On May 23, 2023, Singapore-based company Pan Asia Metals and Vingroup’s member, VinES, a conglomerate in Vietnam, signed an MoU to establish a standalone Lithium facility in one of Vietnam’s industrial areas. Initially, in this 36-month agreement, both companies will consider producing 20-25,000 tonnes of lithium carbonate or lithium hydroxide annually.
Lithium Conversion Facility – About the MoU
According to the MoU, representatives of both companies will form a team to research the Project’s ownership, feedstock availability, and offtake provisions. They will discuss possible collaborations with third-party providers regarding lithium feedstock. The team will also be responsible for optimising logistics. An upgrade of the ESG credentials of the end product, i.e. environmental, social, and governance. After the completion of the final research project, both Pan Asia and VinES will now discuss more and then reach an agreement on terms that will define the Project’s collaboration.
Reasons for Establishing the Deal
The Chairman and Managing Director of Pan Asia Metals, Mr. Paul Lock, states that they are excited to be partnering with VinES, an ESG-focused EV battery manufacturer in Southeast Asia, to evaluate a standalone Lithium Conversion Facility in Vietnam.VinES is an ideal partner for Pan Asia Metals since VinGroup is committed to green technologies and mobility.
They are thrilled to be able to contribute towards the development of the lithium supply chain in Vietnam. Their primary aim is to enable VinES to achieve the desired goals that both of them share.
Its Impact On the Already Existing Operations
Pham Thuy Linh, VinES’ Chief Executive Officer, in her comment, stated that lithium is still considered to be one of the essential raw materials in the battery-making value chain. She also added that having a possible lithium conversion facility next to VinES’s current activities in Vietnam might greatly increase their operating flexibility and synergy. It would also ensure VinES’ complete sustainable development and boost the integrated supply chain.
The MoU agreement is a non-binding one, and it is still yet to be finalised as to when the activities stated by the agreement will be completed finally.
Key Takeaways So Far
- A Memorandum of Understanding (MoU) was established between VinES Energy Solutions and Pan Metals Asia.
- A cooperative feasibility assessment for a standalone lithium conversion facility in a Vietnam industrial region is highlighted in the MoU.
- A positive analysis of the study will lead to a mutual agreement between both companies, which will assist in moving ahead with the Project.
- Pan Asia Metals is still debating whether to confirm a second lithium concession and a supply of lithium concentrate for the finished Project.
- VinES is excited to secure an MoU with Pan Asia Metals, which will mark an exciting step.
- With the MoU in place, the blueprint of the integrated lithium chemical business will be developed soon.