An updated feasibility study for Lithium Ionic‘s Bandeira lithium project in Brazil reports stronger economics, a longer mine life, and lower capital costs.
The project now carries a post-tax IRR of 61%, an NPV8% of US$1.45 billion, and a reduced payback period of 2.2 years. Initial CAPEX was cut by ~28% to US$191 million, supported by a simplified modular plant design and optimized mine scheduling.
With 18.5 years of mine life and average annual output of 177,000 tonnes of spodumene concentrate, Bandeira is positioned to be one of the lowest-cost hard-rock lithium operations globally.
A 2024 drill campaign also added six million tonnes to proven and probable reserves, strengthening long-term supply potential.
For the electric vehicle (EV) sector, this means a stable, low-cost source of spodumene, which is critical for battery cathode materials. It also feeds into the global supply chain that US automakers depend on as they expand domestic cell production.
By providing diversification outside traditional suppliers, projects like Bandeira can support price stability and availability of lithium for American EV manufacturing. The study also emphasizes environmental design: underground mining to reduce dust and noise, dry-stack tailings to cut water consumption and lower risk, and flowsheet optimization based on proven dense media separation (DMS) technology.
These features align with sustainability and ESG requirements increasingly demanded by automakers and policymakers in North America.
Filed Under: Batteries, Technology News