Australia’s mining services company Mineral Resources (MRL) is in talks with Albemarle to expand their partnership in the MARBL Lithium Joint Venture (MARBL), Kallanish reports.

In separate statements issued on 9 February, the companies said they signed a non-binding agreement. MRL expects the parties to sign a binding deal over the next three months.

The idea is to change the ownership of the Wodgina mine in Western Australia to 50-50, from the previous 60% Albemarle, 40% MRL structure. MRL would resume management of the mine. Ownership of Kemerton I and II plants, also in Western Australia, would remain 60-40 to Albemarle, with Greenbushes mine feeding the operation.

Additionally, the parties are mulling a new 50-50 JV to own further lithium conversion assets outside of Australia. These would be jointly funded by the parties, and operated by Albemarle. The US company would also remain the exclusive marketer of lithium products from both JVs.

“We have a clear pathway to become one of the world’s largest downstream lithium producers by supplying significant volumes of lithium hydroxide using high-quality spodumene from our portfolio of Tier 1 hard rock mines in Western Australia,” says MRL’s managing director Chris Ellison.

Albemarle ceo Kent Masters says the expansion of MARBL is consistent with the company’s strategy to pursue profitable growth, while being disciplined stewards of capital.

“Broadening our partnership with MRL would allow us to expand lithium conversion capacity with increased optionality and reduced risk to help meet our global customers’ growing need for high-quality, reliable lithium supply,” he concludes.

Separately, MRL also announced it’s taken control of its 51% stake of the Mt Marion spodumene offtake from 1 February. It entered into a seven-month toll agreement for its share to be converted into lithium hydroxide by Ganfeng Lithium in China. First hydroxide sales are expected in May 2022.