Canada’s Nemaska Lithium and Korean chemical company LG Chem have signed an offtake agreement that provides for the supply of battery grade lithium hydroxide by Nemaska to LG.
“We are pleased with this first step towards establishing a long-term commercial relationship between LG and Nemaska. The signing of this agreement is a clear vote of confidence by LG in our business plan and our capacity to be a long-term supplier of lithium hydroxide,” said Nemaska president and CEO Guy Bourassa.
Under this agreement, Nemaska agrees to supply LG, on a take-or-pay basis and through its wholly-owned subsidiary Nemaska Lithium Shawinigan Transformation, with 7 000 t/y of lithium hydroxide, which is produced at Nemaska’s commercial plant in Shawinigan, Quebec, for an initial five-year period, scheduled to start in October 2020.
Nemaska is entitled, if ever necessary, to reschedule the start of the supply period, within certain parameters set out in the agreement and based on the anticipated commissioning, ramping up and production start date for the Shawinigan plant.
Nemaska will be operating the Whabouchi mine, also in Québec. The spodumene concentrate produced at the Whabouchi mine will be processed at the Shawinigan plant using a unique membrane electrolysis process for which Nemaska holds several patents.