EV Metals Group (EVM), a global battery chemicals and technology company with offices in Australia, Saudi Arabia and the UK, announced on Monday that has signed a partnership agreement with global private equity firm, Resource Capital Funds (RCF), to further advance its Lithium Chemicals Plant (LCP) Project in Saudi Arabia.

RCF, which specialises in the mining and minerals sector, is managed by RCF Management.

Under the agreement, RCF will work with EVM and its wholly owned subsidiary, EV Metals Arabia Company for Industry (EVM Arabia) to secure investment for EVM Arabia’s estimated $906 million Lithium Chemicals Plant (LCP) Project in Yanbu Industrial City in Saudi Arabia, according to EVM’s press statement.

Land, and gas and power allocation agreements for the project were signed in January 2023.

The EVM statement said the LCP Project is at an advanced stage, ready to commence construction for the first two processing trains with a production capacity of 50,000 tonnes per annum of high purity Lithium Hydroxide Monohydrate for customers across Europe and the Middle East.

EVM’s CEO Luke Fitzgerald said RCF’s history of successful investments in metals and mining globally, together with their extensive portfolio of assets under management, makes them an invaluable partner for EVM.

Martin Valdes, Head of Private Equity of RCF, said there is a need for additional sources of refinery capacity for critical minerals outside China.

“Considering the downstream expertise, the strategic geographic location and the advantageous cost of energy that the Kingdom of Saudi Arabia provides, building a lithium chemical plant makes enormous strategic and economic sense,” he said.

In January 2024, EVM had signed a frame agreement with Metso for the LCP project.

In July 2024, the company had announced the successful completion of an initial exploration programme at the Balthaga Lithium Project in the Kingdom. 

EVM said the Lithium Chemicals Plant (LCP) project is being developed as a midstream hub for diversification and geopolitical alignment of supply chains for electric vehicle and battery cell manufacturers.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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