Summary:
- Bindin lithium hydroxide offtake term sheet („Agreement“) signed with LG Energy Solutions („LGES“). LGES is the largest producer of lithium-ion batteries for electric vehicles in the world and supplies its products to top global OEMs.
- The Agreement is for an initial five-year term which can be extended by a further five years, with start of commercial delivery set for 2025.
- LGES to purchase 5,000 metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to 10,000 metric tonnes per year during the second and subsequent years of the supply term.
- Pricing will be based on market prices for lithium hydroxide.
- Conditions precedent to start of commercial delivery include the execution of a definitive formal offtake agreement on materially the same terms by end November 2021, successful start of commercial operation and full product qualification.
Managing Director, Dr. Francis Wedin, commented: „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 EV battery producer in the world. LGES’s operations are of course global, but it is already producing batteries in Europe. 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 LGES.“