PERTH (miningweekly.com) – Lithium developer Vulcan Energy has inked a binding lithium hydroxide offtake term sheet with lithium-ion battery producer LG Energy Solution.
The agreement is for an initial five-year term, but can be extended by a further five years.
Starting in 2025, LG will purchase 5 000 t of battery grade lithium hydroxide for the first year of the supply term, ramping up to 10 000 t/y during the second and subsequent years of the supply term.
Pricing will be based on market prices for lithium hydroxide, Vulcan said on Monday.
“This is the first binding lithium offtake term sheet for the Zero Carbon lithium project, so it is fitting that it is with the largest electric vehicle battery producer in the world. LG’s operations are of course global, but it is already producing batteries in Europe,” said Vulcan MD Dr Francis Wedin.
“The agreement is in line with our strategy to work with tier one battery and automotive companies in the European market. We look forward to a long and productive relationship with LG.”