Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) said it plans to develop a commercial-scale chlor-alkali plant to support the critical minerals supply chain in the western United States and its Angel Island Lithium Project in Nevada.
The proposed plant would produce chlorine, hydrochloric acid and sodium hydroxide from sodium chloride, water and electricity, targeting commercial output of 300 short tons per day of chlorine, with the option to double capacity to 600 short tons per day depending on regional demand and Angel Island's supply needs.
Century Lithium has signed eight non-binding memoranda of understanding with third parties for offtake arrangements that could account for the plant's full initial production, and is in discussions with additional prospective buyers.
The company evaluated candidate sites in Nevada and Utah against feedstock, power, rail access, market proximity, land tenure and permitting criteria, and expects to finalize a site selection shortly.
"In the course of our work on Angel Island, Century Lithium identified chlor-alkali products as a fundamental component of the critical minerals supply chain," said Bill Willoughby, Century Lithium's CEO.
The company's feasibility study for Angel Island already includes an on-site chlor-alkali plant as its base case, and the capital and operating estimates in that study are unchanged by the new announcement. Century Lithium said the proposed plant does not replace that facility and none of its cost is added to Angel Island.
Century Lithium intends to finance the plant on a non-dilutive, project-level basis, through a combination of vendor financing tied to site acquisition, institutional preferred equity, prepayments from offtake counterparties, and potential US government programs supporting domestic critical minerals and industrial capacity. The company has engaged financial advisors and begun consultations with US government financing agencies.
No financing has been secured and no definitive agreements have been signed. Next steps include property negotiations, power and water investigations, and advancing the selected site toward front-end engineering and design and permitting.
Century Lithium shares added 6.5% in Toronto on Tuesday morning.
