EV Metals Arabia Company for Industry (EVM Arabia), a subsidiary of EV Metals Group plc (EVM), a global battery materials and technology company, announced the signing of agreements for the allocation of 127 hectares of land from The Royal Commission at Yanbu and a gas and power allocation from the Saudi Arabian Ministry of Energy.
These strategic and significant milestones are foundational for the development of EVM’s Battery Chemicals Complex, to position the Kingdom as a global midstream hub for the production of high purity chemicals required by electric vehicle and battery cell manufacturers, delivering into Vision 2030.
The Royal Commission at Yanbu today signed an investment agreement with EVM Arabia at Future Minerals Forum in Riyadh to lease 127 hectares of industrial land to EVM Arabia for the development of the Battery Chemicals Complex of EVM with a value of SR3,375 million at Yanbu Industrial City.
This follows the grant of an Environmental Permit to Construct by the Royal Commission at Yanbu effective from 2nd January 2023, for which a contract will be awarded later this year.
EVM Arabia has also received a gas and power allocation from the Saudi Arabian Ministry of Energy. The gas allocation is equivalent to a daily standard amount of 6,240,000 cubic feet. This will be used for the first two processing trains in the Lithium Chemicals Plant to produce high purity lithium hydroxide monohydrate (LHM) at the world’s first integrated Battery Chemicals Complex of EVM, with construction scheduled to commence in Q3 this year.
Mohammad Bajba, Managing Director and CEO of EVM Arabia comments, “The provision of land and permit to construct, as well as the gas and power allocation, are major milestones for EVM in the Kingdom of Saudi Arabia, vital to our operations in advancing the progress of our Battery Chemicals Complex. These developments highlight support for projects that are strategically aligned with Vision 2030 and the aspirations of the Kingdom for a clean energy future. This is a great start to the year for EVM in the Kingdom. We recognise and thank both the Royal Commission and Ministry of Energy for their support, as we continue to build a fully integrated global battery materials business.”
The Battery Chemicals Complex comprises staged development and expansion of a Lithium Chemicals Plant and a Nickel Chemicals Plant. Commissioning of the first two trains of LHM will commence in 2026 and ramp to an annual production capacity of 50,000 tpa. This will be followed by an additional four trains, taking total production of the Lithium Chemicals Plant up to 150,000 tpa of LHM.
The Battery Chemicals Complex will process intermediate feedstock of critical raw materials from Western Australia to produce high purity chemicals containing lithium, nickel, cobalt, manganese and other metals for downstream production of Cathode Active Materials (CAM).
“Our Battery Chemicals Complex is strategically located to serve demand for high purity chemicals from electric vehicle and battery cell manufacturers both locally, and from target markets in Europe and North America looking for stable and transparent supply chains,” comments Michael Naylor Chairman of EVM Arabia and Managing Director and CEO of EVM Group.
“As structural deficits emerge in the second half of this decade, the Battery Chemicals Complex will emerge as a global midstream hub for the production of high purity chemicals and battery materials as the Kingdom transforms its economy to become a global leader in the energy transition. EVM is privileged to be delivering directly into Vision 2030.”
“We commend the guidance and enablement of the National Industrial Development Centre (NIDC) under the agreement between NIDC and EVM in December 2020 for the development of the Battery Chemicals Complex and Saudi supply chain.”
In 2023, EVM will accelerate exploration of critical minerals in the Kingdom through its subsidiary RIWAQ Al Mawarid for Mining to develop a localised Saudi supply chain for the Battery Chemicals Complex. RIWAQ has been granted 11 exploration licenses covering 1,093 square kilometres and has 142 applications for exploration licenses with an area of 11,350 square kilometres in process, which have identified or potential for critical minerals containing lithium, nickel, cobalt, copper, platinum group metals and rare earth elements.
