Seems great...

Seems great announcement.

http://www.pilbaraminerals.com.au/site/PDF/7eb31fb6-2962-436e-bc45-a0bcac6d5a0b/UpdateonDownstreamJointVenturewithPOSCO

KEY POINTS from the updates.

• Construction and Ramp Up Budget provided by the JV Company and accepted by Pilbara Minerals, satisfying a material condition precedent.

• Remaining key conditions precedent for completion and formation of the incorporated joint venture (JV or JV Company) now finalised, with completion of equity subscriptions in the JV Company scheduled for mid-April 2022.

• JV to construct and operate a 43ktpa LHM primary lithium hydroxide chemical processing facility (Conversion Facility) in Gwanyang, South Korea, with detailed engineering underway and major civil and construction works expected to commence in the June 2022 Quarter.

• Commissioning of Conversion Facility expected from late 2023.

• Participation in JV supports Pilbara Minerals’ strategic objective of becoming a fully integrated lithium raw materials company and diversifies the Company’s global customer base, providing exposure to the rapidly growing South Korean lithium chemicals market.

Based on the studies and engineering work undertaken since October 2021, the capital development costs for the Conversion Facility are estimated at USD$670-720M1 (excluding any 1 USD Costs are estimated at a USD:KRW exchange rate of 1200 contingency allowance). After allowing for initial working capital and pre-production financing costs, the total funding requirement for the JV is now expected to be
approximately USD$750-800M.

[My notes : 10% more cost but given lithium price jump this is negligible.]

Pilbara Minerals’ Managing Director and CEO, Ken Brinsden, said:
“Pilbara Mineral’s longstanding relationship with POSCO continues to go from strength-to strength, and we are pleased to partner with them to grow lithium chemicals production
to support the massive demand growth that is building around the globe.
“With commissioning expected late 2023, this joint venture places both Pilbara Minerals
and POSCO in a very strong position to participate as one of the few near-term lithium fine
chemicals producers with underwritten raw materials supply that will emerge in the
coming two years. It’s exciting for both the team at Pilbara and our shareholders to be
able to extend our reach in the industry beyond spodumene and merchant markets.”