead agencies for
step forward was the recent
processing trains of our
their efforts to recognise the
announcement of a FEED
Lithium Chemicals Plant at the
Battery Chemicals Complex as agreement with a subsidiary
Battery Chemicals Complex,
a project of national strategic
of Australia’s Wood Group,
producing 50,000 tpa of LHM.
importance for the Kingdom.
in terms of progressing the
It is designed to process
Battery Chemicals Complex to
spodumene concentrate
construction stage?
containing 6% lithium oxide
It was acutely apparent at FMF that there is a need to address the critical gap in the
imported from upstream MN: Wood Plc have world-
supply chain for raw materials. class technical capabilities and EVM was the only company
experience in delivering LHM
focusing on this issue and
plants in Western Australia
we are aware that further
and have been working with
dialogue needs to take place
us for the last two years on
to ensure it doesn’t become
spodumene concentrators in Western Australia.
Published by Anderson Murray Media Ltd
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