Australia-based EV Metals Group (EVM) said Monday it is partnering with a leading private equity firm specialising in the global mining and minerals sector to explore investment avenues.

The partnership with RCF Management, the manager of Resource Capital Funds (RCF), will focus on further advancing EVM’s lithium chemicals plant (LCP) in Saudi Arabia. The project, part of the chemical complex proposed in the Yanbu Industrial City, is at “an advanced stage.”

The construction-ready project will produce 50,000 tonnes/year of high-purity lithium hydroxide monohydrate, through two processing trains. It targets demand from Europe and the Middle East.

It’s unclear, however, how much EVM intends to raise and when it expects to reach a final investment decision. Construction is scheduled to begin next year. The plant is being designed with the potential for expansion to four additional trains, reaching 150,000 t/y.

Under existing plans, EVM estimates it will need 165,000 t/y of spodumene concentrate (6% lithium oxide) per train, Kallanish notes.

EVM chief executive Luke Fitzgerald notes that RCF’s demonstrated history of “successful investments” in metals and mining makes them “an invaluable partner.”

“At Resource Capital Funds, we are true believers in the energy transition thematic and the need for further sources of refinery capacity for critical minerals outside China,” adds Martin Valdes, head of private equity of RCF. “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.”

In addition to other downstream plans including a nickel chemicals plant, EVM is also pursuing upstream projects in Australia and Saudi Arabia. The company also has other battery materials assets in Europe.