Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to announce that it has entered into a non-binding Letter of Intent (LOI) with Hubei Baijierui Advanced Materials Corporation (BJR) for supply of lithium, caesium and rubidium chemicals from the Company’s planned Phase 1 chemical plant in Abu Dhabi. BJR successfully tested a caesium-rubidium intermediate product from the Company’s pilot plant in 2020 and further product evaluation is planned in parallel with consideration of commercial terms for offtake.
Lepidico’s Managing Director, Joe Walsh said, “Lepidico looks forward to working with BJR and establishing a mutually rewarding long-term relationship. Lepidico’s Phase 1 Project provides a unique opportunity for the supply of caesium and rubidium sulphates for both industrial use and/or conversion to fine specialty chemicals. The Company’s lithium marketing strategy is to supply both industrial users such as BJR and lithium-ion battery supply chain manufacturers via direct sales agreements, with a smaller proportion of output allocated to other industrial users and spot market sales via agency agreement to broaden the customer base. This approach is designed to both manage offtake risk and establish a customer base that will support Lepidico’s longer term growth plans for a Phase 2 Project. This strategy also contemplates a U.S. supply nexus to support the debt funding envisaged under the formal Mandate with International Development Finance Corporation.”
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