Techno-Economic Modeling of Lithium Concentrate Production from Udawa Lithium Ore, Kaduna State, Nigeria

Abstract The growing global demand for lithium, driven by its essential role in lithium-ion batteries for electric vehicles, renewable energy storage, and portable electronics, has intensified the need for efficient and economically viable lithium processing methods. This study presents a comprehensive techno-economic analysis (TEA) of a spodumene processing plant utilizing Udawa lithium ore as feedstock. The methodology integrates capital expenditure (CAPEX), operating expenditure (OPEX), energy consumption, revenue projections, break-even analysis, and payback period calculations to evaluate the financial feasibility of the proposed plant. The plant is designed to process 2,000 tons per day (TPD) of spodumene ore, producing 50 TPD of lithium concentrate. Key equipment includes vibrating feeders, crushers, ball mills, flotation cells, and drying systems, with total equipment costs amounting to $4,800,000, forming a significant portion of the $12,000,000 CAPEX. Annual operating costs are estimated at $2,677,703.85, with labor, energy, and reagents being the most significant contributors. Comparative analysis of energy sources indicates that compressed natural gas (CNG) is the most cost-effective option, while diesel remains the most expensive, highlighting the importance of energy strategy in operational efficiency. Revenue projections, based on an annual production of 21,900 MT of concentrate at $1,000 per metric ton, suggest an annual revenue of $21,900,000, yielding a gross operating margin of 89.46%. Break-even analysis demonstrates that 2,307.69 MT/year is required to cover OPEX, and 10,000 MT/year in the first year is needed to recover both CAPEX and OPEX. The payback period is estimated between 1 and 3 years, indicating rapid investment recovery and financial attractiveness. Findings from this analysis serve as a valuable reference for stakeholders, investors, and policymakers engaged in the rapidly expanding global lithium supply chain, demonstrating that with strategic planning and efficient management, Udawa lithium ore can contribute significantly to meeting global lithium demand.