130,000 Tonnes of Aluminosilicate to Boost Canadian Cement via Lithium Universe-Lafarge MOU
Lithium Universe Limited has signed a non-binding MOU with Lafarge Canada for exclusive supply of aluminosilicate from its Bécancour refinery, aiming to boost cement durability and sustainability in Canada’s growing market.
- Non-binding MOU signed with Lafarge Canada for exclusive aluminosilicate supply
- Aluminosilicate additive enhances cement strength and reduces production costs
- Bécancour Lithium Refinery to produce approximately 130,000 tonnes annually
- Canadian cement industry showing robust growth and sustainability focus
- Partnership aligns with Lithium Universe’s strategy to expand secondary product markets
Strategic Partnership in Canadian Cement Industry
Lithium Universe Limited (ASX: LU7) announced a significant step forward in its commercial strategy by signing a non-binding Memorandum of Understanding (MOU) with Lafarge Canada Inc., a leading cement producer and part of the global Holcim Group. This agreement grants Lafarge exclusive rights to purchase aluminosilicate secondary product (ASCR) generated from Lithium Universe’s Bécancour Lithium Refinery in Quebec.
Aluminosilicate, a by-product of lithium refining, is widely recognized in the cement industry for its ability to improve compressive strength, durability, and reduce production costs. The Bécancour facility is expected to yield around 130,000 tonnes of this additive annually, positioning Lithium Universe as a key supplier in the Canadian cement sector.
Enhancing Cement Performance and Sustainability
The aluminosilicate product comprises silica, aluminium oxide, and ferric oxide with a fine particle size that enhances its reactivity in cement mixtures. Studies cited by Lithium Universe show that cement containing 30% aluminosilicate can increase 28-day compressive strength by 132% compared to traditional Portland cement, and improve three-month strength by 174% over cement with finely ground quartz sand.
Beyond performance, aluminosilicate contributes to sustainability by reducing heat generation during cement hydration and mitigating cracking in large concrete volumes. This aligns well with Lafarge and Holcim’s broader commitment to decarbonizing building materials and promoting greener construction solutions.
Capitalizing on a Growing Market
The Canadian cement industry has demonstrated resilience and growth, with revenues reaching approximately $12.3 billion in 2021 and production volumes increasing by over 6% since 2020. Infrastructure investments and residential construction are driving demand, creating a fertile environment for innovative additives that improve efficiency and sustainability.
Lithium Universe’s partnership with Lafarge taps into this momentum, offering a secondary revenue stream from its lithium refining operations while supporting the circular economy in Québec. Chairman Iggy Tan highlighted the strategic importance of this collaboration in strengthening local supply chains and advancing sustainable innovation.
Outlook and Next Steps
While the MOU is non-binding, both parties are working towards a definitive supply and purchase agreement. This deal could mark a pivotal expansion of Lithium Universe’s market beyond battery-grade lithium chemicals into industrial by-products with strong demand fundamentals.
As the Bécancour refinery progresses towards production, the aluminosilicate supply agreement with Lafarge could provide a stable and profitable outlet for secondary products, enhancing overall project economics and supporting Lithium Universe’s counter-cyclical growth strategy.
Bottom Line?
The Lafarge MOU signals Lithium Universe’s growing footprint in sustainable materials, but the final supply deal will be the true test of commercial impact.
Questions in the middle?
- When will the definitive supply agreement with Lafarge be finalized and what are its terms?
- How will aluminosilicate pricing and demand evolve amid shifting cement industry dynamics?
- What are the potential operational challenges in scaling aluminosilicate production at Bécancour?
