Nemaska Lithium (earlier post) reported that project construction and planning are on schedule at both its mine location and the electrochemical plant.

I am pleased that we are progressing according to plan and that we are on track to start producing spodumene concentrate in the second half of 2019 with lithium salts production commencing in the last half of 2020. Our conversations with end users suggest the market for battery grade lithium hydroxide and lithium carbonate remains very tight.

Accordingly, we signed with LG Chem earlier this month our fourth supply agreement and we are currently negotiating the final terms of a fifth agreement with Northvolt and that puts us at more than 90% of our future lithium hydroxide and lithium carbonate production already committed. Our offtake contracts are multi-year agreements with several lasting for a period of up to 5 years. We are also actively marketing the company to new and existing institutional shareholders with recent meetings in Asia, United States, London, Europe and Canada from which we have had much positive feedback.

—Guy Bourassa, President and CEO of Nemaska Lithium

Whabouchi mine site is under construction and prep work is underway for crushing and ore sorting buildings as well as surrounding areas of concentrator.

Further to the recent completion of a CAD1.1-billion (US$840 million) project financing package, the company resumed work at the Whabouchi mine, initiated the purchases of long lead items for both sites and is preparing the Shawinigan site for civil engineering work this summer. To assist in project execution, Nemaska Lithium has already retained the services of several outside engineering and consulting groups:

• The Procurement and Construction Management (PCM) team of Nemaska Lithium is supported by Nardella Group who is responsible to maintain budget control and schedule;

• ABB is providing the electrical equipment and electrical engineering services for both sites;

• DRA Met-Chem is assisting with the mine and concentrator engineering design;

• SNC-Lavalin is retained for the design of the tailings and waste co-disposal site; and

• Hatch Engineering is providing engineering design assistance for the electrochemical plant.

Whabouchi Mine Construction. The mine construction has resumed and has a 12- to 15-month schedule, with concentrate production expected to commence in the second half of 2019. Prior to the most recent project financing, about CAD80 million had already been invested in the Whabouchi site construction and preparation.

Civil works have resumed at the mine site and on-site roads are being completed, administrative offices are installed and are fully operational with full-time staff working at the mine site location.

Civil engineering work is underway for crushing and ore sorting buildings as well as the garage. In addition, civil works on the internal construction of the concentrator building including foundations and structural steel installation continues.

The power line to the mine site from the Nemiscau sub-station has been installed. Installation of the transformer and electrical room is underway and hook up to the grid is pending Hydro-Québec availability, which is currently scheduled for August 2018.

Electrochemical Plant Construction. The electrochemical plant has a 27-month construction schedule. Prior to the most recent project financing, close to CAD20 million had already been invested for the Shawinigan site.

Nemaska Lithium is a developing chemical company the activities of which will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide and lithium carbonate. These lithium salts are mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide.

The company will be operating the Whabouchi mine in Québec, Canada, one of the richest lithium spodumene deposits in the world, both in volume and grade. The spodumene concentrate produced at the Whabouchi mine will be processed at the Shawinigan plant using a unique membrane electrolysis process for which the company holds several patents.