Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) is advancing plans for a chlor-alkali plant that could become an independent revenue-generating asset complementing the company's longer-term lithium and US critical minerals strategy, according to a new note from Noble Capital Markets .
The proposed commercial-scale merchant plant, to be built in the Western United States, would produce chlorine, hydrochloric acid, and sodium hydroxide from sodium chloride, water, and electricity.
Noble said initial output is expected at 300 short tons per day of chlorine, with potential expansion to 600 st/d depending on regional demand and the supply needs of Century's Angel Island Lithium Project.
The analyst pointed to early commercial support for the project, noting eight non-binding memorandums of understanding that could collectively fully utilize the plant's initial production.
The chlor-alkali plant would be developed separately from the facility already incorporated into the Angel Island feasibility study, with the aim of generating stand-alone returns from third-party sales.
The analyst added that if transportation economics prove favorable, the project could also reduce future reagent supply risk for Angel Island, contribute operating experience, and support the broader development of the lithium project.
Noble noted that management intends to pursue project-level financing that is largely non-dilutive, though financing remains unsecured and the existing offtake MOUs have not yet been finalized.
The firm maintained its Outperform rating and $2.30 price target on the stock.
