FPX Nickel begins study on North America’s largest nickel sulphate refinery

FPX Nickel (TSXV:FPX; OTCQB:FPOCF) has started a scoping study to develop a refinery that would produce battery-grade nickel sulphate, aiming to serve the electric vehicle (EV) battery market. The study is set for completion in the first quarter of 2025 and follows value engineering studies that improved the refinery's operating margin and reduced its risk profile.

The refinery is expected to produce 32,000 tonnes of nickel in nickel sulphate annually, enough to support the production of 450,000 electric vehicles each year. It would be the largest refinery of its kind in North America. The refinery will be built to use awaruite concentrate from Baptiste nickel project in British Columbia.

“Awaruite presents an unparalleled opportunity to significantly expand North America's battery material supply chain,” said FPX Nickel senior VP, projects & operations Andrew Osterloh. “As we close out our value engineering for Baptiste, we are excited at the new value basis for our large-scale, long-life, high-margin and low-carbon project.”

The Baptiste project’s 2023 preliminary feasibility study (PFS) showed the potential for a mine producing 59,100 tonnes of nickel per year over a 29-year life. Awaruite’s unique properties allow it to be processed into either stainless steel or battery-grade nickel and cobalt products for the EV supply chain. The PFS gave Baptiste a base case after-tax net present value of US$2.01 billion at an 8% discount rate with an internal rate of return of 18.6% at a nickel price of US$8.75 per Ib.

In 2024, FPX conducted studies focused on mineral processing, mine planning and refinery planning. These studies highlighted Baptiste’s potential to contribute to North America’s battery supply chain without needing new smelting infrastructure. A pilot-scale test of the refinery’s purification process, funded in part by a $725,000 grant from Natural Resources Canada, is progressing with results expected in October 2024.

FPX’s standalone refinery will be located in central British Columbia. The final scoping study is due in 2025.

For more information, visit www.FPXNickel.com.