ASX-listed Core Lithium has signed a nonbinding agreement to supply its first European offtake partner, Transamine Trading.

The term sheet of the agreement paves the way for a binding agreement later this year, which will see Core supplying 50 000 t/y of lithium concentrate for five years to the Geneva-based trading company Transamine.

Core MD Stephen Biggins remarks that the promising partnership follows after the company had in-depth engagement with several potential offtakers and project financiers.

Core recently got a mining right for the Finniss lithium project, which is based 25 km from Darwin, in Australia.

“Our partnership with Transamine signals the inevitable establishment and growth of downstream lithium processing and battery manufacturing in Europe.

“China remains a very important market to us. However, the US’s Tesla has recently celebrated producing a million all-electric vehicles and Tesla was the UK’s best-selling vehicle in April. The electric vehicle industry will drive the bulk of lithium demand – and there will be demand for this critical element right across the globe,” Biggins explains.

He adds that despite the restrictions created as a result of Covid-19, and adequate short-term supply, the Transamine agreement provides further confirmation of the strength in long-term lithium demand.

“This offtake term sheet reinforces the confidence in the Finniss lithium project, as well as general lithium demand, and we are encouraged as we progress towards construction, commissioning and production.”

In addition to the Transamine deal and Core’s existing binding offtake agreement with China’s Yahua for 75 000 t/y, the company will continue to actively negotiate with a number of parties for the remaining production from Finniss.

The Finniss lithium project will be able to export up to 175 000 t/y through the Darwin Port.