Vancouver-based FPX Nickel has released a scoping study confirming the economic and strategic viability of a standalone nickel refinery in British Columbia, which would be North America’s largest producer of battery-grade nickel sulphate.

Conducted by Wood Canada, the study highlights the refinery’s potential as a low-cost, low-carbon operation supporting the electric vehicle (EV) battery supply chain. The facility would process awaruite concentrate into battery-grade nickel sulphate while recovering by-products such as cobalt, copper, and ammonium sulphate.

Awaruite, a naturally occurring nickel-iron alloy, can be refined using simple mineral separation techniques, including magnetic separation and froth flotation. The refinery is designed to produce 32 000 t/y of nickel in sulphate form, along with 570 t/y of cobalt (as cobalt carbonate), 240 t/y of copper (as copper cement), and 87 400 t/y of ammonium sulphate, a by-product for the agricultural sector.

FPX Nickel CEO Martin Turenne said the study reinforces awaruite’s potential as a disruptive feedstock for battery-grade nickel sulphate production, offering a "made-in-Canada, mine-to-battery solution" that supports domestic and allied EV supply chains.

The study estimates an after-tax net present value of $445-million and an internal rate of return of 20% at a nickel price of $8.50/lb. The facility is projected to operate for 40 years, with refining costs of $1 598/t nickel before by-product credits, dropping to $133/t nickel ($0.06/lb) when factoring in by-product sales.

All-in production costs—including mining, processing, and refining—are estimated at $8 290/t nickel ($3.76/lb), placing the project in the lowest decile of global cost curves. The initial capital cost is pegged at $424-million, with an additional $40-million in sustaining capital and $42-million in closure costs. No expansion plans are currently considered.

FPX Nickel intends to publish the full study report on its website by the end of the first quarter of 2025. The company noted that the refinery project is independent of its Baptiste nickel project and does not impact its existing mineral resource estimates.