Vulcan Energy Resources, lithium producer with net-zero greenhouse gas emissions, and LG Energy Solution (LGES), producer of lithium-ion battery for electric vehicles, have signed a binding lithium hydroxide offtake term sheet (agreement). The agreement is for an initial 5-year term which can be extended an additional further 5 years, with the start of commercial delivery set for 2025.
LGES will 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.
Vulcan Managing Director, Dr Francis Wedin, comments, “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.”