Mineral Resources (ASX:MIN) says a lithium hydroxide plant can be built in Western Australia for $1.3B, meeting global demand from car and battery makers.

At an investor site tour of the Wodgina mine, the company?s Managing Director Chris Ellison told analysts the plant could produce around 50-thousand tonnes a year.

Mineral Resources is set to firm up its joint venture with leading lithium producer Albermarle within 6 weeks.

Trading closed at $72.78 today, up 2.78%.