Lithium Universe Limited has completed a pre-feasibility study for the Brownsville Lithium Refinery in Texas, delivering a pre-tax net present value (8% discount rate) of approximately US$787 million and a pre-tax internal rate of return of 21.0%.

The study models annual production of up to 18,270 tonnes of battery-grade lithium carbonate, underpinned by a capital cost estimate of approximately US$607 million. That capital estimate includes a US$130 million contingency allowance to account for current construction and geopolitical market volatility. Operating costs are projected at approximately US$3,566 per tonne of lithium carbonate, excluding spodumene feed.

The financial modelling is based on long-term pricing assumptions of US$1,170 per tonne for SC6 spodumene concentrate and US$20,970 per tonne for battery-grade lithium carbonate. The facility is expected to generate approximately US$383 million in annual revenue and US$161 million in annual EBITDA, with a capital payback period of 3.9 years.

The Brownsville project builds on conceptual plans unveiled by the company in October 2025. It follows Lithium Universe’s flagship Bécancour project in Québec, which remains the company’s primary priority as management works to establish a twin-plant refining platform across Canada and the United States.

To minimise technical execution risk, the Brownsville design adopts the operating model and proven conversion technology used at the Jiangsu Lithium Carbonate Plant in China. Executive Chairman Iggy Tan and members of the management team bring direct operational experience from developing the Jiangsu facility.

The refinery site is designed to process third-party spodumene feedstock sourced from Africa, Brazil, and North America, taking advantage of deep-water port access at Brownsville to receive shipments.

Lithium Universe plans to commence a definitive feasibility study and detailed engineering activities, secure the refinery site through long-term lease arrangements with the Port of Brownsville, advance environmental permitting, and finalise long-term spodumene supply agreements.

Read the full announcement: Brownsville Lithium Refinery PFS