Lithium project developer Nemaska Lithium will supply Johnson Matthey with 61 000 t of lithium hydroxide from its Shawinigan plant for ten years under a modified existing supply agreement, the TSX-listed company announced on Wednesday.
Supply will start in 2021, but Nemaska pointed out that it would be entitled to, if necessary, reschedule the commencement of supply.
The Quebec-based firm recently terminated a multi-year supply agreement with Livent after the parties failed to renegotiate a revised schedule for delivery of lithium carbonate. Nemaska was supposed to start supplying Livent in April this year.
To date, Johnson Matthey has received more than 80 t of battery grade lithium hydroxide solution from Nemaska’s Phase 1 plant in Shawinigan and started receiving lithium hydroxide monohydrate earlier this month.
“Johnson Matthey has been a long-term and valued partner and customer of Nemaska Lithium. Our relationship began in 2015/16 with the financing and construction of the Phase 1 plant and we are delighted to be expanding on our initial commercial supply contract,” said CEO Guy Bourassa.
Nemaska said earlier this week that it had set a new pace for construction activities at the Whabouchi mine and Shawinigan plant, after a project cost-blowout left the company short of cash. The mine construction pace will be adjusted to start production in a “timely fashion”.
At the Shawinigan commercial plant, detailed engineering will continue, but construction is on hold until additional financing is secured. The company noted that detailed engineering should contribute to reducing construction and commissioning risks for the plant.
Nemaska needs another $375-million to complete the mine and electrochemical plant projects.